MegaETH Starts Programmatic On-Chain MEGA Buybacks

MegaETH Foundation completed its first MEGA token buyback using net rewards from the USDm stablecoin and announced on X on May 7 that future repurchases will be programmatic and executed on-chain. The foundation wrote that the initial repurchase used all net rewards accrued through the end of April.

USDm, a synthetic dollar stablecoin created in partnership with Ethena, has a reported supply of $480 million. The foundation said the buyback mechanism will be funded by yield generated from USDm’s reserve assets, with proceeds drawn from collateral returns and fees tied to the stablecoin.

The foundation wrote that programmatic, on-chain execution is designed to limit discretionary decision-making and to support liquidity and trading activity on MegaETH’s own chain rather than routing capital through external venues. The post included a legal clarification: “USDm is neither issued nor operated by [the Foundation] and MegaLabs.” It also warned that available funds will vary: “funds available for buybacks are unlikely to be the same each period. USDm supply rises and falls, and reward share is impacted by prevailing rates of return on underlying reserve assets.”

On-chain decentralized finance activity on MegaETH contributes to the yield that will fund buybacks. Aave, deployed at MegaETH’s February mainnet launch, reported it had crossed $575 million in deposits on MegaETH as of May 1. The foundation cited such on-chain deposits as the activity that generates rewards used in buybacks.

Market reaction to the announcement was limited. MEGA rose more than 8% within 24 hours after the foundation’s post, trading briefly around $0.130 before settling near $0.122.

The announcement referenced other industry buyback programs. Hyperliquid repurchased about $645 million of HYPE tokens through an Assistance Fund in 2025 and routed roughly 97%–99% of trading fees into buybacks and permanent burns. Pump.fun allocated 100% of revenue to PUMP buybacks for nine months after launch; the token later traded about 81% below its all-time high and near record lows in 2026. Pump.fun later reported it had burned roughly $370 million of bought-back PUMP, about 36% of circulating supply, and said it would split future revenue between operations and a programmatic buyback-and-burn scheme.

The foundation did not disclose the dollar amount of the initial buyback, only that it used net rewards accrued through April. It reiterated that buyback size will vary with USDm supply and with prevailing rates of return on the reserve assets. The foundation also reiterated that USDm’s operations remain separate from the foundation and MegaLabs.