The MegaETH Foundation has officially kicked off its MEGA token buyback program, using net revenue generated by the USDm stablecoin to fund the first repurchase. The move aims to create ongoing demand for MEGA after the token suffered a sharp post-launch selloff.
The first buyback used all net income from USDm through April 30, according to the foundation’s announcement on May 7. Future repurchases will be programmatic and executed on-chain, with the size varying based on USDm supply and prevailing reserve yields. This structure is designed to eliminate discretionary decisions and align incentives directly with stablecoin growth.
USDm, a yield-bearing synthetic dollar, was built in partnership with Ethena using its USDtb rails. Its reserves are predominantly held in BlackRock’s tokenized U.S. Treasury fund (BUIDL) via Securitize. The stablecoin’s supply now stands at $480 million, and its generated yield serves as a funding engine for the buyback. The foundation emphasized that USDm is issued and operated by an independent entity, not by MegaETH Foundation or MegaLabs, maintaining a separation between stablecoin operations and token economics.
This buyback model ties token demand directly to network activity. Notably, Aave, one of the first DeFi protocols deployed on MegaETH at its February mainnet launch, has surpassed $575 million in deposits on the network, indicating a growing activity base that could boost future USDm yields—and, by extension, buyback capacity.
The program positions MegaETH closer to the successful buyback model of Hyperliquid, which led all protocols in 2025 repurchase activity. In contrast, Pump.fun’s aggressive buyback-and-burn strategy failed to prevent an 81% decline from its all-time high. MegaETH’s emphasis on transparent, automated execution is a deliberate choice to avoid the pitfalls of opaque approaches.
MEGA is the native token of the high-performance Ethereum Layer 2 network, which targets sub-millisecond latency and over 100,000 transactions per second. With a fixed supply of 10 billion tokens, MEGA is used for gas payments, staking, and governance. Following the buyback announcement, MEGA saw a brief 8% price uptick, but later settled around $0.122.
