Meteora, a fast-growing decentralized exchange (DEX) on Solana, has released two new community proposals focused on revising the allocation of its MET token, aiming to create a more balanced incentive system for liquidity providers (LPs), support new token launches, and ensure long-term team alignment.
The proposals, shared on March 20 via Meteora’s official X account, come amid the platform’s rapid growth and rising influence in the DeFi space. According to Meteora, the changes are designed to address community feedback and prepare the protocol for its next phase of development.
“These proposals address key community concerns about the LP Stimulus Plan, M3M3, and more,” the project stated, encouraging users to participate in the governance process.
Proposal 1: Revamped Liquidity Provider Stimulus Plan
The first proposal focuses on adjusting the LP Stimulus Plan. Initially, 10% of the total MET supply was earmarked for rewarding liquidity providers. However, since the program has extended beyond its original December 2024 end date, Meteora now proposes increasing the allocation to 15%.
Under the new plan:
- 8% of MET will be distributed equally to all LPs.
- 2% will go specifically to early contributors.
- An additional 3% will support Launch Pools and Launch Pads to avoid reward dilution for retail LPs.
Meteora has also eliminated the original points multiplier system, replacing it with a more straightforward and inclusive model. The revised allocation aims to reward both early and newer LPs fairly while enhancing overall ecosystem engagement.
Proposal 2: Team and M3M3 Token Holder Allocation
The second proposal concerns long-term team incentives and the M3M3 stake-to-earn platform. Meteora suggests allocating 20% of the MET token supply to the team, with a six-year vesting schedule to ensure sustained commitment.
Notably, 2% of the MET supply within this allocation will be distributed to M3M3 token holders. M3M3 allows users to earn fees from permanently locked liquidity pools. The decision follows previous mismanagement by M3M3’s original creators, which resulted in significant losses for investors.
To maintain fairness, two on-chain snapshots will determine eligible M3M3 holders, and wallets linked to suspicious activity will be excluded from the distribution.
Rapid Growth and Legal Challenges
Meteora’s governance activity comes on the heels of exceptional platform growth. According to DeFiLlama, the exchange’s trading volume skyrocketed from $990 million in December 2024 to $33 billion in January 2025, a 33x increase. The platform now holds 9% of the total DEX market share and ranks fourth by trading volume, generating $195 million in monthly fees in February alone.
However, success hasn’t shielded Meteora from scrutiny. On March 13, New York-based Burwick Law filed a class-action lawsuit against Meteora, KIP Protocol, and Kelsier Ventures, alleging they manipulated liquidity and misled investors during the LIBRA token launch. The case could have significant implications for the project’s future.
Looking Ahead
The two MET token proposals are now live for community voting, as Meteora seeks to reinforce trust and realign incentives following both exponential growth and recent controversies. With greater governance transparency and community involvement, the platform aims to navigate the challenges ahead while continuing its rise in the DeFi ecosystem.
