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How is the Aerodrome Finance (AERO) coin generated?

Aerodrome Finance generates its AERO tokens through an initial token offering (ITO), protocol emissions, and user incentives.

Dec 07, 2024 at 08:06 am

How is the Aerodrome Finance (AERO) Coin Generated?

Aerodrome Finance is a decentralized finance (DeFi) platform that provides a variety of financial services, including lending, borrowing, and trading. The platform's native token, AERO, is used to power the ecosystem and provide rewards to users.

1. AERO Token Generation:

  • Initial Token Offering (ITO): AERO tokens were initially offered through an ITO, which was conducted in two rounds. A total of 100 million tokens were sold during the ITO, raising approximately $5 million in funding.
  • Protocol Emissions: Additional AERO tokens are generated through the Aerodrome Finance protocol. These emissions are used to reward users for participating in the platform's activities, such as lending, borrowing, and trading.
  • User Incentives: A portion of the protocol emissions is allocated to user incentives, which are designed to encourage participation and liquidity on the platform. These incentives include yield farming rewards, liquidity mining rewards, and referral bonuses.

2. Token Distribution:

  • ITO Distribution: 25% of the total token supply was distributed to ITO participants.
  • Founders and Team: 15% of the total token supply is allocated to the Aerodrome Finance founders and team.
  • Ecosystem Fund: 10% of the total token supply is reserved for the platform's ecosystem fund, which supports the development and growth of the Aerodrome Finance ecosystem.
  • Protocol Emissions: The remaining 50% of the total token supply is allocated to protocol emissions.

3. Protocol Emissions Schedule:

  • Linear Release: The protocol emissions are released over a four-year period, starting from the launch of the Aerodrome Finance platform.
  • Halvings: The emission rate is halved every two years. This mechanism is designed to slow down the rate of token inflation and maintain the long-term value of AERO.

4. Governance:

  • AERO Token Holders: Holders of AERO tokens have governance rights over the Aerodrome Finance platform.
  • AERO DAO: An AERO Decentralized Autonomous Organization (DAO) is responsible for governing the protocol and making decisions on its future development.
  • Token Voting: AERO token holders can vote on proposals related to the protocol's parameters, including emission rates, fees, and new features.

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