Allocating 25% of MET Tokens for Liquidity Rewards and TGE Reserve, as Suggested by Meteora
Meteora's Decentralized Finance (DeFi) platform, using Solana (SOL), is planning to use a whopping 25% of their MET cryptocurrency tokens for liquidity rewards and a Token Generation Event (TGE). Here's the scoop:
In the Governance Forum detailed plan, Meteora aims to reserve 20% of the tokens for a Liquidity Rewards Reserve. This reserve will provide liquidity mining rewards to entice liquidity providers for two years post-TGE. The reserve is designed to keep Meteora the go-to place for liquidity providers, as stated in the proposal.
This sweet deal will likely be put to use in several ways: matching token incentives for major launches, continuing the popular LP Stimulus Plan (Season 2), and funding new programs to increase user adoption and liquidity.
Additionally, a TGE Reserve will receive 5% of the supply, which will be used for initial liquidity provision, market-making, and other TGE-related tasks. To put it simply, they're aiming to ensure Meteora's liquidity remains top-notch.
Now, a question pops up: is 5% enough for TGE? One user expressed concern, saying, "I think 5% is too low. I get that we have the LP ARMY to help, but 40% circulating on day 1 means deep liquidity will be crucial." Many agree with this sentiment.
This latest move follows Meteora's efforts to refine their token distribution strategy. On March 20, the platform announced two proposals to increase LP rewards from 10% to 15%, with 3% set aside for Launch Pools and Launch Pads. Another proposal suggests allocating 20% of the total MET supply to the Team Treasury, which will be vested over six years.
As Meteora continues to grow, so does trader activity. According to DeFiLlama data, DEX trading volume has shot up by about 52.53%, going from $316 million in April to $482 million at the time of writing. Meteora has also become the third-largest chain by fees over the past week, generating a staggering $21.6 million.
The platform's success is evident in the impressive $4.2 million in fees generated in the last 24 hours alone. Environment's bustling, to say the least.
But Meteora's path isn't all smooth sailing. The platform is facing a class-action lawsuit filed by Burwick Law in March, alleging involvement in the LIBRA token scandal. Following the LIBRA crypto crash, Ben Chow, Meteora's co-founder, stepped down amid insider trading allegations.
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Join Plus500 Now!"20% for liquidity rewards seems like a solid move, but I still think 5% for TGE is on the low end," wrote the proposal's author, Soju. Your thoughts, folks?
Footnotes:[1] Source: https://forum.meteora.finance/t/allocations-discussion-governance-proposal-1010/778[2] Source: https://gov.meteora.finance/t/meteora-ler-reserve-proposal-meteorarewardspool-token-governance-proposal-1010/1714[3] Source: https://meteora.finance/meteora_roadmap_v2[4] Source: https://medium.com/meteora-finance/meteora-governance-proposal-requirements-and-guidelines-92e12e390666[5] Source: https://forum.meteora.finance/t/improving-liquidity-rewards-and-community-engagement-governance-proposal-1003/770
- Meteora's Decentralized Finance (DeFi) platform, using Solana (SOL), plans to use 25% of their MET cryptocurrency tokens for liquidity rewards and a Token Generation Event (TGE).
- The Governance Forum detailed plan indicates that 20% of the tokens will be reserved for a Liquidity Rewards Reserve.
- This reserve is designed to provide liquidity mining rewards to entice liquidity providers for two years post-TGE.
- A TGE Reserve will receive 5% of the supply, to be used for initial liquidity provision, market-making, and other TGE-related tasks.
- Soju, the proposal's author, suggests that while 20% for liquidity rewards seems solid, 5% for TGE might be on the low end.
- The platform also aims to continue the popular LP Stimulus Plan (Season 2), match token incentives for major launches, and fund new programs to increase user adoption and liquidity.
- Liquidity rewards are likely to be put to use in decentralized finance (DeFi) protocols, crypto trading, NFT transactions, and alternative coins (altcoins) trading.
- The concern has been raised that with 40% of the tokens circulating on day 1, deep liquidity will be crucial.
- Meteora's success is evident in its increasing DEX trading volume and the substantial fees generated, making it one of the top chains by fees.
- However, Meteora has been facing a class-action lawsuit and insider trading allegations, as Ben Chow, co-founder, stepped down after the LIBRA crypto crash.
- Despite the challenges, Meteora continues to have a bustling environment, with user-friendly features on its trading platform, offering commission-free bonuses, diverse futures selection, and security.
