How Token Mergers Protocol Work: The Aerodrome x Velodrome Playbook

What Happens When Two Crypto Projects Share One Token? Token Mergers Protocol is the name used here for a simple idea: two crypto projects join their tokens, their users, and their income into one system. The best recent example went live in October, 2026, when the crypto exchanges Aerodrome and Velodrome became a single platform called Aero. People who search for this topic mostly want to know how token holders are treated, what happens to supply, and where the dangers are. The sections below cover all of that, with the aerodrome and velocodrome dealing as the main examples. It matters because a merger changes who owns what, and the small print decides who comes out ahead. What Is the Token Mergers Protocol, and Why Does It Exist? In a token merger, two projects trade their old tokens for one new token at set rates, so the joined project can run one economy. Projects often do this when two similar products fight over the same users and liquidity, which is the pool of money that makes trading smooth. Aerodrome and Velodrome had the same design, built on the official migration page. for liquidity providers and locked governance tokens, but they lived on different chains. Aerodrome was strong on Base, and Velodrome was strong on OP Mainnet. Merging gave them one brand, one token, and a path to seven networks instead of two. How Does the Token Mergers Protocol Process Actually Work? The process runs in a clear order. First, the teams announce the conversion rates and a launch date. Then holders of the old tokens upgrade through an exchange, which converts coins for people who keep them on the platform, but holders with their own wallets have to start the upgrade themselves, since it doesn’t happen on its own. Locked governance positions convert too, and veAERO and veVELO both turn into a new staked position called sAERO. What Are the Conversion Rates? Rates decide how many new tokens each holder gets. One old AERO turns into one new AERO, while one VELO turns into about 0.044 new AERO. The new supply goes 94.5% to the Aerodrome side and 5.5% to the Velodrome side, which matches how much revenue each one brought in over the 52 weeks before the team announced the deal. Old asset Rate New asset Old AERO 1 to 1 1 new AERO VELO 0.044 per token 0.044 new AERO veAERO Based on locked AERO sAERO VELO Based on locked VELO and the VELO rate sAERO A holder with 10,000 VELO gets 440 new AERO before network fees. The rate sets how many tokens arrive, not what they’re worth, since prices can move during a migration. What Features Define the Aerodrome and Velodrome Model?