Proposal: Vested Liquidity Removal for Token Launches on Meteora Vault

Proposals
1

Summary

While we all strive for decentralization, centralized UI entities like Meteora must take accountability for what happens through their platform. It should not serve as a tool for bad-faith actors to execute their scams but rather as a safeguard that protects users from exploitation. The focus should be on defending retail investors.

This proposal introduces mandatory vested liquidity removal for token launches utilizing the Meteora Vault system. The goal is to prevent instant rug pulls by ensuring that liquidity is withdrawn gradually over time, allowing the community to react accordingly.

If a coin launch is honest and legitimate, the project’s creators won’t mind keeping liquidity locked for a longer period, as they are committed to its long-term success. Only those with bad intentions would insist on instant liquidity removal, as their goal is to cash out quickly before the community catches on.

Why This Matters

  • Stops instant rug pulls: Prevents high-profile figures (presidents, celebrities, politicians) from immediately draining liquidity, leaving retail investors with worthless tokens.
  • Forces transparency: Gradual liquidity removal allows the community to monitor and decide whether to stay in or exit.
  • Creates a choice: If these figures refuse to comply, they must launch their tokens manually, exposing them to snipers and volatility, making it harder to control distribution.

Proposed Mechanism

  • Liquidity Removal is Time-Locked: Instead of allowing instant withdrawal, liquidity must be vested over a set period (e.g., 6-12 months).
  • Smart Contract-Enforced Rules: Liquidity providers (especially project creators) cannot remove more than a fixed percentage per month (e.g., 5-10% per month).
  • Public Transparency: A dashboard displays liquidity movements, alerting users when high-profile tokens start withdrawing funds.

Expected Outcomes

:white_check_mark: Reduces risk of celebrity/government-backed scams.
:white_check_mark: Encourages fairer launches with real commitment from creators.
:white_check_mark: Forces high-profile figures to choose between transparency or sniper risks.

If they refuse to follow these rules, they will have to launch manually, exposing themselves to snipers and uncontrolled market conditions—a deterrent against bad actors.

This ensures that Meteora does not facilitate quick cash grabs and protects retail investors from being exploited.

9 Likes
2

Good idea, I believe there should be many ways to launch tokens on Meteora.

1 Like
3

Agree with this idea. To eliminate the suspicion of insider trading, token issuance should be automated, and the withdrawal of certain tokens should be restricted. The entire industry’s liquidity is currently facing a crisis.

1 Like
4

This is an excellent idea and should form the foundation of the token launch. A strong and transparent project with sound tokenomics has no reason to worry about liquidity being locked up temporarily and publicly disclosed

5

It is necessary to update features to prevent rug pulls for new coin launches, some might argue that tools and platforms are neutral. However, if that’s the case, we will see more and more liquidity being drained, leaving behind a wreckage for our industry. This trend is neither healthy nor sustainable.