Tokenomics
$MEGA is the native token of MegaETH, designed with protocol-level utility that directly supports the network's real-time performance and decentralization goals. The community is the largest stakeholder.
Total Supply: 10 billion $MEGA
Token Utility
$MEGA enables two core protocol features that optimize network performance and reward token holders:
Sequencer Rotation
MegaETH operates with one active sequencer at a time, rotating globally to follow the world's economic day across four key regions: Tokyo, Netherlands, Northern Virginia, and Los Angeles.
Operators stake $MEGA to compete for sequencer selection in each time window
Selection based on stake amount, past performance, and infrastructure quality
Faults are slashed to maintain network reliability
Ranked standbys provide instant failover for continuous operation
End-to-end latency optimized for where users are most active
Proximity Markets
Market makers and applications can bid for sequencer-adjacent floor space by locking $MEGA, enabling minimal latency for real-time order submission and confirmation.
DeFi benefits from tighter spreads and deeper liquidity
Seats are bid on by locking $MEGA - creating natural token demand
Dynamic allocation based on demand, fully tokenized and transparent
Onchain indexer streams real-time market data for instant reactions
As colocation demand grows, so does demand for $MEGA
Token Distribution
KPI Staking Rewards
53.3%
Performance-based emissions to aligned stakers
Company
~32%
Team & advisors (9.5%), Foundation (7.5%) and VCs (14.7%)
Echo Sale
5%
$220M FDV (December 2024)
Fluffle Holders
2.5%
$550M FDV (February 2025)
Public Sale
5%
$1B FDV (November 2025)
Mainnet Campaign
2.5%
Active ecosystem user rewards
Allocation Announcement | Learn more about community first approach | 4.75% Supply Buyback By MegaETH
KPI Staking Rewards
Over half of total supply (53.3%) is reserved for KPI-based distribution - a novel approach that ties token emissions to network performance and adoption milestones, not arbitrary time schedules.
How It Works:
Gated to $MEGA stakers - only stakers receive KPI rewards
Time-weighted rewards - stake duration impacts allocation (10-day minimum, 30-day maximum for full multiplier)
Unvested tokens can stake - rewards follow original vesting lock terms
Compounding enabled - claim and restake rewards to increase position
Sustainable emissions - supply increases only as ecosystem hits key milestones
KPI Verticals:
Rewards unlock when the network achieves measurable targets across four key areas:
Ecosystem Growth - dApp adoption, user activity, TVL milestones
Technical Performance - Transaction throughput, latency benchmarks
MegaETH Decentralization - Sequencer rotation participation, geographic distribution
Ethereum Decentralization - Contribution to broader Ethereum ecosystem goals
All KPI metrics are objective and onchain, ensuring transparent and verifiable reward distribution.
Key Takeaway: $MEGA's tokenomics model prioritizes sustainable growth by linking emissions to measurable network success, ensuring that token distribution rewards genuine ecosystem contribution rather than passive holding.
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