AltLayer introduces reALT token in second phase of staking program

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Quick Take

AltLayer has introduced its restaked ALT (reALT) token as the rollup platform begins the second phase of its staking program.
Restaked ALT is an auto-compounding ERC-20 token issued to users staking ALT in AltLayer’s main staking pool.

Rollup platform AltLayer has rolled out the second phase of its staking program, introducing the restaked ALT token or reALT.

AltLayer is a decentralized protocol that enables developers to create rollups from software stacks such as OP Stack, Arbitrum, and Polygon CDK, described as rollup-as-a-service. The project also plans to introduce what are known as “restaked rollups” — Layer 2 projects that leverage EigenLayer’s restaking mechanism to bootstrap network security.

AltLayer’s native ALT token was launched in January, with ALT staking subsequently enabled in March. Restaked ALT is an auto-compounding ERC-20 token now issued to users staking ALT in AltLayer’s main staking pool that automatically accumulates the rewards earned on a weekly basis.

Existing holders of the underlying stALT token (staked ALT) — an ERC-1155 token representing the staking contribution of holders in the staking pool — can also convert stALT to reALT using AltLayer’s staking portal tool.

How reALT works

Once issued, reALT can be used in multiple pools for restaked rollups, such as the Xterio pool, the AltLayer team explained in a blog post on Thursday. This enables users to simultaneously participate in more than one pool, gaining exposure to other restaked rollup communities and incentives, without unstaking from the main ALT staking pool, to increase their staking yields.

Important changes in phase two include the deprecation of the initial Xterio LaunchPool, with a new reALT-powered pool taking its place, enabling existing stakers to immediately withdraw and migrate. The main ALT staking pool also currently enables immediate withdrawals, though the cooldown period will be reinstated to 21 days, seven days after the start of phase two, the team said.

The introduction of reALT is key to the AltLayer ecosystem, ensuring more staker engagement in preparation for its upcoming MACH Alpha launch — a fast finality service to help secure and scale Layer 2 rollups — they added.

In February, AltLayer announced it had raised $14.4 million in a strategic funding round co-led by Polychain Capital and Hack VC.

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James Hunt is a reporter at The Block, based in the UK. As the writer behind The Daily newsletter, James also keeps you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the latest market updates. You can get in touch with James on Telegram or 𝕏 via @humanjets or email him at [email protected].