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Aerodrome: The token release strategy will be determined by a vote from veAERO holders, permitted through AERO Fed

Aerodrome: The token release strategy will be determined by a vote from veAERO holders, permitted through AERO Fed

Bitget2024/12/05 09:16

On December 5, the Base Ecological Project Aerodrome announced that it will create the embedded AERO Fed in the original design at 08:00 on December 4, which allows the protocol to dynamically adjust the AERO release rate in the future. AERO Fed will allow veAERO holders to vote on Aerodrome's token release strategy, with voting available weekly through the Aerodrome user interface. The reason is that since Aerodrome was launched in 2023, the release rate of newly issued AERO tokens has been decreasing by 1% every week. As the release rate decreases, however, Aerodrome's Gas fees are gradually increasing. Officials stated that AERO Fed will replace existing emission schedules with a dedicated governance smart contract currently under review by ChainSecurity and Spearbit and offer three choices: increase total supply's weekly emission rate by 0.01%, decrease total supply's weekly emission rate by 0.01%, or keep it unchanged. The maximum emission rate is set at 1% of total supply per week and a minimum of 0.01% per week.
Foresight News notes that AERO Fed functions similarly to a management body with authority to slightly increase or decrease token emission rates (emission rates) during each epoch based on ever-changing market dynamics.

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