TLDR
- MegaETH’s token sale raised $50 million in minutes, 3x oversubscribed.
- The sale valued MegaETH’s FDV at nearly $1B, with demand over $3B.
- MegaETH repurchased 4.75% of its token supply from early investors.
- MEGA token auction capped at $50M, offering a 10% discount for staking.
The public auction for the MEGA token, the native asset of MegaETH, concluded in record time, surpassing expectations and raising a maximum of $49,950,000. The sale, which was intended to last 72 hours, was completed within minutes, demonstrating overwhelming demand. This token sale, which sold 5% of MegaETH’s total supply, valued the project at close to $1 billion. The overwhelming interest, more than three times the available supply, points to strong investor confidence in the Ethereum Layer 2 protocol.
MegaETH’s Auction Oversubscribed by 3x
The MEGA token auction, launched on October 27, 2025, drew attention from accredited investors globally. The sale, conducted on the Ethereum mainnet using USDT, was capped at $50 million. However, the demand was significantly higher, with an implied fully diluted valuation (FDV) of over $3 billion at the time.
The auction initially set a 72-hour window but was cut short after reaching its funding cap within minutes. This fast-paced auction allowed individual bids to range between a minimum of $2,650 and a maximum of $186,282. Participants had the opportunity to secure a 10% discount on their tokens by locking them for one year.
A whitepaper released earlier provided insight into the token’s allocation. Approximately 9.5% of the total supply was designated for the project’s team, while 70.3% is reserved for ecosystem reserves, staking rewards, and the development of infrastructure features. The remaining 14.7% was allocated to venture capital investors.
Buyback from Early Investors
In a related move, MegaETH recently announced a repurchase of around 4.75% of its token supply from undisclosed early investors. This decision follows the auction, highlighting the project’s commitment to reshaping its token distribution and aligning its interests with long-term stakeholders.
MegaETH’s buyback strategy aims to consolidate ownership and strengthen the protocol’s foundation. This step may also increase the overall scarcity of tokens, potentially boosting value for remaining investors. However, the names of the early investors who participated in the buyback were not disclosed, leaving some aspects of the process unclear.
Despite the lack of transparency regarding early investors, the buyback indicates that MegaETH is actively managing its tokenomics. The repurchase serves as a response to the overwhelming demand for the MEGA token, aligning with the project’s goal of creating a robust Layer 2 Ethereum ecosystem.
Strategic Token Distribution
The token allocation structure is integral to MegaETH’s plans for long-term growth. With a total supply of 10 billion tokens, MegaETH has reserved substantial portions for team development, staking rewards, and its ecosystem. A significant portion of the tokens, about 70.3%, is set aside for the project’s core ecosystem development and staking rewards, which will be distributed over time.
Venture capital investors hold 14.7% of the MEGA supply. This allocation ensures that early investors remain incentivized to support the project’s growth and success. The remaining 9.5% is allocated to the team, which includes the protocol’s developers and key personnel. This distribution suggests that MegaETH is placing a strong emphasis on ensuring long-term sustainability while building a decentralized and engaging ecosystem.
