Pallene and Teal are in a bit of a different space. Teal is focused on compile-time type checking. The intention is to encourage you to add type annotations to your entire Lua codebase. It's another take at the problem that Typed Lua was trying to solve. A Typed Lua 2.0, if you want to call it that way.

Pallene, on the other hand, is more focused on performance. The tradeoff is that it doesn't cover the entirety of the Lua language, just the features that we can generate fast code for. The intention is that you can write the performance-critical parts in Pallene and glue everything together using Lua (or Teal).

That said, I certainly wouldn't be surprised if we saw more cross pollination of ideas between these two languages in the future :)