We had agreat turn out at our last community townhall where we kicked off discussions for our Meteora Stimulus Proposals
To recap, the goals for these Stimulus Proposals are the following:
- Drive liquidity on Meteora and grow Solana’s TVL
- Build a strong base of MET stakeholders.
Additionally, the MET token will not be liquid initially, so we will use a point system to track both LP and DAO contributions. Meteora will have a separate MET liquidity event when the conditions are right.
Here are the topics/questions we covered:
10% LP Stimulus Proposal
Should we reward existing LPs ahead of the StimulusPackage?
Most encouragingly, people have indicated that people are LPing in Meteora because of the value it brings and not in hopes of an airdrop and that it would to be good to focus incentives on growth.
We do appreciate early supporters of Meteora tho, so, one idea that was brought up was giving existing LPs a multiplier boost on their points. And adding multipliers for earlier LPs when we launch the program.
What liquidity should we incentivize?
Initially the community wanted to have the DAO vote on which pools. But it was pointed out that this can be a bottle neck if more and more tokens launch their liquidity on the DLMM. If we can find a good way to later remove points from LPs and pools that engage in wash trading or are trying to the game the system, the community agreed that allowing any liquidity to earn points would be a good idea.
How do we allocate the 10%?
One important point that people brought up is that 10% is a lot but most people don’t have a sense of how large that is in a point system. The thought process for most people is if two LP opportunities have the same yield but one has points they will choose the points. So the community was recommending that we allocate a smaller portion for the point system and then use the majority when the token is liquid and people can see an APY on the reward emissions.
A related topic we only briefly covered is how to measure LP contributions. While TVL is the metric, TVL without volume is not useful. So scoring LPs on a combination of TVL and volume is important. One suggestion is to count every $1 of TVL but add multipliers the more volume that TVL brings. Someone also suggested using fees to weight the importance of volume. For example, stable liquidity brings a lot of volume but its fees are low, while Sol/USDC volume is riskier and thus has higher fees so can be weighted much higher.
How do we identify and distinguish long-term holders?
This is an important topic to discuss as we want to build a strong foundation of MET holders who believe in the long term success. So far the simplest idea is to give holders a choice to lock the token for a duration and give them a multiplier or bonus on the emissions they’d earn as an LP.
2% DAO Proposal
Forming a strong DAO that can tackle growing Solana’s TVL will be incredibly important, so structuring this proposal will be critical. We didn’t cover this topic as much, but, one idea shared was a distribution schedule to contributors over the course of the year. Q1: 1% Q2: 0.5% Q3: 0.25% Q4: 0.25% Left to tackle is how to allocate to the different contributors. At a high level, I think its important to reward community presence: consistency, quality, work.
For next steps, we will be creating draft proposals in discord so that more people can contribute asynchronously.
