The Ethereum-based layer-two project — MegaETH, has confirmed the authenticity of the leaked “whitepaper”, prepared in accordance with the requirements of the European MiCA regulation. The document reveals details of the upcoming public offering of MEGA tokens, the project’s legal structure, and unique infrastructure elements.
Regulation opens doors for EU investors
MiCA (Markets in Crypto-Assets) is the EU’s first comprehensive regulatory act for cryptocurrencies. Its full implementation began in December 2024, and now projects that comply with MiCA can officially attract retail investors from Europe.
This is an important step for MegaETH: now participation in the MEGA token sale will be open to European investors, but with a number of restrictions. Each buyer is required to pass KYC verification, and funds will be held by the licensed custodian OKCoin Europe Limited. There is also a two-week period for investment refunds and mandatory risk disclosures.
Such measures make the project legally transparent but may slow down mass retail investor involvement due to the complexity of the procedures.
Token structure and economic model
According to the whitepaper, the total supply of MEGA will be 10 billion tokens. Of these, 9.5% is allocated to the development team, 14.7% to venture investors, and 53.3% is intended for staking rewards and network activity incentives.
MegaETH positions MEGA as the economic engine of its infrastructure, connecting two key mechanisms — sequencer rotation and proximity markets. These solutions are designed to increase network efficiency and liquidity depth in DeFi.
Earlier this month, the project announced a buyback of 4.75% of tokens from early investors, aiming to redistribute ownership and reduce concentration.
New sequencer architecture
One of MegaETH’s main innovations will be a global sequencer rotation system. At any given time, only one operator is active, which changes depending on the economic “day” of the region. Participants will compete for the right to manage the sequencer by staking MEGA and proving technical reliability.
The selection will take into account the amount of stake, work history, and infrastructure performance. In case of operator failure, the next participant on the waiting list will instantly take its place. According to the developers, this model should reduce latency and increase network stability worldwide.
Proximity markets: liquidity through geography
Another innovation is the so-called “proximity markets”, connecting the real economy with on-chain mechanics. Market makers and applications will be able to rent computing power near the sequencer node by locking MEGA tokens.
This creates a new market for low-latency trading, where participants will pay for “proximity to the sequencer”. All positions will be tokenized, and data on their activity will be broadcast in real time via an on-chain indexer. This will allow liquidity to react to events in milliseconds and reduce spreads on DeFi platforms.
Focus on institutions
MiCA opens significant opportunities for MegaETH. Thanks to regulatory compliance, the project can cooperate with regulated custodians and European exchanges, as well as legally offer the token to retail investors.
However, experts also note the downside. Strict MiCA requirements — disclosures, refunds, KYC procedures — complicate the token launch and make mass participation less flexible. Nevertheless, for institutional investors, this may become a key trust factor.
What’s next?
The public sale of 500 million MEGA tokens, equivalent to 5% of the supply, will be held using the English auction model. Distribution in the MiCA format makes MegaETH one of the first crypto projects focused on the European market with full legal transparency.
If the launch is successful, MegaETH could set a new standard for projects seeking to combine Ethereum’s technological innovation and the EU’s strict regulatory principles.
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