MegaETH has flipped its treasury yield into a standing bid for its native token. The MegaETH Foundation announced it has kicked off a MEGA token buyback program funded entirely by net revenue from its USDm stablecoin, completing the first repurchase with earnings accumulated through April 30. What’s happening - The Foundation said on X that it “completed the first MEGA buyback using all net income generated by USDm’s issuer as of April 30,” and framed the move as the launch of an ongoing demand loop that recycles stablecoin revenue back into MEGA. - Future buybacks will be “as programmatic as possible,” running to preset rules rather than being manually timed. The size of each operation will vary with USDm supply and the yield earned by its reserve assets. How the funding works - USDm is a yield-bearing stablecoin built on Ethena’s USDtb rails. Its reserves are primarily invested in BlackRock’s tokenized U.S. Treasury fund BUIDL via Securitize, with liquid stables kept for redemptions. - The yield from those reserves flows to USDm’s issuer. Under the new arrangement, that income is used to buy MEGA on the open market. - The Foundation emphasized that USDm is issued and operated by a separate entity—not by the MegaETH Foundation or MegaLabs—even though the stablecoin’s economics are tightly coupled to MEGA. Why this matters - By tying buybacks to USDm revenue, MegaETH turns treasury-backed yield into a persistent buyer for MEGA, effectively linking token demand and scarcity to stablecoin adoption and on-chain activity. - MEGA has a fixed supply of 10 billion and serves as gas, staking, and governance token for MegaETH’s “real‑time Ethereum” L2, which targets sub-millisecond latency and over 100,000 transactions per second. Ecosystem and KPIs - Earlier this year MegaETH described USDm as an “economic engine”: its yield will subsidize sequencer costs and network fees and now fund MEGA purchases. - The broader plan includes token generation triggers tied to KPIs—e.g., $500 million in USDm circulation, 10 apps launched on MegaETH, or three apps producing $50,000 in fees for 30 consecutive days (as summarized by MEXC). Market context - DeFiLlama data show the MegaETH stablecoin stack at roughly $810.6 million market cap, with USDm representing about 58% of that supply—implying USDm is in the ~$470–$480 million range. - The timing is notable after a rocky start for MEGA: AInvest reported the token fell about 38% from its April 30 launch price to $0.138 amid heavy selling from early participants. Bottom line If USDm circulation and Treasury-backed yields continue to grow, the programmatic buyback mechanism could become a steady marginal buyer in secondary markets—anchoring MEGA’s value more to real usage and stablecoin demand than to one-off speculation. The first repurchase marks the point where MegaETH’s theoretical flywheel starts to run in practice. Read more AI-generated news on: undefined/news