Aero (@aeroxyz) has launched Predictive Allocation, replacing the weekly voting cycle previously used to direct $AERO rewards. Token operators can now allocate rewards to pools they expect to
Aero (@aeroxyz) has launched Predictive Allocation, replacing the weekly voting cycle previously used to direct $AERO rewards. Token operators can now allocate rewards to pools they expect to attract trading activity. In return, they can earn trading fees, MEV revenue and incentives generated by those pools.
Under the old Aerodrome and Velodrome model, vote-escrowed token holders voted once a week to decide where the following week's emissions would go. According to Aero's own economic analysis, that approach rewarded allocators based on a single backward-looking signal, and it could be slow to respond to new opportunities or keep paying pools that were no longer productive by the time a new week began.
Aero says token operators will now allocate rewards to pools in real time, and their share of revenue will stream to them as it accrues rather than arriving as a lump sum. CoinPaprika reported that holders stake AERO to direct the liquidity rewards budget toward markets they expect to generate revenue, with no epochs. Each position must wait 47 hours between allocation changes, according to the same report.
Existing veAERO and veVELO positions convert to staked sAERO, which is transferable and no longer rebases, CoinPaprika said. Dealroom noted that Predictive Allocation is untested at launch.
Last week, Aero launched across seven networks, including Base (@base), Ethereum (@ethereum), Arbitrum (@arbitrum) $ARB and OP (@Optimism) Mainnet. The rollout also covers Ink, Arc (@arc) and Robinhood (@RobinhoodCrypto) Chain. Dealroom reported that the launch date was October 21, 2026, citing core developer Dromos Labs.
The protocol combines Aerodrome Finance and Velodrome Finance (@VelodromeFi) into a unified liquidity layer. On the token side, Dealroom said AERO converts to the new token at 1:1, while each VELO converts at about 0.044 AERO. Supply is split 94.5% to the Aerodrome community and 5.5% to Velodrome, and Dromos said 100% of exchange revenue at launch goes to sAERO holders.
Market reaction was muted at first. BigGo Finance reported the new AERO token fell about 6% to roughly $0.796 on launch day.
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