MegaETH Completes First MEGA Buyback Using USDm Yields

The MegaETH Foundation announced on May 7 that it had completed its first buyback of MEGA tokens, funded entirely by net yields generated from the USDm stablecoin issuer through the end of April. The move launched a new program tying the Ethereum Layer 2 network's stablecoin revenue directly to demand for its native token, with MEGA rising more than 8 percent in the following 24 hours to around $0.130 before settling near $0.122.

USDm, a yield-bearing stablecoin developed in partnership with Ethena, maintains a supply of approximately 480 million. Its reserves consist primarily of BlackRock's tokenized U.S. Treasury fund BUIDL via Securitize, supplemented by liquid stablecoins for redemptions. The yields from these assets flow to a separate issuer, which the foundation clarified is not operated by MegaETH or MegaLabs. Under the program, all net income from this issuer as of April 30 supported the initial repurchase.

Future buybacks will operate programmatically and onchain, executed according to preset rules on the MegaETH network to minimize discretionary decisions and keep activity within the ecosystem. The foundation stated that repurchase amounts will vary based on...