Meteora Proposes 25% MET Token Allocation for Liquidity Rewards and TGE Reserve

Meteora, a decentralized finance (DeFi) platform based on Solana (SOL), has proposed to allocate 25% of its MET crypto token supply toward a Liquidity Rewards and Token Generation Event (TGE) Reserve.The community sentiment around the proposal is mostly optimistic. Yet, users have expressed concerns about the sufficiency of liquidity at launch.How Meteora Plans to Use 25% MET Supply for Liquidity and TGE The proposal was detailed on Meteora’s governance forum. It outlines a 20% allocation for a Liquidity Rewards Reserve. This reserve is 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 read.It 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.Furthermore, TGE Reserve will get 5% of the supply. The supply is for initial liquidity provision, market-making, and other tasks related to the TGE. “My personal take is that 5% is on the low end, considering we have 40% of circulating supply day 1, but anticipate the LP Army to be able to shoulder the difference,” the proposal’s author, Soju, wrote.Many users share Soju’s view, emphasizing the need for sufficient liquidity at TGE.“I like the proposal, and it indeed makes a lot of sense. Nevertheless, I believe 5% for MM might be too low. I understand we have the LP ARMY to help, but 40% running on day 1 means deep liquidity will be extremely important,” a user commented.This proposal follows earlier initiatives by Meteora to refine its token distribution strategy. On March 20, the platform announced two other proposals. The first aims to increase the LP reward allocation from 10% to 15%. Moreover, 3% will be designated to Launch Pools and Launch Pads.The second proposal suggests giving 20% of the total MET supply to the Team Treasury. These tokens will be vested over six years, starting from the TGE.Meanwhile, Meteora’s strategic initiatives coincide with an increase in trader activity. According to data from DeFiLlama, DEX trading volume has surged by approximately 52.53%, rising from $316 million in April to $482 million at the time of writing.The platform has also 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.Meteora Fee Growth. Source: DeFiLlamaThe substantial fee generation points to a highly successful and engaging ecosystem.“The meteora airdrop might be one of the biggest airdrops of all time,” a user claimed, attributing fees as a key factor.Meteora’s path, however, isn’t without its hurdles. The platform faces a class-action lawsuit filed by Burwick Law in March for its alleged involvement in the LIBRA token scandal. In fact, in the aftermath of the LIBRA crypto crash, Ben Chow, Meteora’s co-founder, resigned from the leadership amid insider trading allegations.The post Meteora Proposes 25% MET Token Allocation for Liquidity Rewards and TGE Reserve appeared first on BeInCrypto.