Aleo is a layer-1 blockchain that combines zero-knowledge (ZK) cryptography with programmable smart contracts to enable private, compliant applications. In essence, Aleo aims to make privacy the default setting on a blockchain, allowing developers to build decentralized apps where transaction details remain confidential by design. This unique vision quickly attracted a passionate community of miners and developers. But as Aleo’s network evolved from testnets to mainnet, the mining landscape shifted dramatically – from an early GPU mining frenzy to an ASIC-dominated scene. Along the way, miners have voiced both excitement and disillusionment, sparking debates like “Is Aleo dead?” or does it hold long-term promise? In this article, we explore Aleo’s mining history, the impact of ASICs (like the IceRiver AE series), real user sentiment from Reddit/Bitcointalk, and where the project might be headed.

Early GPU Mining: The Aleo Goldrush

During Aleo’s incentivized testnets (2021–2023), GPU miners flocked to mine Aleo in hopes of future rewards. The community turnout was huge: Testnet 3 saw more than 44,000 GPU provers from 94 countries, driving network difficulty to extraordinary levels. Aleo’s novel Proof-of-Succinct-Work (PoSW) consensus rewarded those who could solve zero-knowledge proof puzzles with efficiency, creating a global race among GPU miners.

Popular GPUs like the RTX 3070 or RX 5700 XT were widely used, and mining pools quickly emerged to handle the massive hashrate. Aleo also distributed rewards generously: miners received millions of credits, and even smaller participants were rewarded through airdrops.

This period was marked by optimism and excitement. Aleo was backed by serious funding – $28M in 2021 and a $200M Series B in 2022 with a16z and Coinbase Ventures among its investors. For miners, this felt like the birth of a future top coin, with GPU rigs humming worldwide in anticipation of Aleo’s mainnet.

The Rise of ASICs – IceRiver AE Series

By late 2023, it became clear that GPUs wouldn’t dominate Aleo forever. Aleo’s algorithm encouraged specialization, and manufacturers seized the opportunity. IceRiver introduced the AE series – ASIC miners dedicated to Aleo.

• AE0: around 60 MH/s at ~100W.

• AE1 Lite: 300 MH/s at ~500W.

• AE3: up to 600 MH/s with top-tier efficiency.

Compared to GPUs delivering just a few MH/s, these ASICs were game changers. At roughly 1.6 J/MH, they consumed far less power than GPU rigs. The efficiency leap was so great that GPU mining became obsolete almost overnight.

Other manufacturers like Goldshell and Bitmain also joined the Aleo ASIC race, confirming that Aleo had entered an industrial mining phase. On Reddit, one miner warned in late 2024: “Bitmain is releasing Aleo ASICs soon – GPUs can’t compete. Do it now while you still can.” The writing was on the wall: ASICs would dominate Aleo mining moving forward.

“Is Aleo Dead?” – Community Reactions

The excitement around Aleo mining turned to frustration for many once the mainnet launched in September 2024. Two key issues fueled anger:

1. Tokenomics Shock – Aleo’s supply came in much higher than expected (1.5B tokens initially, 2.6B in 10 years). The speculative OTC price crashed from around $9 to $3-4, slashing expected mining profits by more than half.

2. Token Lockups – Many testnet miners faced a one-year lock-up on rewards, leaving them unable to sell tokens immediately.

On Bitcointalk and Reddit, miners vented. Some accused Aleo of “cheating miners” and labeled it a “death project.” A few called it “the most disappointing coin I’ve ever mined.” Difficulty charts reflected this sentiment: after spiking before mainnet, difficulty dropped as miners pulled out.

Still, not everyone gave up. A minority of voices argued Aleo was far from dead, noting that the network was live, the price had stabilized, and development was ongoing. “Most say Aleo is dead,” one Redditor wrote, “but not so as of today.”

Aleo’s Long-Term Outlook

Despite the negativity, Aleo still holds unique strengths:

• Cutting-edge tech: private smart contracts powered by zero-knowledge proofs.

• Developer traction: more than 50 projects building on Aleo’s ecosystem by mainnet launch.

• Strong backing: over $200M raised plus an additional $21M in 2025, giving Aleo runway to grow.

• Industrial mining: the existence of IceRiver and upcoming Bitmain ASICs shows confidence that Aleo mining will remain profitable enough to justify hardware development.

While GPU miners have been sidelined, Aleo ASIC miners like the IceRiver AE3 or AE1 Lite continue to power the network efficiently. This shift signals a maturing chain, with mining activity still active – just more concentrated.

Conclusion

Aleo’s mining story is a classic tale of crypto highs and lows. GPU mining brought massive early enthusiasm, while ASIC miners like the IceRiver AE series redefined efficiency and profitability. But with tokenomics surprises and reward lockups, many miners turned bitter, asking “Is Aleo dead?”

The truth: Aleo isn’t dead – but it is facing growing pains. Mining continues with ASICs, the network is live, and developers are still building. For miners, the easy GPU days are gone, but with the right Aleo ASIC miner and cheap power, Aleo mining remains viable.

Ultimately, Aleo’s future depends on whether its ZK-powered vision of private smart contracts gains adoption. If it does, today’s mining challenges could look like temporary turbulence. For now, Aleo stands as a project in transition: not the explosive gem miners once hoped for, but not a failure either. Its story – and mining potential – is still being written.