Delphi Digital analyzes Aerodrome's tokenomics, arguing AERO inflation concerns are overstated because locked supply and revenue-aligned emissions reduce effective dilution.
Tech & Launches ·
Delphi Digital contends that criticism of Aerodrome's token emissions overstates actual dilution pressure, pointing to locked supply and a mechanism linking new token issuance to protocol performance. The analysis notes that nearly a quarter of total AERO supply is permanently locked by the protocol across team allocations, Flight School, and aligned funds—meaning emissions recycled into these positions never enter the market. The AER Engine mechanism shifts Aerodrome's liquidity incentives from fixed weekly emissions to a model where token issuance tracks the fees individual pools generate, aligning spending with actual protocol revenue rather than a predetermined schedule.
The locked supply argument carries an important qualification. While the protocol maintains a floor through its permanently locked share, the broader locked supply figure fluctuates as external token holders choose whether to re-lock their positions upon expiration. This creates a distinction between the stable, protocol-controlled locked component and the variable portion dependent on holder behavior. The core premise—that effective dilution differs from headline emission rates—rests on whether locked tokens remain sufficiently insulated from market pressure and whether the revenue-aligned emissions model proves sustainable relative to Aerodrome's actual earnings.