MegaETH completes buyback of 4.75% stake from early investors
Summary
- MegaETH said it bought back 4.75% of equity from pre-seed investors.
- The measure was intended to decentralize ownership and to reconfigure shareholder composition in line with long-term goals.
- MegaETH said it presented a model to establish a responsible network ownership structure through a buyback before the token launch.
MegaETH said on the 20th that it had bought back 4.75% of the company's equity from pre-seed investors.
This buyback is a measure to reconfigure shareholder composition in line with the long-term goal of ownership decentralization. MegaETH had previously pursued ownership decentralization through community participation rounds such as the Echo Sale and the Fluffle Sale.
In the crypto industry, buybacks are typically conducted after a token generation event (TGE) through market purchases using foundation funds. However, MegaETH recovered equity through a buyback before the token launch. The company said, "It presents a new model to establish a responsible network ownership structure even before the token launch."
Shuyao Kong, MegaETH co-founder, said, "We have prioritized ownership and builders aligned with long-term goals over short-term funding," adding, "We prefer to recover stakes from the market instead of allowing them to circulate privately."
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