2. Formation Of An Expert DAO

We envision a Solana ecosystem buoyed by deep, expansive liquidity. To realize this, we’re launching the Meteora DAO with these 3 principles:

  1. To Leverage Expertise: We’re seeking community experts who understand Solana’s unique needs and can help guide and advocate for the MET DAO mission.

  2. To Empower LPs: Allowing LPs to own a significant stake in Meteora, ensuring alignment and stakeholder involvement.

  3. Promote Transparency & Confidence: Decentralized decision-making and 100% transparent MET tokenomics to bolster trust and openness.

In the short term, our focus is on utilizing MET effectively to bolster Meteora’s DLMM growth, energize participation in the DAO, and drive liquidity growth on Solana.

In the longer term, we want the MET DAO to become a major governing body for the ecosystem to come together to improve the long-term sustainability of liquidity protocol and providers.

DAO Formation

To kick off the DAO, 20% of MET will soon be distributed as ve-locked MET to MER stakeholders as per the Feb 2022 snapshot and calculations to give our stakeholders governance voting power.

The remaining 80% will remain under DAO governance. We will suggest early guidelines for how we believe the 80% can be leveraged for maximum benefit over the long run, but the DAO will have technical control of the tokens from day one. The only portion of the DAO that will be set aside from day 1 will be 10% for individual MER holders who have assets in FTX. This will be gradually released when there is a confirmed verifiable way of validating the MER holdings of individuals.

In addition, the DAO’s primary role will be to decide on key MET tokenomics, distributions, team incentives, and certain risk parameters for Meteora protocols, such as lending pool utilization thresholds for dynamic vaults.

Bringing Expertise Into The DAO

One of the most important (and oft neglected aspects of DAO formations) is to ensure that the people who are the most connected to the actual state of liquidity and ecosystem have the necessary incentives to participate.

We intend to propose allocating 2% of MET for DAO contributors when we kick things off to build a strong foundation for the DAO when it launches. For our DAO to be effective, we need experts who understand not only how Meteora works, but understand what Solana needs and how other projects and protocols work.

The DAO will need experts to review and strengthen proposals, to help the DAO make good decisions, and advocate for Meteora in the ecosystem. In many cases, the best DAO contributors are core community members in many protocols in the ecosystem and it will be important to bring the right incentives to align these great people to work together to grow liquidity for Solana.

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