MegaETH: Does Speed Create Token Value? | Daily Crypto IQ 🧠

0:00Let's talk about Mega ETH. Now, I know a little bit about Mega ETH, but I don't claim to know everything about Mega ETH. So, I'll be learning alongside with you guys, as always. We learn as a community. My My whole thing is to educate myself and raise my crypto IQ, hopefully your crypto IQ, that it might possibly make you a better speculator in this market. Nothing is financial advice, right? And also, I'm not trying to sit up here and and tell you guys how

0:27smart I am, right? I We learn together. So, please ask questions if you have questions, and let's get into it. Mega ETH token autopsy. Does speed create token value? Feel like I go a little bit fast. It's very interesting, and I'm going to say this one thing before we get into it, right? Cuz I can go on a tangent like nobody else. But, some people really like it slower, and then some people they want the the information faster. So, for those people

0:53who want it faster, just remember, you can turn up the speed, and you don't got to turn it up much to feel much faster on the video, for anybody who didn't know that. Anyways, let's talk about identity and purpose, right? So, what does Mega ETH say that they are or trying to accomplish or fix? And then the purpose wraps right into that, as well. So, Mega ETH is an Ethereum-connected execution network built for applications

1:18that need quick responses. So, is it a layer two? Doesn't seem like it. Mega ETH is an Ethereum-connected execution network built for applications that need quick responses. And we have done some deep diving on Mega ETH and Monad. We compared those two, and that was really interesting. Solving the same problem, but in different ways. Its documentation describes it as an OP stack-based architecture with specialized execution and streaming.

1:50I believe that the OP optimism, right? Optimism stack-based architecture, or does OP refer to something else? Let's see if we can figure that out. So, the supplied address is mega, that's the ticker on mega ETH. You will see, here is the address. Just so nobody gets confused, this is a bit of a smaller, lesser-known token. So, I just wanted to make sure that that contract address is there. Now, I pulled that contract address, for all

2:17disclosure, directly from CoinGecko. So, if it's wrong, go blame CoinGecko, but I'm sure it's right. Binance's original listing announcement identifies this exact address and links it to mega ETH explorer, and the network's chain is 4326. That's if you're trying to add it to maybe MetaMask or something like that. Let's move along. So, the purpose is useful execution infrastructure. That's what mega ETH is all about. Mega's

2:45investment case requires its own economic assessment. So, again, you have mega ETH, which is the project, right? The company. Then you have mega, that is the ticker for the coin. So, when we say mega, we're talking about the coin, and when we say mega ETH, we are generally talking about the project. And here's a little bit of sources that I used. I just figured that'd be good to put out there. You can always pause it if I went a little fast. So,

3:11the problem and the users it serves. So, the problem here is simple. Latency is the delay between an action and a usable response. Throughput is how much work a network can actually process in a certain time period. You have like throughput per second, or you could have like throughput per day. Hey, Play Dogs. Play Dogs is another one. Shout out to you. Appreciate you being here. Says, "Making ETH great

3:41again." Absolutely. Absolutely. [music] And we are going to find out if the token, mega, cuz that's the ticker for the token, has any real connection to its ecosystem and is it built for deflation? Is it built to go up in value? Or is it just a token associated with a project? Maybe it's only for governance. There's a lot of tokens that are like that. And I have a whole spiel that I want to get into because I feel it's so important, but I'll save it for

4:11later about the connection there. So, a chain can improve one without proving everything about the other. So, latency is the delay between action and usable response. Throughput is how much work a network can actually process given a certain amount of time, right? You have like throughput per second, right? Throughput per hour, throughput per day. Some are plausible numbers and then some are actually tested in real world. We've

4:37actually seen it do it, right? So, what I'm saying here about throughput, cuz you'll see this across many other projects and I try to put little lessons in every single one of these about things that apply to multiple different things. Throughput's a good one. Do you have a estimated or projected amount of throughput that it could potentially do? And then you have throughput that has actually happened before, like they did a test, a stress test or something like

5:04that. So, a chain can improve one without improving everything about the other. So, trading interfaces, games and applications with frequent state changes benefit when each action does not interrupt the next. So, think of lagging. They just think of lagging, right? It's good when your game doesn't lag, when your app doesn't lag, and that is latency for all intent purposes.

