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.
6 Likes
Good proposal, I support the 2% DAMM V2 allocation for Meteora users, as it fairly rewards early adopters taking on higher risks. Every Meteora product, including vaults and pools and more deserves token allocation to incentivize participation, enhance liquidity, and drive community growth. This strengthens DAMM V2’s ecosystem and aligns with Meteora’s mission to foster robust DeFi engagement.
3 Likes
Agree! I think DAMM users and Lp Army users should get a +2% allocation.
3 Likes
Good justification, I think team already preparing best way to reward every users that uses Meteora tools.
1 Like
Didnt the DAMM just come out ? Too recent, totally disagree.
You will get points just like DLMM but there is no specific allocation for that and should not be any imo.
3 Likes
You make a fair point — I agree that DAMMv2 deserves to be rewarded. But I think the proposal could benefit from deeper consideration beyond just the perceived risk or novelty of the tech.
Right now, the 2% allocation seems arbitrary, without a clear connection to what DAMMv2 LPs actually contribute to Meteora’s growth — whether that’s in terms of TVL, protocol fees, or market share. There’s little discussion of what Meteora stands to gain in return for this allocation, or what the cost basis is to the platform.
‘Higher risk’ is cited as a justification, but that’s subjective and varies depending on position size and strategy.
Shouldn’t the reward structure reflect the same principles applied to DLMM — where allocations are tied to productivity of TVL and its duration on the platform? That would create more alignment and a clearer rationale for how rewards are distributed.
4 Likes
just lp army or lp army private too?
1 Like
aptly said, there is no clear statistics to show thta daamv2 is generating so much compared to dlmm
1 Like