Reborn from the ashes? Disclosure of the Meteora Token MET economic model: 48% TGE directly unlocked, can the innovative LP Airdrop resolve market manipulation controversies?

The Solana ecosystem DEX Meteora (formerly Mercurial Finance) announced that it will officially launch its native token MET on October 23, naming its tokenomics "Phoenix Nirvana." In this plan, up to 48% of the tokens will be distributed and directly unlocked at TGE, with 10% being distributed in the form of liquidity positions (LP) rather than traditional Airdrop, aiming to provide support for initial liquidity and allow users to earn transaction fees. The project, which started in 2021 as the Solana "princelings," has successfully transformed through the DLMM model and TRUMP token volume miracles after the FTX collapse and a big dump in TVL, but its co-founder was forced to resign due to a market manipulation scandal, making the issuance of the MET token a key step in rebuilding confidence.

Nearly two years late MET tokenomics: 48% immediate unlock and unique LP position allocation

The distribution plan of the MET Token reflects the project's emphasis on historical stakeholders, community incentives, and initial Liquidity, with nearly half of its total supply entering circulation at the Token Generation Event (TGE).

· Distribution structure details:

· Mercurial stakeholders: 20%, targeting users of the project's predecessor Mercurial Finance.

· Meteora User LP Incentive: 15%, allocated through the liquidity provider (LP) incentive program.

· Launchpad/Launchpool ecosystem: 3%, incentivizing project parties to use Meteora services.

· Jupiter Staking Incentive: 3%, for staking users of the Solana giant Jupiter.

· M3M3 Stakeholders: 2%, targeting users of platforms previously involved in the Meme coin scandal.

· Off-chain contributors: 2%.

· Market Makers/CEX: 3%, including centralized exchanges, market makers, etc.

· Team and reserve lock-up: The team (18%) and Meteora reserves (34%) make up a total of 52%, which will be unlocked linearly over 6 years, reflecting a commitment to the long-term development of the project.

· Innovative distribution mechanism: The biggest highlight of the MET token lies in its distribution method. Although a total of 48% of the tokens will be directly unlocked at TGE, 10% of the tokens will not be distributed in the usual Airdrop form, but will be directly allocated to users as liquidity positions. The project team stated that this move can not only avoid providing additional tokens for initial liquidity but also allow users to enjoy fee income instantly while obtaining the tokens.

From the Glory of Mercurial Finance to the Low of FTX's Big Dump

Meteora's predecessor, Mercurial Finance, was once a prominent "princeling" in the Solana ecosystem, but suffered a heavy blow during the bear market.

· The founding team has a strong background: The founding team of Mercurial is also the creator of the DEX aggregator Jupiter on Solana. The two co-founders, Ben Zhow and the anonymous meow, both have rich experience in product design, DeFi, and blockchain consulting, possessing strong industry resources.

· DeFi star protocol: Mercurial was established in 2021 and is positioned as a stablecoin asset management protocol on Solana, aiming to become the Curve on Solana. Its core technology includes flexible configuration that does not require a 1:1 ratio of LP Tokens, as well as improving LP yields through a dynamic fee mechanism and deploying assets to external lending protocols.

· Institutional Endorsements and Highlights: Mercurial early received investments from Alameda Research, the Solana ecosystem fund, and mainstream CEXs. FTX founder Sam Bankman-Fried personally endorsed it. In August 2021, Mercurial's TVL accounted for nearly 10% of Solana's overall TVL.

· Heavy blow associated with FTX: After the bear market in 2022 and the FTX collapse, Mercurial suffered greatly due to its close ties, with TVL remaining sluggish. By October 2023, its TVL once fell below 10 million USD, less than 5% of its peak.

Transformation of DEX: Explosive Growth of DLMM Model and TRUMP Event

In search of a breakthrough, Mercurial announced a rebranding to Meteora at the end of 2022 and gradually established a DEX strategy centered around DLMM.

· Brand reshaping and strategic focus shift: In December 2022, Mercurial announced the Meteora plan, initially focusing on Dynamic Vaults (yield layer). However, after experiencing a prolonged downturn in 2023, Meteora shifted its strategic focus to DEX by the end of 2023, launching a liquidity incentive program and beginning to cover non-stablecoin asset pools.

· Innovative AMM Model DLMM: Meteora has launched the DLMM (Dynamic Liquidity Market Maker) model, referencing Trader Joe. This model divides liquidity into multiple fixed-price "Bins", enabling zero slippage trading within the Bins. This highly customized liquidity solution, including various liquidity addition modes such as Spot, Curve, and Bid Ask, makes it the preferred choice for many new projects to establish initial liquidity.

· The "lifeline" of TRUMP Token: In January 2025, the TRUMP Token team chose Meteora as a partner. In the following days of festivities, the volume of Meteora reached $7.6 billion in a single day on January 18, accounting for 20% of the total DEX trading volume on Solana. Its TVL surged nearly threefold within three days, reaching $1.688 billion. After this event, Meteora quickly gained popularity and became capable of competing with platforms like Raydium and Orca.

Market Manipulation Scandal and Legal Proceedings: The Shadow of the Resignation of Lianchuang

The success brought by TRUMP was overshadowed by the subsequent scandal of meme coin market manipulation, directly leading the project into a trust crisis.

· Scandal exposed: In the "celebrity Meme coin craze" triggered by the TRUMP effect, tokens like MELANIA and LIBRA have experienced a big dump. DefiTuna founder Moty revealed that Meteora colluded with Kelsier Ventures to manipulate the prices of Meme tokens for profit through the Meme coin Launchpad M3M3 platform, potentially totaling up to $200 million.

· Co-founder resignation and lawyer dispute: Although co-founder Ben Zhow denied involvement in price manipulation, the video released by Moty "substantiated" the collusion facts, leading to Ben Zhow being forced to resign. Another co-founder, meow, announced that they would hire the law firm Fenwick & West for the investigation, but that firm was previously the general legal counsel for FTX and has been sued for allegedly aiding in fraud, intensifying market concerns.

· Entangled in class-action lawsuits: Starting in March, two law firms began representing losing investors in a class-action lawsuit against Meteora and its founders, accusing them of manipulating the issuance and price of the M3M3 Token, resulting in a total loss of 69 million dollars for investors.

Conclusion: Can the New Token Reshape Trust

The issuance of the MET Token is a key step for Meteora in bidding farewell to the past and reshaping its image. The design of the tokenomics includes special allocations for stakeholders of Mercurial and M3M3, as well as the innovative LP position airdrop method, reflecting the project team's efforts to appease historical users and establish healthy initial liquidity. However, the market manipulation allegations and legal lawsuits surrounding Meteora have not subsided. The launch of the token may bring in a wave of new traffic and attention, but to truly achieve "phoenix nirvana", the core lies in how to rebuild trust between the community and investors through governance transparency and project operations.

This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.