5:32There's Melissa, welcome in, welcome in. Uh Plague Dogs says, "Good to be here. Schedule been so busy lately." I understand. Uh life is crazy. Don't forget to press the like button, folks. Exactly. Make sure you smash that like button. Uh good to see you played dogs as always. Now that we got rid of the game panzer dogs, maybe I'll stop mixing those up. But also, if you remember panzer dogs, we

5:58got a treat for you. Kendra actually built pan- panzer dogs, the tank game that we used to play. He built it in Kendra for us. Ah man, I love Kendra and the dev over there. He is so cool. Anyways, let me get back on track, right? So, the product opportunity is better interaction and more demanding application. The commercial challenge is attracting

6:25users who stay after the incentive ends. So, first off, it's very technical thing that Mega Eth is doing. But a lot of times those those very technical infrastructure type things are also highly useful in the space and sought after by people with big money who are in the space, developers and stuff like that. So, you have this dynamic between like highly useful or speculatively highly useful tech or code or product. And then you

6:57have the commercial challenge that comes after you've built the real thing, and that's attracting users who stay after the incentives end. And we've talked a lot about rewards and incentives. Reliable Jay says, "Seen that." Yeah, so cool, man. The stuff he's doing is really cool. How much he actually I'm a small channel. I definitely a small gaming web 3 channel, but I don't think there's a lot of people doing web 3 gaming. So, because we cover Kendra and

7:22have since like the very beginning, um he actually shows up on our stream and hangs out with us and listens to what everybody has to say. It is really really awesome. So, the problem and the user it serve. Faster in infrastructure can improve, of course, a game and application, whatever. It cannot write a good one, right? So, it can improve what is already good in its connection and ability to not lag and have

7:48problems, but it's not going to just build an application. That remains a disappointingly human responsibility, right? Everybody wants to hop on the chat GBT or Grok code or Claude code or whatever and say, "Build me this app." We're not there yet. For anybody who tries to tell you we're there yet, we are not there that I've tried it. I've done it. I've hopped on there and said, "Build me this app." It don't work like

8:14that. So, a sequencer orders and executes transactions. So, we're talking about a sequencer, right? We're going into the architecture and specialize the work, right? Specializality. Um execute transactions. So, an RPC node delivers information to users and applications. And if it's feeling a little heavy, just take a deep breath. A lot of the heavy stuff is up front because we're explaining what it is, right?

8:40So, again, the RPC nodes deliver information to users and application. Mega ETH, the project, streams execution results to those nodes instead of requiring every public-facing node to do the same heavy work. So, I guess they're splitting it up. The protocol combines rapid local execution with Ethereum connected settlement [music] and external data availability, DA, data availability. So, specialization can

9:10improve responsiveness. So, of course, if you specialize something, it should be more fit to do something specific. [music] That part should be a little bit obvious. It also makes the roles and permissions important. Which participants can verify results independently and which depend on the operator software or reports? And again, this is very blockchain technology um orientated, right? A dev would understand this stuff very well,

9:40but if you're not a dev, don't worry. We're going to make this simple for you. So, hardware performance and independent verification are separate attributes. They're not the same thing. Hardware performance and independent verification. Excellent results from an operator do not eliminate the need to check that operator. You need checks and balances. Again, here is where we pull that information from. So, mini blocks, EVM blocks and finality. is probably

10:06where we're going to start bridging the gap between what we just said and making it more easy for you to understand. Mini block feedback is about 10 milliseconds. EVM packaging about 1 second. And settlement on Ethereum comes at some later point. Fast sequencer feedback is not final settlement. So, this settlement on Ethereum it Ethereum is like finality. That's when it's really done. So, you can have these two move really fast. The mini block

