Meteora, the Solana-based platform known for its dynamic liquidity pools, has been a go-to for meme token launches and trading. But their recent announcement of the $MET token generation event (TGE) on October 23rd has stirred up a storm in the community. A tweet from user @flooksta has gone viral, calling out what many see as lopsided tokenomics that prioritize old holders over the folks who've actually powered the platform's growth.

What's the Phoenix Rising Plan All About?

At the heart of this is Meteora's Phoenix Rising Plan, unveiled just days ago. The plan promises to "turn every Meteora stakeholder liquid" right at TGE, meaning no vesting cliffs or slow drips for most allocations—just straight-up tokens you can trade or hold. Tokenomics, for the uninitiated, refers to how a project's tokens are distributed, supplied, and vested to incentivize participation and growth.

Meteora boasts a high initial circulating supply of 48% at launch, which is way above peers like Jupiter's $JUP at 13.5%. The idea is to avoid those pesky low-float, high-FDV setups that lead to massive dumps post-launch. Instead, they're aiming for stability and real utility in DeFi.

But here's where it gets contentious: the breakdown of that supply.

Breaking Down the $MET Allocations

Looking at the tokenomics chart, the circulating 48% is split like this:

• Mercurial Stakeholders: 20% – These are holders of the old $MER token from Mercurial Finance, which Meteora evolved from. Fully unlocked at TGE.
• LP Stimulus Plan: 15% – For liquidity providers (LPs) who've risked billions in capital to make Meteora's pools thrive.
• Launchpads & Launchpool Ecosystem: 5% – Supporting partners in the ecosystem.
• Off-Chain Contributions: 2% – Rewarding external helpers.
• Jupiter Stakers: 3% – A nod to the Jupiter community.
• CEX & MM: 3% – For centralized exchanges and market makers.
• MS33 Stakeholders: 2% – Another legacy group.

The non-circulating 52% vests over six years:

• Team: 18% – Locked to ensure long-term commitment.
• Meteora Ecosystem Reserve: 34% – For future incentives.

Sounds fair on paper? Not to everyone.

The Community Backlash: @flooksta's Viral Critique

In his tweet, @flooksta didn't hold back: "Horrible $met tokenomics and very very disappointed in the team." He points out that Mercurial holders, who held a "dead token" for four years without contributing recently, get a whopping 20%—fully unlocked. That's more than the 15% for LPs, who he argues made Meteora what it is by risking their own money.

He also calls out the team for keeping quiet about the MER allocation for a year, only dropping details close to TGE. "More pocket money for team members and less to loyal community," he adds, even admitting he's "fudding my own bags" (spreading fear, uncertainty, and doubt about his own holdings) because it needed to be said.

Replies poured in, with some defending the team—noting the MER allocation was promised long ago and that the team is the only one with locks. Others piled on, accusing it of being an "insider-heavy" setup, especially since at the MER snapshot, a handful of wallets held most of the supply. One user highlighted that 10 wallets controlled 58% of MER, meaning a tiny group could snag over 11% of $MET unlocked day one.

Why This Matters for Meme Tokens on Solana

Meteora's pools are crucial for meme tokens, providing the liquidity that lets wild projects like dog-themed coins or viral cats moon or crash spectacularly. If LPs feel undervalued, it could ripple through the ecosystem—fewer providers means thinner liquidity, higher slippage, and tougher launches for new memes.

The plan introduces a "Liquidity Distributor" mechanism, where 10% of the circulating supply gets airdropped as liquidity positions instead of raw tokens. This lets recipients earn fees without selling, potentially bootstrapping $MET's market while onboarding more users to Meteora's tech. It's innovative, but if trust erodes, adoption might suffer.

Looking Ahead to TGE

With TGE just weeks away, the debate rages on X (formerly Twitter). Meteora's team has responded in threads, emphasizing their commitment to believers and inviting skeptics to exit gracefully. Whether this blows over or escalates could define $MET's trajectory.

If you're an LP or eyeing the airdrop, join the Meteora Discord for updates. In the fast-paced world of Solana DeFi, tokenomics can make or break a project—stay informed, and always DYOR (do your own research). What's your take on the allocations? Drop a comment below!