AERODROME'S BLITZSCALING

Summary from the TLDR Crypto newsletter

Aerodrome's critics misunderstand token economics by ignoring velocity. 49% of AERO supply is locked as veAERO, creating ~5.6% net circulating inflation comparable to gold's 2-3% annual rate despite higher gross emissions. The protocol generates $185M in annualized revenue with zero cash burn since emissions are equity distribution rather than expenses, mirroring Google's early stock-based compensation strategy that showed accounting losses while preserving cash. veAERO holders capture 100% of protocol revenue plus rebases that offset dilution, while Aerodrome commands 60% DEX market share on Base with $425M total revenue since launch and accumulation from Coinbase, Circle, and Animoca Brands.