We propose allocating 2% of the DAMM V2 token supply to incentivize and support users participating in Meteora vaults and pools tied to DAMM V2.
This allocation is justified by the higher risk profile of DAMM V2 compared to DLMM. As a newer mechanism with fewer liquidity protections and less historical performance data, DAMM V2 carries more volatility and composability risk. Users who choose to engage with DAMM V2 are contributing early, facing greater uncertainty, and deserve proportional support.
Why This Matters
- DAMM V2 is higher risk than DLMM due to its newer architecture and exposure to broader market volatility.
- Early users on Meteora are helping to establish liquidity, usability, and trust in DAMM V2 across Solana.
- Incentivizing this activity encourages deeper engagement, improves utility, and aligns with the community’s growth strategy.
Conclusion
DAMM V2’s launch represents an important evolution of the protocol—but it comes with higher risk and demands stronger community participation to succeed. Approving this 2% allocation directly supports the users who are taking on that risk and helping prove DAMM V2’s value in the open market.
We ask the community to support this proposal and reward the early adopters who are helping DAMM V2 gain traction on Meteora.