Aero Predictive Allocation first allocation round
The first Predictive Allocation round for the unified AERO token begins on October 23, 2026 at 00:00. It replaces weekly voting with a continuous flow of rewards to all pools, and sAERO staked before that moment earns rewards from this round.
What is happening
Following the merger of Aerodrome and Velodrome, emissions from the two protocols ended on October 22 and the unified Aero token launched across seven chains: Base, Ethereum Mainnet, OP Mainnet, Arc, Ink, Arbitrum and Robinhood Chain. Old AERO converts to the new token at 1:1, while 1 VELO exchanges for 0.044 new AERO. The first allocation round under the new system starts the next day.
Under the previous ve(3,3) model, veAERO and veVELO holders voted once a week to decide where the following week's emissions would go. That model is now replaced by a staking system: veAERO and veVELO are converted to sAERO, with remaining lock durations preserved and rounded up to the nearest full week. Unlike before, sAERO does not rebase and is transferable. Under Predictive Allocation, sAERO holders can adjust their allocations several times a week, initially with a 47-hour interval between adjustments for each position, and start earning from their chosen pools immediately. Because sAERO is deployed on Base, a single Base transaction can direct rewards to a pool on any of the seven chains.
Emissions are also being tied to protocol revenue. Gauge Caps link each pool's reward cap to its projected revenue, with a long-term aim of roughly 1.2 times projected revenue across the exchange; AERO above the cap is not minted. Rewards are minted only when claimed, and LPs who withdraw before the minimum staking period forfeit them. The annualized inflation cap is 20%.
Why it matters
For sAERO holders, the change shifts incentives from rewarding last week's results to allocating in advance toward markets expected to generate trading activity. Holders who staked before the round starts are eligible for its rewards, so the timing of positions matters. Because staking cannot be unwound until the lock expires, the commitment is longer-term than the previous weekly rhythm suggests.
For liquidity providers and traders, the design links supply to revenue instead of a fixed schedule. Aero estimates the current annual issuance at about 11% of supply, or about 8% if capped at 1.2 times current revenue. Token issuers can pay distributors through Liquidity Payments and Launch Payments, which may affect where liquidity concentrates. How the new mechanism performs in practice, and how liquidity moves across the seven chains, will become clearer as the first rounds proceed.
Key details
- Date: October 23, 2026, 00:00
- Project: Aero (Aerodrome & Velodrome)
- Coins: AERO
- Category: Governance Vote
- Status: Confirmed
- Source: KuCoin News