Revised LP Stimulus Plan
This is the breakdown of the first proposal towards $MET – the LP Stimulus Plan.
This proposal includes two changes to the initial plan and our thought processes behind these changes.
You can find the initial LP Stimulus Plan proposal laid out by Ben Chow here: 10% LP Stimulus Plan
While the key aspects in the initial proposal like the basic earning mechanism and the official starting date remains unchanged, we will be proposing two changes to ensure a more fair and impactful reward for our users:
- Change in total allocation from 10% to 15%
- Separate allocation of 3% for Launch Pools and Launch Pads
Let’s break down these proposed changes and our thoughts behind them.
Change in total allocation from 10% to 15%
As the LP Stimulus Plan went over the expected end-date of Dec 2024, We propose an additional, separate 5% allocation for Dec 2024 onwards, in order to reduce the likelihood of dilution for earlier liquidity providers and also to extend the LP Stimulus Plan. This will be on top of the initial proposed allocation of 10%.
Why the additional 5%?
We saw a significant growth in volume in Jan 2025 onwards. While we want to also reward the active LPs during this time, we want to prevent the dilution of the LPs that provided liquidity before this period – thus, the decision to set two separate allocations for the two timeframes.
We also want to ensure that the retail contributors to Meteora’s growth, especially those who provided liquidity during the early stages of the DLMM, are fairly rewarded – instead of a fully linear system that would favour larger liquidity providers.
With that in mind, we propose to split the 10% allocation into an 8% linear allocation for all users and a 2% fixed allocation for our early contributors. This will replace the points multiplier system proposed in the initial plan.
Why a fixed allocation instead of a multiplier?
The focus here is to reward the most valuable users of Meteora – our early adopters, as well as our long-term liquidity providers.
A multiplier system will only reward our early adopters, leaving out long term liquidity providers who may have joined later. Additionally, a multiplier will heavily skew the rewards towards whales that provided liquidity in the early days instead of the early retail adopters.
With a fixed allocation of 2%, we’ll provide an equitable reward for all our passionate, long-term aligned users, and leave no LP behind.
The 2% allocation will be based on verifiable on-chain criteria, such as wallets providing liquidity across a long period of time (to be decided), and wallets that interacted with Meteora between December 2023 to April 2024.
The final allocation breakdown will be as follows:
- 8% of points will be distributed in the period of Dec 2023 to Dec 2024.
- 5% of points will be distributed from Jan 2025 onwards to TGE.
- 2% to be distributed based on on-chain criteria, with a flat allocation per criteria.
Separate Allocation of 3% for Launch Pools and Launch Pads
We propose an exclusion of launch pools and launch pads from the LP Stimulus Plan to further prevent the dilution of rewards for our retail liquidity providers. In exchange, we will provide a separate allocation of 3% for these stakeholders.
For 2025, our strategy is to make Meteora the center of all token creation activity on Solana – bringing even more users into Meteora, and creating new opportunities for the LP Army.
We propose a separate allocation to reward Launch Pools, alongside building a thriving ecosystem of Launchpads, tools, and more. This includes Launch Pools such as TRUMP and CLOUD, Launchpad integrations like GoFundMeme, Virtuals, ElizaOS and more.
This will help achieve our goals of making Meteora the center of new token creations on Solana.
Blacklisting Bad Actors
We will also be undergoing efforts in excluding Bad Actors from any allocation of MET.
Launch Pools linked to rug pulls, wash trading, or suspicious activity will be blacklisted from receiving MET rewards. We intend to do this in public with the involvement of the community, and will update our progress on the efforts towards this.
By making this process community-driven, we’ll be able to crowdsource an open and transparent blacklist that anyone can verify using on-chain data.
With these proposed changes, we want to focus on fairly rewarding all our stakeholders, from users to launch pools, launchpads and other integrators. We hope this provides more clarity into our key considerations with the proposal, and we thank you again for voicing out your concerns during the Community Call.
