Decouples execution, sequencing, and verification into specialized roles to maximize hardware utilization. Settles to Ethereum as an L2. Run via a single sequencer model with stateless validation. Uses an EVM-compatible execution environment.

MegaETH is an Ethereum Layer 2 blockchain that targets 100,000+ transactions per second and sub-10ms block times. Its architecture separates sequencers, executors, and verifiers to maximize hardware efficiency and uses an in-memory state structure called SALT (Small Authentication Large Trie) to eliminate disk I/O during execution.

Founded by Shuyao Kong and Namik Muduroglu. MegaETH Labs leads protocol development; the network is intended to be operated by independent sequencers, executors, and verifiers.

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MegaETH

# MegaETH Token incentives Methodology

## 1. Overview

Token incentives measures the value of native MEGA assets distributed to stakeholders as KPI-gated staking rewards on MegaETH. When the network reaches a KPI milestone, the MegaStaking contract distributes MEGA to committed stakers, who realize it by claiming. Tracking these reward claims provides insight into the asset emission rate and the economic cost of incentivizing network participation, which is analogous to stock-based compensation in traditional finance.

## 2. Data sources

- **Blockchain events**: decoded `RewardsClaimed` and `LockedStakingRewardsClaimed` events emitted by the MegaStaking contract (proxy `0x42bfaaa203b8259270a1b5ef4576db6b8359daa1`), covering MegaETH
- **External data**: End-of-day price feeds for the MEGA asset

## 3. Step-by-step calculation

### Component A: Reward claim extraction

- **Purpose**: Identify and extract MEGA rewards distributed by the staking contract
- **Logic**: The MegaStaking contract's own `RewardsClaimed` (regular staking) and `LockedStakingRewardsClaimed` (locked staking) events are read directly, and the decoded reward `amount` is summed where the reward `token` is MEGA (`0x28b7e77f82b25b95953825f1e3ea0e36c1c29861`). These events fire only on an actual reward distribution, so the measure excludes principal unstakes and other token movements that share the staking contract, and it also captures rewards that are recommitted (restaked) rather than transferred out.
- **Key fields**: `block_timestamp`, `token`, `amount`

### Component B: Normalization and USD conversion

- **Purpose**: Normalize asset quantities and convert them to USD values
- **Logic**: Raw reward amounts are normalized by the asset's decimal precision of 18. The normalized daily sums of distributed rewards are then multiplied by the end-of-day price of the MEGA asset to determine the daily USD value of the incentives.
- **Key fields**: `token_incentives`, `price_usd`

### Component C: Aggregation and zero-filling

- **Purpose**: Aggregate daily values and ensure continuous time-series data
- **Logic**: The USD-denominated incentives are aggregated by day. A zero-filling strategy is applied to ensure that days with no reward claims are populated with a value of zero, maintaining a continuous daily time series.
- **Key fields**: `timestamp`, `token_incentives`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens distributed as incentives.

MegaETHMEGA

Token incentives

Token incentives

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