MegaETH is putting valuation power in the hands of bidders. The real-time blockchain said it will auction 5% of its token supply on Oct. 27 via Echo’s Sonar platform, starting at a $1 million valuation and capped below $1 billion.
Summary
- MegaETH said it will auction 5% of its MEGA token supply on Oct. 27 via Echo’s Sonar platform.
- The English auction aims to prevent inflated valuations and establish a broad base of non-insider investors.
- A “U-Shaped Allocation” system will follow for oversubscription, prioritizing proven contributors.
According to an announcement on Oct. 22, the project will employ an English auction for the 5% slice of the MEGA token supply. This method allows the market to discover a clearing price, beginning at a $1 million fully diluted valuation and stopping at a $999 million ceiling.
The structure is designed to prevent the runaway valuations that have plagued previous token auctions and burned retail participants. MegaETH, which has already secured $30 million from backers like Dragonfly, Vitalik Buterin and 3,000 Echo users, is using this sale to establish its core investor base, the blockchain’s team said.
“This public sale will make non-insider investors the single largest stakeholder in the MegaETH network, larger than the VCs and the team,” the announcement read.
A new model for community ownership
Should the Sonar auction see heavy demand, MegaETH has a secondary phase planned for its mainnet launch. The project has committed to reserving an additional tranche of tokens specifically for those who participated in its previous funding rounds, including the Sonar, Echo, and Fluffle sales.
To manage that potential oversubscription, MegaETH will deploy a “U-Shaped Allocation” system. On one end, it prioritizes “depth” by granting larger allocations to participants who can
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Author: Brian Danga
