Meteora Proposes Changes to MET Token Allocation

Meteora, the popular decentralized exchange on Solana, has proposed two adjustments for MET token allocation.

According to Meteora’s March 20 post on X, these changes aim to:

• Make liquidity provider rewards fairer,
• Support new token launches,
• Ensure long-term incentives for the team.

Proposal One: Revising the LP Stimulus Plan

Initially, 10% of the MET supply was designated for liquidity provider rewards, but because the program has exceeded its expected end date of December 2024, Meteora proposes increasing this to 15%. This increase ensures that both early and new liquidity providers (LPs) receive rewards without diminishing the token’s value.

> The first two proposals are live on https://t.co/OeTKWfH27W.
> These proposals tackle key community concerns regarding the LP Stimulus Plan, M3M3, and more.
> Watch the community call to see @0xSoju & @0xmiir discuss these proposals live.
> — Meteora (@MeteoraAG) March 20, 2025

Under the revised plan, early contributors will get 2% of MET, while all LPs will equally share 8%. The previous points multiplier system is replaced with this.

Additionally, an extra 3% of MET will be allocated to Launch Pools and Launch Pads, avoiding reward dilution for retail LPs.

Proposal Two: Team Allocation

The second proposal allocates 20% of the MET supply to the team, with a six-year vesting period to promote long-term commitment. Of this, 2% will be distributed to M3M3 token holders, associated with Meteora’s stake-to-earn platform, where users earn fee rewards from locked liquidity pools.

This strategy comes after the mismanagement of M3M3 by previous creators that caused investor losses. To ensure fairness, distributions will be based on two snapshots, blocking wallets linked to dubious activities.

Meteora’s Rapid Growth

Meteora has seen substantial growth recently. Based on DeFiLlama data, its trading volume rose 33 times, from $990 million in December 2024 to $33 billion in January 2025. With a 9% market share, Meteora is ranked fourth among DEXs by trading volume and collected $195 million in monthly fees in February, even amidst a broader DEX market downturn.

However, Meteora faces potential challenges ahead as Burwick Law, a New York law firm, filed a class-action lawsuit on March 13, alleging that they defrauded retail traders and misled investors regarding liquidity manipulation during the LIBRA token launch.

Read more: DEXs must shift their focus toward revenue generation | Opinion