MegaETH Provides Tokenomics Update Days Ahead of Mainnet

Ahead of its official mainnet on Monday, the MegaETH team provided a tokenomics updates, which detailed future MEGA utilities and a token buyback program, but provided an uncertain timeline for TGE.

What's the Scoop?

• Token Utility: According to MegaETH founder Shuyao Kong, "HFTs, and the like will spend MEGA to colocate with the MegaETH sequencer." MegaETH represents these so-called proximity markets as, "a bidding system denominated in MEGA, [that allows] market makers and apps to claim sequencer-adjacent space and reduce e2e latency to as low as <1ms."
• Buyback Program: All USDM revenues generated by the MegaETH foundation to go towards buying back and accumulating MEGA. This dynamic will allow MEGA buyback pressure to increase with USDM supply, a potentially positive ecosystem flywheel.
• Delayed TGE: Both of the above programs require a token, however, and MegaETH's TGE is contingent on the achievement of any one of three key performane indicators: (1) USDM supply reaches a 30-day average of $500M and at least 25% is deposited into verified, non-custodial smart contracts across key applications; (2) ten "MegaMaffia" applications must be fully deployed; or (3) three applications achieve >$50k in daily fees.