Original source: MegaETH

October 17, 2025—MegaETH today announced that it has completed a cash buyback of 4.75% of the company's equity from its seed round investors.

Unlike most crypto projects that have early ownership locked up by insiders for a long time before the network goes live, MegaETH has been committed to reshaping its equity structure to achieve long-term alignment of interests. The company has previously conducted two rounds of community participation activities, the Echo Sale and Fluffle Sale, aimed at decentralizing ownership to the community and ecosystem participants. This buyback further advances this concept.

MegaETH co-founder Shuyao Kong stated, "From day one, we have prioritized ownership alignment and long-term builders over transitional capital. Of course, we have great respect for our investors and thank them for accompanying MegaETH's growth. Today, we are pleased to give back our joy to the investors. What we want to convey to the market is that when opportunities arise, we prefer to buy back shares from the market rather than let these shares circulate privately, as private circulation can affect the secondary market performance of the Token in the long run. More importantly, we will implement a new incentive system for long-term Token Holders that will demonstrate our determination, which will be announced later."

In the crypto space, most buybacks typically occur after a token generation event, usually through treasury funds purchasing on the open market. However, MegaETH's approach is unusual because its buyback occurs before the project launch, representing a deliberate move that showcases the team's long-term commitment to MegaETH.

By continuously optimizing ownership before the Token issuance, MegaETH demonstrates a new model of responsible network building that requires great courage.

Key Points

MegaETH has bought back 4.75% of its equity.

No VC secondaries permitted. Institutional investors are not allowed to conduct secondary market transfers according to policy.

Alignment over churn. Focused on long-term value rather than frequent turnover. This transaction concentrates ownership among long-term operators and the community rather than short-term financial investors.

The terms of the transaction are not disclosed, but it has received approval from key stakeholders, including well-known investment firms Dragonfly and Echo, and strictly adheres to relevant laws, regulations, and governance procedures.

This article is from a submission and does not represent the views of BlockBeats.

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