Meteora Proposes Changes to MET Token Allocation to Enhance Fairness and Sustainability

Meteora, a leading decentralized exchange (DEX) on the Solana blockchain, has introduced two key proposals aimed at optimizing the allocation of its MET token. These adjustments are designed to create a more equitable reward system for liquidity providers (LPs), support new token launches, and ensure long-term incentives for the development team.

Proposal 1: Adjustments to the LP Stimulus Plan

The first proposal focuses on revising the Liquidity Provider (LP) Stimulus Plan. Initially, 10% of the MET token supply was allocated to reward liquidity providers. However, with the program now running beyond its original December 2024 timeframe, Meteora has proposed increasing this allocation to 15%. This change aims to sustain rewards for both early and new LPs while preventing token devaluation.

Under the updated plan, early contributors will receive 2% of the MET token supply, while 8% will be distributed equally among all LPs. Additionally, the original points multiplier system will be replaced to simplify the reward structure. To support new token launches and protect retail LPs from reward dilution, an extra 3% of MET will be directed to Launch Pools and Launch Pads.

Proposal 2: Long-Term Team Incentives

The second proposal addresses MET token allocation for the Meteora team. The exchange plans to allocate 20% of the MET supply to its team members, with a six-year vesting schedule to promote long-term commitment and alignment with Meteora’s growth goals. As part of this allocation, 2% of the MET supply will go to M3M3 token holders.

M3M3 is Meteora’s stake-to-earn platform, enabling users to earn fee rewards from permanently locked liquidity pools. This adjustment follows the mismanagement of M3M3 by its original creators, which resulted in investor losses. To ensure fairness, the distribution will be based on two snapshots of wallet data, and suspicious wallets linked to questionable activity will be excluded.

Meteora’s Rapid Growth and Market Impact

Meteora has seen significant growth in recent months, positioning itself among the top decentralized exchanges. According to recent data, the platform’s trading volume surged from $990 million in December 2024 to $33 billion in January 2025—a 33x increase. As of now, Meteora holds a 9% market share and ranks fourth among DEXs by trading volume.

In February 2025, despite the broader DEX market facing a downturn, Meteora generated $195 million in monthly fees, showcasing its resilience and growing user base. This growth highlights the platform’s strong adoption and its ability to provide value to its users and liquidity providers.

Legal Challenges Ahead

Despite its impressive achievements, Meteora is currently dealing with legal challenges that could impact its future. A class-action lawsuit was filed against Meteora, KIP Protocol, and Kelsier Ventures on March 13, 2025, by Burwick Law, a New York-based firm. The lawsuit alleges that these entities defrauded retail traders and misled investors by manipulating liquidity during the LIBRA token launch.

These legal issues have raised concerns within the community, but Meteora’s proactive steps to enhance its tokenomics and reward structures may help restore trust and ensure sustainable growth.

Key Takeaways for Investors

For those interested in the cryptocurrency market and decentralized finance, Meteora’s proposals offer several insights:

  • Equitable Rewards: The revised LP Stimulus Plan aims to create a fairer distribution of rewards for both early and new liquidity providers.
  • Long-Term Commitment: Allocating MET tokens to the team with a six-year vesting period ensures alignment with the platform’s long-term goals.
  • Growth Potential: Despite legal challenges, Meteora’s rapid growth and increasing market share highlight its potential as a key player in the DEX space.

These developments underscore the importance of transparent governance and sustainable practices in the evolving world of decentralized finance. Investors and crypto enthusiasts should closely monitor Meteora’s progress as it navigates both opportunities and challenges in the months ahead.

Post Views: 1