MegaETH’s pre-deposit occasion unraveled on Tuesday after a cascade of technical failures disrupted what was meant to be a managed opening for verified customers.
In an X publish, the staff said that configuration errors and rate-limit points brought about the platform’s Know Your Buyer system to fail. The pre-deposit was an early window for verified customers to lock in MEGA token allocations.
Along with the KYC failures, a totally signed Protected multisig transaction — ready for a later cap improve — was executed prematurely, permitting new deposits to move in and pushing the increase previous its supposed $250 million restrict.
“The $250M cap is stuffed by individuals who have been spamming refresh on the Pre-Deposit Web site and have been in a position to catch the random opening time,” the protocol mentioned.
MegaETH finally froze deposits at $500 million and scrapped plans to increase the increase to $1 billion. A retro and a withdrawal possibility will likely be launched shortly.
“At no level have been property in danger, however that doesn’t matter; we anticipate larger of ourselves and there aren’t any excuses,” the staff added.
MegaETH is an Ethereum layer-2 protocol designed to ship ultra-low-latency block processing and throughput, corresponding to a real-time Web2 software.
Some customers praised MegaETH’s transparency in explaining what occurred, however others have been way more crucial. AzFlin, a developer and DAO founder, argued that the errors may have been prevented if engineers had been extra cautious.
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MegaETH’s oversubscribed public sale recap
The pre-deposit window got here on the heels of MegaETH’s MEGA token auction, which opened on Oct. 27 and was absolutely subscribed inside minutes.
That sale supplied 5% of the 10-billion-token provide, with bids starting from $2,650 to $186,282 and an elective one-year lock-up that supplied a ten% low cost.
The public sale closed on Oct. 30, finally drawing greater than $1.3 billion in commitments and changing into one of many 12 months’s most crowded raises.
As a result of contributions far exceeded the cap, MegaETH mentioned it might depend on a “particular allocation mechanism” to find out the quantity every participant finally receives.
MegaETH is constructed by MegaLabs, a staff backed by main trade figures together with Ethereum co-founders Vitalik Buterin and Joe Lubin.
Following its testnet launch in March, the challenge is now concentrating on 100,000 transactions per second with sub-millisecond latency. The MEGA token is ready to launch in early 2026.
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