MegaETH Drops USDm: A Stablecoin That Could Change How Blockchains Pay Their Bills

MegaETH, a real-time Ethereum Layer-2 (L2) blockchain designed to achieve near-instant transactions, seems to be taking on a new development, USDm, aimed at blockchain economics.

According to an announcement shared with blocmates, USDm, will be issued through Ethena’s stablecoin infrastructure and tied directly to the operation of the MegaETH network.

The Mechanics: How does it work?

Compared to the majority of the Layer-2 networks out there that tend to rely on fee markups or speculative token models, USDm is practically different. The token introduces a programmatic way to fund network operations.

This includes redirecting its source yield sourced from Ethena’s USDtb framework and other liquid stable assets to cover sequencer operating expenses (OPEX). This structure allows for MegaETH to price gas at cost while still generating long-term cash flow.

The model basically aims to lower transaction fees without compromising profitability.

As outlined in the announcement by the team, the sequencer becomes “non-extractive,” meaning users still pay gas fees but minimal and predictable while the network sustains itself through yield rather than inflated charges.

Both users and builders involved benefit from stability, while the protocol captures consistent revenue.

The Governance and Coexistence

The launch of USDm will be integrated fully into the MegaETH ecosystem while will cover wallets, dapps, paymasters, and onchain services.

Initially, reserves are issued toward USDtb (via Securitize’s BUIDL) but according to the announcement, this may eventually expand to include Ethena’s USDe or other future products. Notably, ETH will remain the canonical gas token, ensuring continuity with Ethereum standards.

Central to the design is also governance. Validators will be in charge of which team is approved to deploy the USDm ticker through onchain voting, with a spot gas auction mechanism ensuring transparency.

USDm will operate alongside existing stable assets like USDT0 and cUSD, with liquidity and routing maintained so that users can choose freely. The expectation is that lower fees will attract more applications, increase stablecoin demand, and reinforce the network’s growth cycle.

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