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Meteora to Reward JUP Stakers With 3% of TGE in Liquidity NFTs
Meteora has set the Solana community abuzz with a bold and controversial proposal: to allocate 3% of its Token Generation Event (TGE) fund to Jupiter’s JUP stakers, not in tokens, but as Liquidity Position NFTs.
A Liquidity-First Approach
The plan, revealed ahead of Meteora’s October TGE, aims to seed liquidity from day one without inflating the immediate MET token supply. Instead of distributing tokens directly, the 3% allocation would fund liquidity in a Single-Sided DAMM V2 pool, with NFT-based positions distributed to JUP stakers. Allocation would be determined by factors such as time-weighted staking, amount staked, and voting activity.
By creating MET/USDC liquidity at launch, Meteora hopes to avoid early sell pressure and ensure a smoother listing. As the team stressed, “no additional tokens circulating will be added due to this proposal,” highlighting its liquidity-first philosophy.
Calculating the Rewards
According to Meteora Co-Lead Soju, with roughly 600 million JUP staked, the 3% allocation would translate to 30 million MET tokens, or about 0.05 MET per staked JUP. While the per-token payout may seem small, the aggregated impact could create meaningful incentives for users to become liquidity providers.
Community members on X arrived at similar figures, suggesting the model is consistent. Still, Soju acknowledged that debates about fairness are inevitable.
Benefits and Risks
The proposal could strengthen ties between Meteora and Jupiter, reward long-term stakers, and reduce immediate sell-offs compared to standard airdrops. But critics warn of concentration risks, with concerns that large wallets or an “LP Army” might dominate allocations.
Soju also noted that transparency around tokenomics will be essential. With up to 25% of the supply reserved for liquidity/TGE, the circulating supply at launch remains a key question. Without clear mechanics for NFT vesting, per-address caps, and withdrawal limits, the plan could risk undermining its intended stability.
As October approaches, the debate continues: will this strategy bridge two major Solana communities, or fuel further division over fairness and distribution?
