Aero has bought back and burned 174,000 $AERO, worth about $122,000, through its Momentum Fund. It is the fund's first buyback since the exchange launched a week ago, and the move was announc
Aero has bought back and burned 174,000 $AERO, worth about $122,000, through its Momentum Fund. It is the fund's first buyback since the exchange launched a week ago, and the move was announced by @aeroxyz.
The Momentum Fund operates under set rules with three goals: growing key liquidity pools, steadying the AERO price through buybacks, and sharing staking benefits (sAERO) with builders.
The Momentum Fund is an Aero Foundation program. According to Aero's launch article, it has a mandate to strengthen and stabilize the AERO token economy through contributor grants, strategic allocation to new markets and market-aware token buybacks and burns.
The fund is designed to follow a market-aware approach rather than a fixed schedule. Aero's economic overview describes its mandates as forward-looking allocation to strategically important pools, extending allocation power to ecosystem builders, and deploying protocol revenue to buy back and burn AERO. The same document says backtests on Aerodrome data indicated the strategy could have removed more than 100 million tokens from circulation over two years. That figure is a projection from the project, not a result.
The fund builds on earlier programs. Aero's documentation states that its predecessors, the Public Goods Fund and Flight School, have bought back or locked about 110 million AERO, or about 11% of circulating supply. Those programs bought and locked tokens, while the Momentum Fund can also burn them.
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 new AERO token, while veAERO and veVELO convert to sAERO.
According to CoinMarketCap's coverage, the supply splits 94.5% to Aerodrome holders and 5.5% to Velodrome holders. The report also quotes Dromos Labs founder and CEO Alex Cutler as saying that 100% of the revenue Aero earns goes back to people who stake AERO.
Burning tokens permanently removes them from circulation. Buybacks and burns do not guarantee a higher price, and the Momentum Fund's rules are designed to respond to market conditions rather than target a specific level.
Sources:
Aero: Aero Launches TodayThe Block: Aerodrome and Velodrome merge to launch AeroCoinMarketCap: Aerodrome and Velodrome Merge to Launch Aero on Seven Chains
