The MegaETH Foundation has unveiled a major strategic initiative designed to bolster the value proposition of its native governance token, MEGA, by systematically utilizing operational revenues generated from its successful USDM stablecoin. The resolution, passed by the Foundation’s governing council, mandates that a substantial portion of the net yield accumulated by the USDM reserves will be allocated to scheduled buyback programs for the MEGA token.
USDM, a prominent stablecoin within the MegaETH ecosystem, generates revenue primarily through the yield derived from its collateral—typically consisting of highly liquid, short-term treasury assets and institutional debt instruments. This sustainable income stream will now serve as a permanent funding mechanism for MEGA liquidity and supply reduction efforts.
The Foundation stated that the goal of these systematic buybacks is two-fold: first, to decrease the circulating supply of MEGA, thereby introducing deflationary pressure and enhancing scarcity; and second, to directly align the economic incentives between stablecoin adoption (USDM) and governance participation (MEGA). Token holders view this move as a significant step towards greater sustainability and intrinsic value accrual.
Implementation of the buyback program is expected to commence at the start of the next fiscal quarter. The Foundation has committed to transparently reporting all revenue figures and the total amount of MEGA purchased and subsequently burned or placed into the treasury reserve.
Source: MegaETH Foundation to use USDM stablecoin revenue to fund MEGA token buybacks
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