Inflation reportedly cut to around 6.6% The $AERO token's annualised inflation rate has reportedly been cut roughly in half, to around 6.6%, following the merger between @aeroxyz and Velodrom
The $AERO token's annualised inflation rate has reportedly been cut roughly in half, to around 6.6%, following the merger between @aeroxyz and Velodrome. Before the merge, annual inflation stood at about 12%, and projections had pointed to a reduction to around 8% only.
The figure is lower than the project's own early estimates. TokenPost reported that Aero estimated annual issuance at about 8% of supply at current revenue, compared with a rate of about 11% before the change. The project also stated an annualised inflation cap of 20%. Other outlets, including Altcoin Buzz, cited an expected realised inflation of about 12% with a 20% ceiling at launch, and noted these were projections rather than observed figures. The reported 6.6% therefore sits below those published estimates, and readers should treat the different numbers with caution until on-chain data settles.
Aerodrome and Velodrome merged on 21 October 2026 to form Aero, according to CoinPaprika, a single spot exchange spanning seven networks, including Ethereum, Base, OP Mainnet and Arbitrum. Existing AERO converts at one-to-one, while each VELO converts to 0.044 new AERO. Aerodrome holders receive about 94.5% of the new supply and Velodrome holders about 5.5%.
The emissions model has also changed. Legacy emissions on the old contracts stopped at launch, and Aero introduced a system called Predictive Allocation in place of weekly emissions votes. As TokenPost explained, Aero's Gauge Caps set a reward limit for each pool based on projected revenue, with a long-term target of average rewards equal to about 1.2 times projected revenue. AERO above a pool's cap is left unminted, which is the mechanism designed to hold down issuance.
On the market side, BigGo Finance reported that the new AERO token fell about 6% to roughly $0.796 on launch day. Lower inflation reduces sell pressure from new supply, but price action will also depend on exchange revenue, staking demand and how many holders complete the upgrade.
Whether the lower rate is enough to turn sentiment bullish is open to debate. Revenue-linked emissions tie token supply more closely to activity on the exchange, though results will depend on volumes across all seven chains.
TokenPost: Aero Merger Replaces Weekly Voting With Revenue-Linked EmissionsCoinPaprika: Aerodrome and Velodrome Merge Into Aero Across Seven NetworksAltcoin Buzz: Aerodrome and Velodrome Merge Into Aero
