#DeFi #Solana #SOL
Image: Visualization of Meteora's proposed MET token allocation.
Meteora, a decentralized finance (DeFi) platform operating on the Solana blockchain, has proposed allocating 25% of its MET token supply toward liquidity incentives and a Token Generation Event (TGE) reserve.
Proposal Details
The proposal outlines two key allocations:
Liquidity Rewards Reserve (20%): Designed to incentivize liquidity providers over a two-year period post-TGE. This reserve aims to support initiatives such as matching token incentives for major launches, continuing the LP Stimulus Plan (Season 2), and funding new programs to boost user adoption and liquidity.
TGE Reserve (5%): Intended for initial liquidity provision, market-making, and other tasks related to the TGE. The proposal acknowledges that while 5% might seem low, the expectation is that the "LP Army" will contribute significantly to liquidity at launch.
Community Response
The community has shown a mix of optimism and concern. While many support the initiative, some members suggest that the 5% allocation for the TGE Reserve may be insufficient, especially considering the anticipated 40% circulating supply on day one.
Strategic Context
This proposal follows earlier initiatives by Meteora to refine its token distribution strategy. On March 20, the platform announced two other proposals:
1. Increasing the LP reward allocation from 10% to 15%, with an additional 3% designated for Launch Pools and Launch Pads.
2. Allocating 20% of the total MET supply to the Team Treasury, with these tokens vested over six years starting from the TGE.
Platform Performance
Meteora's strategic initiatives coincide with an increase in trader activity. The platform has become the third-largest chain by fees over the past week, generating an impressive $21.6 million. Additionally, Meteora’s fees have rebounded strongly in May, reaching $4.2 million in just the past 24 hours.
For more details on the proposal, visit Meteora's governance forum.
