MegaETH Unveils Token Buyback and TGE Plan

MegaETH, the real-time blockchain and Ethereum Layer 2, is launching its mainnet on Feb. 9, but the token generation event (TGE) will be dependent on network performance milestones.

The MegaLabs team has defined three key performance indicators (KPIs), and at least one of these must be met for the TGE to proceed. The chain must either establish a baseline of $500 million in USDM circulating, see 10 “mafia mainnet”- aligned apps deployed with more than 100,000 transactions across at least 25,000 wallets, or host three apps that generate at least $50,000 in daily fees for 30 days.

Once the token is circulating, MegaETH will use priority fees from its proximity markets and yield from its native stablecoin, USDM, for MEGA token buybacks.

In an article, MegaETH co-founder Shuyao Kong said, “The largest issue that’s faced our industry over the past few years was a simple question: why does a token need to exist? Equity has acted as king, with every successful story over the past few years, barring hyperliquid, having some variation of equity.”

The community-focused approach has been well received, but pre-market derivatives still price MEGA at just a $1.3 billion fully diluted valuation, only 40% higher than its initial coin offering (ICO) price in October.

This comes just days after Ethereum cofounder Vitalik Buterin said the current Ethereum Layer 2 landscape “makes no sense” and stated that Layer 2’s must offer something completely unique outside of Ethereum scaling.