CoinDesk
MEGA, the developer behind the Ethereum layer-2 network MegaETH, cut 20% of its staff on Friday as it prepares to launch an AI marketplace in December, backed by a $30 million treasury commitment. Co-founder Shuyao Kong said the cuts hit teams working on the blockchain, wallet and ecosystem, while the founders and core engineering team remain intact. The restructuring follows the MegaETH Foundation's rebrand as MEGA.
The pivot lands amid a sharp deterioration in network activity. Total value locked in MegaETH's DeFi ecosystem sits at $8.8 million, down from a peak above $245 million, according to DeFiLlama data, and the network's token has fallen more than 70% this year, per CoinDesk data.
Why it matters
Kong framed the move as a rejection of the chain-only thesis: "Staying a chain-only company felt wrong and would have meant ignoring the biggest opportunity in front of us." For a layer-2 that raised $20 million in a 2024 round led by Dragonfly with backing from Ethereum co-founder Vitalik Buterin, and then pulled in $450 million in an oversubscribed token sale, the retreat from core scaling work is a sobering signal for the L2 sector's crowded field.
Market impact
The token's 70%-plus drawdown and the TVL collapse from $245 million to $8.8 million leave little cushion if the AI bet fails to bring users back. MEGA's marketplace will let customers buy access to AI models from competing providers, with the white paper proposing ways for buyers to verify which models are used and reserve compute at agreed prices, though launch features are unconfirmed. Watch the December launch and the planned decentralization changes targeted for completion by the end of March 2027.
Frequently asked questions
-
Why is MegaETH cutting 20% of its staff?
MEGA is redirecting resources toward a $30 million AI marketplace launch planned for December. The cuts affected blockchain, wallet and ecosystem teams, while the founders and core engineering team remain.
-
How much total value locked has MegaETH lost?
According to DeFiLlama data, total value locked in MegaETH's DeFi ecosystem is currently $8.8 million, down from a peak above $245 million.
-
What is MEGA's upcoming AI marketplace?
It is a marketplace where customers can purchase access to AI models from competing providers. The white paper proposes ways for buyers to verify which models are used and reserve computing capacity at agreed prices, though launch features are unconfirmed.
-
How far has the MEGA token fallen this year?
The MegaETH network's token has fallen by more than 70% this year, according to CoinDesk data.
-
How much funding has MegaETH raised in total?
MegaLabs, the network's original developer, raised $20 million in 2024 in a round led by Dragonfly and backed by Vitalik Buterin. MegaETH later raised $450 million in an oversubscribed token sale.
TheBlock
Crypto News
CryptoSlate
WuBlockchain