Meteora, a DeFi platform on Solana (SOL), has proposed dedicating 25% of its MET token supply to a Liquidity Rewards and Token Generation Event Reserve. The community is mostly positive about the proposal but has concerns about having enough liquidity at the start.

The plan, shared on Meteora's governance forum, includes a 20% allocation for a Liquidity Rewards Reserve. This reserve will reward liquidity providers for two years post-TGE to attract and retain liquidity. Additionally, a 5% allocation is set aside for the TGE Reserve, intended for initial liquidity provision and market-making for the event.

Some users feel that a 5% allocation for the TGE Reserve might be insufficient, given the significant circulating supply on day one. They stress the importance of ample liquidity at the TGE to support a strong start.

Meteora has previously introduced proposals to adjust its token distribution strategy, including increasing LP rewards and allocating tokens to Launch Pools and Pads. Another proposal suggests assigning 20% of the MET supply to the Team Treasury, with a vesting period of six years starting from the TGE.

The platform has seen a surge in trader activity, with DEX trading volume rising by approximately 52.53% from April to the present. Meteora has become the third-largest chain by fees, generating significant revenue. Despite this success, the platform is facing a class-action lawsuit related to the LIBRA token scandal, which led to the resignation of its co-founder amid insider trading allegations.