[DRAFT] Proposal: Allocate 25% to form a Liquidity & TGE Reserve

Proposals
1

As we gear up towards TGE, we want to start discussing proposals that will be targeted toward $MET used during and *after TGE.

We propose the formation of a Liquidity Rewards & TGE Reserve:

  1. 20% Liquidity Rewards Reserve — to be used for 2 years of liquidity mining rewards after TGE
  2. 5% TGE Reserve — to be used for Liquidity Provision, Market-Making, and general other purposes during TGE

Liquidity Rewards Reserve

Today, Meteora DLMM is strategic in its ability for Retail Liquidity Providers to provide good risk-adjusted returns on tokens.

This has spurred the growth of the LP Army, a retail-first group of community members who provide liquidity profitability.

A major success of the LP Army and bootstrapping tool was the LP Stimulus Plan laid out by Ben Chow in December 2023.

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

Some examples of its potential usage will be:

  • Matching token incentives on hyped launches from big teams
  • Continuing the famous LP Stimulus Plan post-TGE (Read: Meteora Points Season 2)
  • Strategically bootstrapping a new program to drive adoption, such as DAMM V2 (as an example).

These 20% are designated fully to be used after TGE.

TGE Reserve

For TGE, a portion of tokens needs to be set aside for initial liquidity, and market-making activities.

We anticipate that:

  • We will use one of Meteora’s primary launch mechanisms, either Meteora DLMM, DAMM V2, or Dynamic Bonding Curve to launch $MET
  • The LP Army will provide a significant amount of liquidity for MET at TGE, leveraging their airdrops from the LP Stimulus Plan
  • Early circulating supply will be high at around 40%~, thus we need more liquidity reserves

With these in mind, we propose that we set aside 5% of $MET for the team to leverage for Liquidity, and other TGE related needs.

All usage of this 5% of MET will be clearly documented and laid out, with excess $MET being returned to the DAO afterwards.

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.

Appendix:

  • JUP Launch Case Study (5% of Liquidity vs 13.5% Circulating Supply)
  • CLOUD Launch Case Study (10% for Meteora DLMM)
59 Likes
2

Hoping LP Army will provide 5-7 Percent from airdrop of 15%
i will provide maximum amount of my allocation

6 Likes
3

Sounds good to me. And love the road plan after TGE as well.

1 Like
4

Hi Soju - will there be an allocation of MET used for staking rewards for the DAO?

2 Likes
5

Real Lp army will add their airdrop to DLMM for the beautiful and fun it. Great opportunity to earn massive fees. I would do that.

5 Likes
6

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.

1 Like
7

5% lq for 40% circulation is too low

1 Like
8

Who is going to be buyjng and selling if we are all providing Liquidity?

2 Likes
9

I like the proposal thats good tbh but 5% lq for 40% circulation is too low

2 Likes
10

The 20% Liquidity Rewards Reserve is a strong move to ensure sustained LP incentives post-TGE. That said, I’d like to suggest that a portion of the overall token allocation (either from this reserve or another) be clearly earmarked for ecosystem development — things like hackathon sponsorships, incubator programs, developer grants, and event support.

These efforts play a crucial role in:

  • Driving real usage of $MET and the Meteora platform
  • Attracting builders who expand the protocol’s utility
  • Strengthening community participation and long-term brand presence

Suggestion:

If not already planned elsewhere, consider allocating 3–5% of total supply toward these ecosystem-building efforts. Alternatively, the Liquidity Reserve itself could be split — for example:

  • 15–17% for Liquidity Mining
  • 3–5% for Ecosystem Growth

This maintains strong LP support while investing in long-term protocol demand and sustainability.

Note: It’s possible this is already planned under a different allocation. If so, would love to see that made more explicit to help the community understand the full picture.

3 Likes
11

As long as the team have the funds to stabilize the price, 5% though on the lowside will be enough.

2 Likes
12

It sounds right the whole road map

13

Interesting idea. Incentives to build. Would of course have to pass muster, like what Geeklad and such do with the community tools eval now

2 Likes
14

I think TGE Reserve should be increased to 7-10%

1 Like
15

I like the ideas. Especially driving new product

1 Like
16

I am of the opinion that this be reviewed.

  1. I opine that 5% liquidity reserve versus 40% circulating supply is too much of a stretch. This imbalance would create an unnecessary risk of slippage, volatility, and negative price discovery during TGE.

  2. Hoping that the LP Army will provide a significant amount of liquidity at launch is speculative at best. The team needs to have a concrete liquidity strategy for TGE.

I had sincerely hoped that, given the issues and reputational damage from the Kesier and BenChow situations, TGE would serve as the redemption arc for Meteora.

In my opinion, this proposal, as it stands, falls short. It leans too heavily on assumptions, under-resources the most critical moment of the token’s lifecycle, and risks repeating mistakes at a time when the community is watching closely.

I hope the team takes these into consideration.

Should there be additional context or information not presently available, I am open to revisiting this position.

4 Likes
17

whatever you guys find it fair..

ps. feels like i spotted a lot of ai generated reply

1 Like
18

all in favor of this proposal.
a clear and structured ongoing reward system for users makes absolute sense and will keep the momentum going.

and absolutely love the idea/ fact of launching with higher float compared to most airdrops/ tge.
hype showed that this is the way to go to ensure positive and sustainable price action when backed by a great product (which meteora has).

one thing to consider and maybe layout/ prepare pre tge as well is a proper burn/ buyback mechanism. to further ensure token and platform success are aligned.
this would not only strengthen community support and marketing but more so the post tge flywheel a la hype:

successful airdrop > free and great marketing/ attention > positive, sustainable price action > more attention/ marketing > more users and more fees > even better price action > perfect positive flywheel

1 Like
19

sounds like a great idea tbh noobie off backing this :folded_hands:

20

We all have been waiting and providing liquidity for a long time.
Rewarding the users with 8-10% will be fair to start with. These loyal users will support met after TGE.
Hoping for the one of best airdrop on solana.

5 Likes