MegaETH Foundation states that net revenue from its USDm stablecoin is funding an ongoing MEGA token buyback program, linking Treasury-backed yield to market support for the Layer 2 token after its post-launch decline.
MegaETH Foundation said its MEGA token buyback program is funded entirely by net revenue generated by its USDm stablecoin and is designed to create a standing source of market demand for the token. The existing program began with a first repurchase completed on May 7 using all cumulative net proceeds generated by the USDm issuer through the end of April, when USDm supply was about $480 million. The new announcement adds that the buyback converts Treasury-backed yield from USDm into MEGA purchases and comes after a sharp post-launch selloff in the token. The foundation still did not disclose the value of the first repurchase, the number of MEGA tokens acquired, or operational details for any future programmed buyback mechanism.