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

Proposals
67

I think the over all framework is good . Maybe if really wanna adjust, might be the percentage.
For example instead of 5% can increase up to 7.5% for TGE reserves, to be used as needed, with a DAO audit post-TGE and unused tokens returned.

And maybe a small small 1-2% of reserve for Contingency or Flexi Funds

just In case
1/ Smart contract emergency
2/ A huge unexpected launch partner that requires fast liquidity bootstrapping
3/ Unexpected slippage or volatility at TGE

Other than that all good

1 Like
68

What is Solayer’s day 1 utility?

69

i posted a part of this reply on X when soju was asking what we thought about what 0xleocripto said

i like 0xleocripto’s proposal to increase tge reserve from 5% to 8% since i’ve been reading that 5% is on the low end.

This would change TGE reserve from being 1/8th of 40% to 1/5th - in the event that people don’t LP MET as much as Meteora expects.

I think having 15% for future liquidity rewards is good as there will still be rewards, and many ppl likely LP to print fees vs just trying to farm met points (but knowing that there is a potential drop may help offset losses, so thats something…)

i like the idea of incentivizing the LPing of MET at the start (agreeing with point 4) - i say this because (as of right now) we don’t know what the benefits are to holding met (possible staking for ASR or something along those lines), and if there is a benefit, it may outweigh LPing MET.

You might end up with more MET being staked for governance (and ASR, if that will be a thing) and less of it being LPed than you hope, so incentivizing the LPing of MET at the start may be beneficial

As for point number 3, i don’t think we need short term incentives to continue LPing as there is still 15% ish allocated for future liquidity rewards…maybe just need to communicate how future seasons/rewards will work (length of each season or something along those lines).

I don’t see another project that offers tech like DLMMing and being as integrated in the solana ecosystem like meteora is, so i highly doubt that LPing will just cease after TGE without short term incentives

Some other things that I didn’t add to my X post that I am writing here as I am seeking more clarity:

I read that 40% of MET will be in circulation upon TGE (15% for drop + 20% liquidity rewards + 5% TGE reserve = a total 40% MET)

Is it actually 40% in circulation and tradeable if 20% is kept aside for liquidity rewards (numbers may vary if this proposal we’re talking about here my 0xleocripto passes btw)

and how exactly does TGE reserves help with price stability etc if you were to explain it to a five year old. I am somewhat new to web3 and don’t really know the nuances but would LOVE to get a better understanding of how this works

Thanks for reading if you got this far lol!

2 Likes
70

Love the idea. I still believe that this is just a bonus. DLMM is really the gift here, thanks Team for delivering the wonderful app!

2 Likes
71

I believe that the idea I presented in item 3 could actually be associated with another incentive mechanism. The MET lockup model itself, if it is interesting, could use this 2% of MET (whoever locked the tokens would participate in this “incentivized pool”). Another option would be to use this 2% together with the 15% of the Liquidity Rewards Reserve, which would then be a counterproposal of the initial 20% to 17%.
A third option would be to expand the 8% of TGE Reserve to 10%. I think these are some possible adjustments to address the risk of insufficient liquidity that much of the community has expressed concern about. All of this is based on expectations, mainly outlining a more pessimistic scenario that we at LPArmy end up being insufficient in the post-TGE period.
In any case, I still think that the 2% proposal for a greater incentive in the very short term would be welcome, but it is not necessarily essential.

1 Like
72

I agree with the reserves. I believe the LP army will provide the liquidity by staking their tokens so let’s not compete with them.

73

@soju Just as I have been involved in this Protocol since the beginning, after the TGE I believe that we will continue together to Strengthen the $MET. We hope to soon have an Airdrop reward that keeps us excited, fair rewards for everyone who has been there since the beginning and never abandoned the project, we want a tab inside Meteora to We know exactly what score we are making, as there is nothing official yet, and we want the TGE to be released by June at the latest :rocket::rocket::rocket::rocket::rocket::parachute:

74

Nice comment but in term of score visibility I think it’s not really necessary because it can be game easily.

75

i do like this format alot. I would rather people be incentivized for long term use