Aero (@aeroxyz) has carried out another $AERO buyback and burn, removing 233,000 tokens from circulation. It was the second such operation within a week, following the Momentum Fund's first b
Aero (@aeroxyz) has carried out another $AERO buyback and burn, removing 233,000 tokens from circulation. It was the second such operation within a week, following the Momentum Fund's first burn of 174,000 AERO, worth about $122,000, as reported by Cryptonews.
The AeroFoundation says the Momentum Fund adjusts purchases according to market conditions rather than following a fixed schedule. Aero's own economic overview explains the logic: a buyback on a fixed schedule would spend the same amount whether AERO is cheap or expensive, and its predictability would let other traders buy ahead of it, according to the Aero Economy article.
The approach has a track record. Before full deployment, the Aerodrome Public Goods Fund ran a live pilot using the Momentum Fund's algorithmic framework, beginning in Epoch 111. According to Aero's published analysis, the pilot acquired 8.7 million AERO, averaging about 670,000 AERO per epoch. In Epoch 122, when volatility peaked, the program bought 27.5% of that week's AERO emissions.
The Momentum Fund is a program of the Aero Foundation. Its predecessors, the Public Goods Fund and Flight School, bought back or locked about 110 million AERO, roughly 11% of circulating supply, according to Aero's documentation. The key difference is that those programs bought and locked tokens, while the Momentum Fund can also burn them.
The Momentum Fund holds more sAERO than any other participant in the ecosystem. Rather than selling its holdings, it puts them to work in markets and earns exchange revenue. That income can then support buybacks, burns or ecosystem contributors.
The burns come shortly after the launch of the new Aero exchange. The Block reported that Aerodrome and Velodrome merged to launch Aero, an onchain spot exchange across Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc and Arbitrum. Existing AERO and VELO tokens migrate to a single new AERO token, while veAERO and veVELO positions convert to sAERO.
Burning tokens permanently removes them from circulation, but buybacks and burns do not guarantee a higher price, as Cryptonews noted. The Momentum Fund's rules are designed to respond to market conditions rather than target a specific price level.
Cryptonews: Aero Momentum Fund Completes First BuybackAero: The Aero EconomyThe Block: Aerodrome and Velodrome Merge to Launch Aero
