Investing in Meteora’s Next Phase of Growth

General
1

We are rolling out two major features on Meteora, Limit Orders and Quote Token Fees.

Alongside these rollouts, we will be embarking on the next phase for Meteora: a phase focused on accelerated growth for Meteora and the LP Army.

We know any change to how Meteora operates matters to LPs, so we want to be clear on the move we’re making, what we are investing in, and how this helps Meteora and the LP Army grow from here.

Over the last 6 months, our focus has been on strengthening the core Meteora product.

We shipped major upgrades across the protocol, including Dynamic Positions, DBC, DAMM v2, and more. We also upgraded the Meteora experience with Pool Discovery and Dynamic Terminal, making it easier for LPs to find opportunities, manage positions, and act with more clarity.

The product is now in the strongest place it has ever been.

To back this next phase of growth, we will commit $500,000 towards growth initiatives for Meteora, supported by a revision of DLMM protocol fees from 5% to 10%.

The goal is simple: bring more traders, more LPs, more volume and more fees into the Meteora ecosystem.

The Two Areas We Are Accelerating

Meteora’s mission has always been to build the best place for LPs to call home.

To do that, we need an environment for LPs to win.

Having the lowest protocol fees industry-wide plays a part, but the LP Army truly wins when they have deeper liquidity, higher volume and increased opportunities to LP.

Thus, this next phase will focus on two areas of growth:

  1. Growth of the LP Army - acquiring new LPs and traders, scaling education, and expanding our global community.

  2. Growth of product adoption - driving more usage of features like Limit Orders, bringing more trading activity to Meteora, and generating more trading volume for LPs.

Revision of DLMM Protocol Fees

To sustainably support this next phase of accelerated growth, we are revising the DLMM protocol fee from 5% to 10%.

At 5%, we had enough to keep building. At 10%, we have more room to invest aggressively into growth, distribution, education, referrals, trader acquisition, and community-led expansion.

To put it simply:

Before this change, LPs kept 95% of the fees generated.

After this change, LPs keep 90% of the fees generated.

The goal is to use the additional protocol fees to drive the two areas of growth above, and in return, drive additional value back to LPs over time.

Why We Are Doing This Now

We are making this change together with the launch of Quote Token Fees and Limit Orders because we believe this is the right moment to move towards the next stage.

Quote Token Fees will help make earning fees more attractive for many LPs, as more fees can be earned in quote assets like SOL or USDC instead of being split across both assets in the pool.

Limit Orders also add a new layer of utility to the DLMM, making the DLMM the premier venue for trading activity.

Together, these upgrades make Meteora more powerful for both LPs and traders, which is exactly why now is the right time to invest harder into growth.

How We Are Powering Growth

To drive this next phase, we are pledging $500K into Meteora’s next stage of growth, split across two funds:

  • A $250K team fund to drive team-led initiatives that grow product adoption and trading activity on Meteora.
  • A $250K community fund to drive community-led growth of the LP Army.

Each fund is built around one of the two growth areas above. The team fund focuses on product adoption and activity. The community fund focuses on scaling the LP Army.

We will share more updates as these initiatives roll out, including where the funds are directed to, our learnings from each initiative, and how these efforts will help to drive more activity back to Meteora.

The Team-Led Fund: Driving Product Adoption

The first initiative of the $250K team fund will focus on driving more usage of Limit Orders through distribution incentives across the community and broader Solana ecosystem.

When more traders adopt Meteora’s Limit Orders, the more trading activity flows into DLMM pools, and the more volume flows to LPs. The first initiative is designed to accelerate this loop.

The second team-led initiative will be a major project: Referral Staking.

Referral Staking is designed to help Meteora grow by aligning $MET and the community around bringing new users into the protocol.

This will allow users to stake $MET to generate referral codes and earn from the activity they bring to Meteora. This is our first step towards connecting $MET more directly with platform growth and product usage.

Beyond these, the team fund will continue to invest in:

  • Working with trading platforms, communities, and creators to onboard more traders and trading volume into Meteora
  • Running additional initiatives and incentives to drive user acquisition
  • Driving more attention toward LPing as a real strategy for traders

The Community Fund: Scaling The LP Army

The $250K community fund will be driven by our LP Army leads — HeavyMetalCook, Alex, and Mario — across the three verticals of the LP Army:

  • Education, led by HeavyMetalCook — scaling LP Academy, onboarding flows, and educational content that converts traders into LPs.
  • Developer community, led by Alex — building out the developer community around Meteora and supporting builders shipping on top of our protocol.
  • Global distribution, led by Mario — extending the LP Army’s reach across social channels and supporting global community leads driving local onboarding.

This is the LP Army’s fund. The goal is to give our leads the budget and resources to scale the community-led engine that has gotten Meteora this far.

Our Commitment To LPs

We understand that protocol fees directly affect LPs, and we do not take this lightly.

We believe 10% gives Meteora the right balance: enough room to fund accelerated growth, while keeping the economics strongly aligned with LPs.

