Meteora, a well-known decentralized exchange operating on the Solana blockchain, has introduced two proposals aimed at modifying the allocation of its MET token.
As noted in a post on March 20, the purpose of these proposed changes is to enhance the fairness of rewards for liquidity providers, bolster new token launches, and ensure long-term incentives for the team. The first proposal involves a revision to the LP Stimulus Plan.
Initially, 10% of the MET supply was designated to reward liquidity providers. However, since this initiative has exceeded its anticipated end date of December 2024, Meteora seeks to increase this allocation to 15%. This modification ensures that both early and new liquidity providers can benefit from rewards without negatively impacting token value.
Under the updated plan, early contributors will receive 2% of the MET supply, while the remaining 8% will be evenly distributed among all liquidity providers. This replaces the previous points multiplier system. Additionally, 3% of MET will be allocated to Launch Pools and Launch Pads to prevent reward dilution for retail investors.
The second proposal is centered on the team’s compensation. Meteora intends to set aside 20% of the MET supply for its team members, coupled with a six-year vesting schedule to promote long-term dedication. Within this allocation, 2% will be designated for M3M3 token holders. M3M3 is Meteora’s stake-to-earn platform, enabling users to earn rewards from permanently locked liquidity pools.
This decision comes in response to previous mismanagement of the M3M3 platform by its original creators, which resulted in losses for investors. To ensure fairness, the distribution process will utilize two snapshots, and wallets associated with suspicious activities will be excluded.
Meteora has witnessed significant growth over recent months. According to data from DeFiLlama, the trading volume on the platform skyrocketed from $990 million in December 2024 to $33 billion in January 2025.
With this rapid expansion, Meteora now commands a 9% market share and ranks fourth among decentralized exchanges in terms of trading volume. While the overall DEX market faced a downturn, Meteora generated $195 million in monthly fees in February.
Nevertheless, despite its accomplishments, Meteora is currently entangled in legal challenges that could affect its trajectory. On March 13, Burwick Law, a legal firm based in New York, initiated a class-action lawsuit against Meteora, KIP Protocol, and Kelsier Ventures. The lawsuit alleges that these entities defrauded retail traders and misled investors by manipulating liquidity during the launch of the LIBRA token.