TheBlock
MEGA, formerly the MegaETH Foundation, has cut 20% of its workforce as part of a restructuring that shifts the company in a new direction, according to an X post from co-founder Shuyao Kong. The layoffs hit employees who helped build the MegaETH Ethereum Layer 2 blockchain, wallet, and ecosystem, while the founders, early employees, and core engineering team remain on the project.
Why it matters
The cuts arrive just a week after the foundation rebranded as MEGA and committed $30 million to new products, including AI inference. Kong framed the pivot in explicitly ideological terms, telling The Block that crypto is the only technology that makes AI fair and open, and that cryptography and distributed systems will change how the world produces and accesses what she called purified intelligence.
Losing the builders of the original L2 while redirecting capital toward AI is a clear signal of where the organization now sees its future, and a real cost for the ecosystem that supported MegaETH's launch.
Market impact
The MEGA token launched in April after the team hit its first performance milestone, with 53.3% of supply tied to KPI-based staking rewards. It trades around $0.045, up about 7.5% over the past 30 days, so the market has so far shrugged off the restructuring news. Watch whether staking participation holds as the KPI framework gets rewired toward AI products rather than L2 ecosystem growth.
Frequently asked questions
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How much of MEGA's workforce was cut in the restructuring?
MEGA cut 20% of its employees as part of a restructuring announced by co-founder Shuyao Kong. The cuts affect staff who built the MegaETH Ethereum Layer 2 blockchain, wallet, and ecosystem.
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Why did the MegaETH Foundation rebrand to MEGA?
The foundation rebranded as MEGA alongside a $30 million commitment to new products, including AI inference. Co-founder Shuyao Kong framed the move around the belief that crypto is the only technology that makes AI fair and open.
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Did the MEGA token price fall after the layoffs were announced?
The MEGA token trades around $0.045 at publication time, up about 7.5% over the past 30 days, so the market has not yet reacted negatively to the restructuring news.
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How is the MEGA token supply distributed?
The MEGA token launched in April after the team hit its first performance milestone, with 53.3% of the supply tied to KPI-based staking rewards.
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Who stays at MEGA after the workforce cuts?
The founders, early employees, and core engineering team remain committed to the project, while the layoffs target other employees, including those who helped build the original Layer 2 infrastructure.
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