# MegaETH Provides Tokenomics Update Days Ahead of Mainnet

*Author: Jack Inabinet*
*Published: Feb 6, 2026*
*Source: https://www.bankless.com/read/news/megaeth-provides-tokenomics-update-days-ahead-of-mainnet*

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Ahead of its official mainnet on Monday, the MegaETH team provided a tokenomics updates, which detailed future MEGA utilities and a token buyback program, but provided an uncertain timeline for TGE.

### **What's the Scoop?**
- **Token Utility: **[According](https://x.com/hotpot_dao/status/2019789203039809655?s=20) to MegaETH founder Shuyao Kong, "HFTs, and the like will spend MEGA to colocate with the MegaETH sequencer." MegaETH represents these so-called *proximity markets *as, "a bidding system denominated in MEGA, [that allows] market makers and apps to claim sequencer-adjacent space and reduce e2e latency to as low as <1ms." 
- **Buyback Program: **All USDM revenues generated by the MegaETH foundation to go towards buying back and accumulating MEGA. This dynamic will allow MEGA buyback pressure to increase with USDM supply, a potentially positive ecosystem flywheel.
- **Delayed TGE: **Both of the above programs require a token, however, and MegaETH's TGE is contingent on the achievement of any one of three key performane indicators: (1) USDM supply reaches a 30-day average of $500M and at least 25% is deposited into verified, non-custodial smart contracts across key applications; (2) ten "MegaMaffia" applications must be fully deployed; or (3) three applications achieve >$50k in daily fees.

> Buybacks, Proximity Markets and TGEThe MEGA Token will be integral to the MegaETH ecosystem.Once launched it will have 2 immediate core functions:1. [$USDM](https://twitter.com/search?q=%24USDM&src=ctag&ref_src=twsrc%5Etfw) yield will purchase MEGA2. Entities bid with MEGA to colocate with the sequencer (Proximity Markets)We've set KPIs… [pic.twitter.com/CSLG1rRUAt](https://t.co/CSLG1rRUAt)— MegaETH (@megaeth) [February 6, 2026](https://twitter.com/megaeth/status/2019789725016670483?ref_src=twsrc%5Etfw)