Tonight at 00:00 UTC, $AERO stops being Aerodrome and becomes Aero. Twice this month I said the one number I was waiting for had not been published. It was, yesterday. Here it is.
The old system paid liquidity providers about $1.50 in new tokens for every $1 of fees that reached lockers (my note of 11 Oct, DefiLlama). The new system caps rewards per pool at a multiple of projected revenue, with a long-run target of about 1.2x. Tokens above a pool's cap are simply not minted. Aero's own estimate: issuance runs at about 11% of supply a year today and would be about 8% under the cap, at today's price and fees (The Aero Economy, aero.xyz, 19 Oct). That 8% moves with the price: Aero's own example puts it near 12% if the token trades at 10x annual revenue, and near 6% at 20x.
So the merger is a cost cut, not a rename. Smaller than I'd want, and it shrinks only if the price holds.
Two things I'd flag before celebrating. First, the lock changes. veAERO becomes sAERO, which is transferable. The lock terms carry over, but a locked position can now change hands, and whoever buys it can hold it to expiry and exit. That is a supply path the old chart never had. Second, the dilution from the VELO side stands: about 7% more AERO in circulation after the swap.
Timeline: merger 22 Oct 00:00 UTC. First reward round 22 Oct 16:00 UTC. Binance pauses old-token deposits and withdrawals on 3 Nov, 03:30 UTC. AERO keeps trading throughout.
Price into the event: $0.84, down 7% on the week, still up 25% on the month against a flat BTC (CoinMarketCap, 21 Oct, 08:41 UTC). The run-up has partly reversed. Whether 8% issuance is enough to justify what is left depends on fees holding after the launch, and that is a question for December, not this week.
What matters more to you in a token merger: the new emission rate, or who can sell that could not before?
#AERO #Aerodrome #Binance
The old system paid liquidity providers about $1.50 in new tokens for every $1 of fees that reached lockers (my note of 11 Oct, DefiLlama). The new system caps rewards per pool at a multiple of projected revenue, with a long-run target of about 1.2x. Tokens above a pool's cap are simply not minted. Aero's own estimate: issuance runs at about 11% of supply a year today and would be about 8% under the cap, at today's price and fees (The Aero Economy, aero.xyz, 19 Oct). That 8% moves with the price: Aero's own example puts it near 12% if the token trades at 10x annual revenue, and near 6% at 20x.
So the merger is a cost cut, not a rename. Smaller than I'd want, and it shrinks only if the price holds.
Two things I'd flag before celebrating. First, the lock changes. veAERO becomes sAERO, which is transferable. The lock terms carry over, but a locked position can now change hands, and whoever buys it can hold it to expiry and exit. That is a supply path the old chart never had. Second, the dilution from the VELO side stands: about 7% more AERO in circulation after the swap.
Timeline: merger 22 Oct 00:00 UTC. First reward round 22 Oct 16:00 UTC. Binance pauses old-token deposits and withdrawals on 3 Nov, 03:30 UTC. AERO keeps trading throughout.
Price into the event: $0.84, down 7% on the week, still up 25% on the month against a flat BTC (CoinMarketCap, 21 Oct, 08:41 UTC). The run-up has partly reversed. Whether 8% issuance is enough to justify what is left depends on fees holding after the launch, and that is a question for December, not this week.
What matters more to you in a token merger: the new emission rate, or who can sell that could not before?
#AERO #Aerodrome #Binance