MegaETH Token Launches as Ethereum Layer-2 Network’s Novel Rewards System Is Tested

MegaETH, an Ethereum layer-2 scaling network promising speedy and cheap transactions for consumer-facing, on-chain projects, launched its native token Thursday after months of anticipation.

At writing, MEGA is trading for $0.156, giving the token a market capitalization of $176 million, and a fully-diluted valuation of $1.56 billion. The token has fallen approximately 30% since the morning launch, per CoinGecko data, which is typical for new token launches amid limited initial liquidity.

The project’s founding team adopted a novel token rollout strategy, establishing key performance indicators for the network that must be reached in order for additional tokens to be released. Typically, tokens are instead rolled out steadily over time.

Those metrics include the overall growth of the MegaETH ecosystem, evaluated by the total value locked (TVL) on the network and the circulating supply of MegaETH’s native dollar-pegged stablecoin, USDm. They also include the overall performance and speed of MegaETH, as well as the progress made in decentralizing both the network itself and Ethereum as a whole.

As these milestones are met, more of MEGA’s supply will be unlocked, and MEGA holders who have elected to stake their tokens with the network will receive rewards. Those who lock up their tokens for a greater period of time will receive a greater portion of the total rewards allocated.

There will ultimately be 10 billion total MEGA tokens in circulation. As of launch today, just 1.129 billion of those tokens have been released. Over 5.3 billion of the tokens have been earmarked for MegaETH’s performance-dependent unlock rewards program.

Ultimately, 14.7% of the token’s total supply has been earmarked for venture capital investors; 9.5% for the project’s team and advisors, and 7.5% for a token foundation and ecosystem reserve. 500 million MEGA tokens, or 5% of the project’s total supply, were sold in a public sale.

Already, major exchanges including Coinbase and Binance have announced they will support trading for the new token.