Momentum

Chains

Merge

Aero has bought back and burned 174,000 <a href="https://x.com/search?q=%24AERO&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$AERO</a>, 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 <a href="https://x.com/aeroxyz" rel="noopener noreferrer nofollow">@aeroxyz</a>.
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.
<h2 id="what-is-the-momentum-fund">What Is the Momentum Fund?</h2>
The Momentum Fund is an Aero Foundation program. <a href="https://aero.xyz/articles/aero-launches-today" rel="noopener noreferrer nofollow">According to Aero's launch article</a>, 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. <a href="https://aero.xyz/articles/aero-economic-case/" rel="noopener noreferrer nofollow">Aero's economic overview</a> 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 <a href="https://aero.xyz/articles/the-aero-economy/" rel="noopener noreferrer nofollow">its predecessors, the Public Goods Fund and Flight School, have bought back or locked about 110 million AERO</a>, or about 11% of circulating supply. Those programs bought and locked tokens, while the Momentum Fund can also burn them.
<h2 id="background-aero-launched-on-october-21">Background: Aero Launched on October 21</h2>
<a href="https://www.theblock.co/news/defi/2026-10-21-aerodrome-velodrome-merge-aero-421514" rel="noopener noreferrer nofollow">The Block reported</a> 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 <a href="https://coinmarketcap.com/academy/article/aerodrome-velodrome-merge-aero" rel="noopener noreferrer nofollow">CoinMarketCap's coverage</a>, 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:
<a href="https://aero.xyz/articles/aero-launches-today" rel="noopener noreferrer nofollow">Aero: Aero Launches Today</a> <a href="https://www.theblock.co/news/defi/2026-10-21-aerodrome-velodrome-merge-aero-421514" rel="noopener noreferrer nofollow">The Block: Aerodrome and Velodrome merge to launch Aero</a> <a href="https://coinmarketcap.com/academy/article/aerodrome-velodrome-merge-aero" rel="noopener noreferrer nofollow">CoinMarketCap: Aerodrome and Velodrome Merge to Launch Aero on Seven Chains</a>

Aero Momentum Fund Completes First Buyback, Burning 174K AERO Worth About $122K

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