How much is the currency circulation of Aerodrome Finance (AERO)?

The circulating supply of AERO, the native currency of the Aerodrome decentralized liquidity protocol, is calculated by subtracting locked tokens from the total supply, currently standing at approximately 30 million tokens.

Dec 06, 2024 at 04:16 pm

Understanding the Currency Circulation of Aerodrome Finance (AERO)

Aerodrome Finance (AERO) is a decentralized, non-custodial liquidity protocol that enables efficient lending, borrowing, and trading of digital assets. The AERO token is the native currency of the Aerodrome ecosystem, facilitating transactions and incentivizing participation within the protocol.

Currency Circulation: A Comprehensive Explanation

1. Token Allocation and Distribution:

   AERO has a total supply of 100 million tokens, with the initial distribution divided as follows:

   • 50% for the Aerodrome DAO (Decentralized Autonomous Organization)
   • 25% for the founding team and contributors
   • 10% for liquidity incentives
   • 5% for strategic partnerships
   • 5% for community events and marketing

2. Circulating Supply Calculation:

   The circulating supply of AERO represents the number of tokens currently available in the market for trading and use. It is calculated by subtracting the locked or inaccessible tokens from the total supply. As of today, the circulating supply of AERO is approximately 30 million tokens.

3. Factors Influencing Circulation:

   Several factors can influence the circulating supply of AERO, including:

   • Staking and Unstaking: Staking AERO tokens allows holders to earn rewards and influence the governance of the Aerodrome protocol. Staked tokens are temporarily removed from the circulating supply, reducing its availability.
   • Burning Events: Aerodrome may periodically conduct token burns to reduce the total supply and increase the value of circulating tokens. Burns permanently remove AERO from circulation, decreasing its availability.
   • New Token Minting: In certain circumstances, Aerodrome may issue new AERO tokens through liquidity mining or other incentive programs. These newly minted tokens are added to the circulating supply, increasing its availability.

4. Impact on Market Value:

   The circulating supply of AERO plays a significant role in determining its market value. A higher circulating supply typically leads to lower token prices due to increased availability. Conversely, a lower circulating supply can lead to higher token prices due to scarcity.

5. Tracking Currency Circulation:

   The circulating supply of AERO can be tracked through various platforms, including:

   • Official Aerodrome Website: The official website provides real-time updates on the circulating supply and other key token metrics.
   • Blockchain Explorers: Blockchain explorers such as Etherscan and BSCScan allow users to view the total supply and circulating supply of AERO held in different wallets.
   • Cryptocurrency Market Data Providers: Platforms like CoinMarketCap and Coingecko display the circulating supply of AERO as part of their market data.

6. Importance of Monitoring Currency Circulation:

   Monitoring the circulating supply of AERO is crucial for investors and market participants for several reasons:

   • Valuation and Trading: Understanding the circulating supply helps traders assess the scarcity and potential value of AERO tokens.
   • Protocol Health: Changes in circulating supply can indicate liquidity conditions within the Aerodrome protocol and the level of participation from users.
   • Investment Decisions: Investors may adjust their investment strategies based on the circulating supply's impact on the token's market value.