Our focus remains the same:

  • to help LPs discover better opportunities.
  • to help LPs manage positions better.
  • to help LPs earn more through more volume, better tools, and a stronger ecosystem around Meteora.

In the last 6 months, we focused heavily on building the product foundation.

Now, we are entering the next phase: growing Meteora, growing the LP Army, and bringing more traders into the world of LPing.

The LP Army has always been Meteora’s greatest strength.

Now it’s time to expand that strength and grow the pie.

4 Likes
2

All that money you made during the bull run but you are increasing protocol fees to 10%? lmao. Not only that all the pledges are completely wild and funded by your users.

Truly disappointed in what Meteora has become. Soju & friends are the worst but this is what happens when old crypto people join new projects.

Community initiative is literally the same stuff you’ve been doing. What are you gonna do another $500 or $1k pool prize while you pay urself way more ? But community right lol?

Orca or Raydium will likely take over.

3

I hear the concern. But the point of the 10% protocol fee is not to dress up the same old things as “community initiatives”.

The point is to give Meteora more ammunition to grow the protocol properly: stronger referral incentives, better LP programs, better product, better education, and more ways to bring in real users, volume, and fees. We are doing this because we believe Meteora is now in a position to grow much harder, and we want the protocol to have the resources to do that sustainably.

We will be sharing more clearly what is being funded, how it ties back to LPs and users, and what the plan is from here.

BTW you can criticize the decision, but the people here are working hard to build something meaningful for Meteora and its community. So let’s stay constructive. Thank you!

4

Hi Zen,

I don’t think it’s fair to penalize all Meteora users and reduce their earnings. In my opinion, this isn’t a benefit for the LP Army it’s more of a drawback. If the goal is to run contests and reward winners instead of supporting the entire community, I don’t see the point.

It’s not like LPing is easier these days it’s the opposite. It’s getting harder and harder, and now you’re adding another layer of difficulty.

In my view, making it easier for current users to profit would be the best way to attract new users. But that’s just my opinion.

Congratulations to Alex, Mario, and HeavyMetal I’m sure they’ll do their best. I’m not questioning their work, and this message is not a personal attack on anyone (including you, Zen).

That said, I would have preferred spreading your expenses over time to fund this without impacting current users.

Honestly, as a community member, and daily Meteora user and someone with a significant MET bag, I would have much rather accepted the fee increase from 5% to 10% if you had told us you were facing financial difficulties or struggling to break even. Right now, it feels like a disguised way to permanently increase fees…

Let’s just say the referral staking doesn’t excite me either, but maybe other MET holders will be happy with this announcement… I feel like, as a met holder, it’s better to have nothing than that , I get the feeling that people who have a community and have sold their MET will be happy to be able to easily have more on it to resell, I hope I’m wrong…

So here’s my question, Zen: If the goal is to fund these 500k with the fee increase from 5% to 10%, will we go back to 5% for Meteora users once the funding is secured?

5

One more thing Zen, a request this time. Since you’ve increased the fees, the LP Army would like you to bring back the bins master or provide us with a tool to create a pool with custom bins for tokens that don’t have a pool yet. This would allow us to collect fees sooner and help Meteora generate revenue sooner. Please consider it. Thank you.

6

Glad you guys are adding more utility to MET.
Personally I’d love to see staking MET to reduce the DLMM fee also. Another possible alignment.

7

Hey, thank you for the thoughtful response. I really appreciate how you framed this, and I know it comes from someone who genuinely uses Meteora and cares about where we are headed.

I hear you on the concern that this feels like it reduces earnings for current LPs, especially when LPing is already getting harder. That is exactly why we need to make sure the fee increase becomes net positive for LPs over time.

The way we are thinking about it is this, growth means driving more volume, more LPs, and better quality pools and tokens to Meteora. If we do that well, the pie grows for everyone, and LPs should benefit from deeper activity, more opportunities, and more fees in the long run.

On the 500k, this is the first concrete commitment, not the full extent of what the fee increase is for. The additional 5% is meant to sustainably fund future growth initiatives, referrals, LP programs, education, product improvements, and other efforts that bring more real users and volume back to Meteora.

So to answer your question directly, the current plan is not to go back to 5% once the initial 500k is funded. The goal is to use the additional protocol revenue as long term growth ammunition for Meteora.

We will commit to making clear updates along the way, so everyone can see what is being funded, what progress is being made, and how this is meant to benefit LPs and users over time.

8

Yes, we are excited to explore more ways for MET to create stronger alignment across the protocol.

Referral staking is the first utility we are testing, and we want to see how the community responds before layering on more.

Reducing DLMM fees for MET stakers is definitely an interesting direction as well, especially if it helps active LPs and users directly. Please keep the suggestions coming!

9

Thank you for your detailed response.

I hope you’re right, and even though it seems very challenging, I hope that you and the team will manage to increase the volume on the tokens. All I can do now is wish you the best of luck and hope that the liquidity pools thrive as much as possible in the future.

Thanks again for the clear answer regarding the likely permanent nature of the fee increase. It’s good to have that transparency.

Keep up the work, good luck.

PS: Don’t forget to check out my second post :slightly_smiling_face: