The MegaETH Foundation has outlined a new strategy to support its native MEGA token, announcing plans to use revenue generated by its USDM stablecoin to fund ongoing token buybacks.
In a statement shared Friday, the foundation said income earned from USDM will be used to routinely purchase MEGA tokens from the market. The approach is designed to tie the growth of the ecosystem directly to demand for the token. According to the foundation, USDM plays a central role across the network, with all flagship applications on MegaETH built to support the stablecoin.
“USDm is the lifeblood of the MegaETH ecosystem,” the foundation wrote, noting that expansion in onchain activity should naturally translate into higher stablecoin usage and, in turn, increased buyback activity.
Buybacks, Proximity Markets and TGE
— MegaETH (@megaeth) February 6, 2026
The MEGA Token will be integral to the MegaETH ecosystem.
Once launched it will have 2 immediate core functions:
1. $USDM yield will purchase MEGA
2. Entities bid with MEGA to colocate with the sequencer (Proximity Markets)
We've set KPIs… pic.twitter.com/CSLG1rRUAt
How USDM fits into the MegaETH ecosystem
USDM was developed through a partnership between MegaLabs and Ethena. The stablecoin earns yield through its backing asset, USDtb, an Ethena-issued token supported by BlackRock’s BUIDL fund. That yield forms the basis of the revenue stream now earmarked for MEGA accumulation.
The announcement comes as MegaETH prepares for its long-anticipated mainnet launch, scheduled for Monday. In a departure from typical crypto rollouts, the project has chosen to separate its token launch from the mainnet debut, spacing out major milestones to emphasize performance and adoption over speculation.
— brother bing / 饼兄 Σ: (@hotpot_dao) February 6, 2026
Token supply tied to measurable performance
In recent weeks, MegaETH has released a series of pre-mainnet updates focused on token economics. Last week, the foundation said more than half of MEGA’s total supply would only be released once specific performance benchmarks are met.
On Friday, it added further clarity by identifying three independent metrics that can trigger the MEGA token generation event (TGE). These include maintaining a 30-day time-weighted USDM supply of at least $500 million, launching 10 applications on MegaETH, or having at least three applications generate $50,000 or more in fees for 30 consecutive days. Additional conditions apply to each metric.
Once any one of these benchmarks is achieved, the foundation said the MEGA TGE will occur seven days later. All progress toward these targets will be publicly visible through dedicated dashboards launching on February 9.
Proximity markets to debut after mainnet
The foundation also confirmed that its experimental “proximity markets” model will enter beta following the mainnet launch. The system allows high-volume users, such as market makers, trading firms, and applications, to bid for positions close to the network’s sequencer.
The goal is to reduce latency, improve trade execution, and lower transaction costs, while simultaneously creating an additional source of demand for MEGA tokens through the bidding process.
