MegaETH Foundation will regularly purchase MEGA tokens using revenue from its stablecoin USDM, The Block reported on Thursday.
The announcement is one of several made ahead of the mainnet launch, and shows MegaETH moving to build a revenue-based token ecosystem, The Block reported. The foundation said, "USDM is like blood in the MegaETH ecosystem," adding, "As applications grow, demand for USDM increases and MEGA buybacks also rise."
USDM is a stablecoin jointly designed by MegaLabs and Ethena, and uses USDtb issued by Ethena as its underlying asset. Because USDtb is based on BlackRock's tokenised fund BUIDL, USDM holders can also earn returns through it.
MEGA is issued separately from the mainnet, and more than half of its total supply will be released to the market only when “performance-based KPIs” are met.
After the mainnet launch, MegaETH also plans to run a beta “proximity markets” in which high-frequency traders and market makers use MEGA to secure “sequencer adjacent locations” through an auction.
Chi-gyu Hwang
delight@d-today.co.kr