Meteora Proposes to Allocate 25% of MET Token Supply Toward Liquidity Rewards and TGE

Decentralized finance (DeFi) platform Meteora, powered by Solana (SOL), is planning to allocate 25% of its total crypto token supply, MET, for Liquidity Rewards and Token Generation Event (TGE) Reserve, according to a proposal on its governance forum.

The proposal, which is still open for voting, also includes a 20% allocation for Liquidity Rewards Reserve, which will be used for liquidity mining rewards to incentivize liquidity providers for two years post-TGE.

“To ensure that Meteora remains the best place to provide liquidity in the future, we propose the creation of a Liquidity Rewards Reserve, to be strategically leveraged by the Meteora Team to attract liquidity providers,” the proposal stated.

This reserve will likely be used to match token incentives for major launches, continue the liquidity provider (LP) Stimulus Plan (Season 2), and fund new programs to boost user adoption and liquidity.

The proposal is part of Meteora’s broader efforts to optimize its token distribution strategy. Earlier this month, the platform announced two other proposals.

One proposal aims to increase the LP reward allocation from 10% to 15%, with 3% allocated for Launch Pools and Launch Pads.

The second proposal suggests allocating 20% of the total MET supply to the Team Treasury, with these tokens vesting over six years from the TGE.

These initiatives follow a previous suggestion by Soju, a community member, to create a new TGE Reserve for tasks like initial liquidity provision, market-making, and other activities related to the TGE. Soju proposed allocating 5% of the total MET supply to this reserve.

Soju noted that 40% of the circulating supply will be available on day one, and the community, known as the "LP Army," is prepared to contribute. However, they anticipate the need for significant liquidity at launch to handle the anticipated volume.

Several community members expressed their agreement with Soju’s perspective, highlighting the crucial role of sufficient liquidity at TGE.

“I like the proposal, and it indeed makes a lot of sense. Still, I feel 5% for MM is too low. I understand we have the LP ARMY to help, but 40% on day 1 means we need deep liquidity,” one user commented.

Another user added, “I agree with Soju. We need to consider the long-term vision. At present, the community is actively participating, and there are ongoing efforts to expand the ecosystem.”

Earlier this year, several members of the Meteora community raised concerns over a class-action lawsuit filed by Burwick Law against the platform. The lawsuit alleges that Meteora is liable for investors’ losses arising from the LIBRA token rugpull scam.

The suit claims that Meteora falsely advertised the LIBRA token as a legitimate cryptocurrency, despite internal knowledge of its fraudulent nature. It is further alleged that Ben Chow, a co-founder of Meteora, was personally engaged in insider trading of LIBRA tokens.

Following these allegations, Chow announced his departure from the leadership team.