MegaETH and Ethena jointly launch native stablecoin USDm to subsidize sorter fees

MegaETH, an Ethereum scaling solution developed by MegaLabs, is launching on-chain a stablecoin called USDm, which is designed to replace traditional sorter margin and use reserve proceeds to cover network operating costs. The model, built by MegaETH in partnership with Ethena, a decentralized financial protocol, aims to harmonize on-chain and ecosystem incentives by running sorters at cost and keeping user and developer transaction fees low and stable. Currently, multiple Layer 2 networks generate revenue by marking up sorter fees. USDm aims to solve this problem: when a project goes live on the mainnet, it will use the stablecoin reserve proceeds to pay for shared network costs.
The first version of USDm will be released on Ethena's USDtb protocol layer. A MegaETH representative revealed to The Block that USDm will be exchanged for USDtb at launch, rather than offering fiat redemptions directly. The team did not disclose the target float amount to cover daily operating expenses, saying that these parameters will be determined over time. Regarding other revenue streams (such as MEV), MegaETH said that the relevant details will be announced before the mainnet goes live.