10:34feedback and the EVM package can move very fast and that can show up for you in the application that you're using. In the game that you're playing, you're going to notice that and then the settlement can happen at another time. I think that's perfectly okay for most users. They're not worried about that. So, the documentation distinguishes roughly 10, um, millisecond mini blocks from approximately 1 second EVM blocks. We

10:58just covered that. Mini blocks deliver execution results very quickly. Mini blocks is something that is specific to Mega ETH, right? EVM means Ethereum virtual machine. Those blocks cuz they're going from Mega ETH to Ethereum for finality. Um, blocks package transactions in a familiar Ethereum compatibility format, right? And that's what the Ethereum virtual machine is all about. It's just a familiar code. It's a familiar,

11:26um, way that it shows up that Ethereum and everybody else who's has an EVM compatible because most people who are building dabs and things they build it to be compatible with Ethereum. They can all read the stuff as well. That makes it highly likely to be interoperable or you work across multiple networks. I know I'm giving a lot to you. I hope you came to raise that crypto IQ and you smash that like button. Free link to our Discord down in the chat. [music] So a

11:55signed mini block shows that a sequencer committed to it. It does not by itself establish the final settlement. That matters for an application. Fast feedback can make interface very responsive while deposits, withdrawals, and risk management may depend on later assurance. So it's kind of like the best of both worlds if you ask me where you kind of have the responsiveness and the quickness happening right up front while you're

12:24using the game, while you're using the app. And then you have a little bit of time, a little bit of delay when it comes to wallet transfers and stuff like that. And trust me the delay is very small, right? But it allows it to be caught or allows it to have a little bit of time to see what's going on. So calling every stage instant finality would compress several different security questions into a rather convenient adjective, right? Or

12:52assumption. So let's talk about ETH gas mega separate role while I finish this drink. And on to the protein shake. Don't worry, no whey protein. So ETH gas mega ETH separate role. So you have Ethereum's current gas, the USDM which is a dollar denominated asset, and mega the tokens ecosystem token. And notice that we're explaining what it is and we're moving slowly in closer to the token itself.

13:32ETH pays gas. So, the gas utility is paid in Ethereum. USDM has reserve economics, right? This is liquidity. And Mega has separate mechanics altogether. So, ETH is current native gas token. Mega is a separate ERC-20 asset. So, now we've learned that Mega the token is an ERC-20. Gas pays for computation and persistent storage. It's fancy language for resources that you need to do stuff online or in blockchain, right? Mega ETH

14:09gas model accounts for those resources separately, even though the transaction pays a combined charge. An app can therefore generate activity without creating direct gas demand for the Mega ETH token. And this is a newer project. So, I would expect a little bit more evolution or revolution in the technology that's coming out. This is not going to look exactly like, say, Ethereum or or Arbitrum or Polygon,

14:40even though it's very much trying to do the same thing. They decided to build it differently. Technically, it's not a layer two. But Manifold is a layer two, if I got that right, cuz we did a whole show comparing Mega ETH with Manifold. Anyways, Mega the token must earn its economic role through the mechanisms attached to it, which are repurchases, reward participation, and additional uses are they are implemented. Uses as

15:10they're implemented. I don't know why that didn't make sense to me. All right. So, we have repurchases, rewards, participation, and additional uses as they are added. An older white paper discusses future mega gas payments. That is not current operating configuration. So, although an old white paper discusses in the future using mega ETH token as gas payments hasn't happened yet. And when we do our token autopsies, we don't worry about

15:40what we'll talk about it, but we're not going to put it as a scoring mechanism because every single project gets its own score. And [music] so, we want to keep it to what is real right here, right now. So, live documentation takes priority over future tense paragraph. So, sources for five ETH and gas mega rolls, you can see them right here. Mega separate rolls. USDM,

16:07the product behind the economic model. So, let's talk about USDM for just a minute. Blues Guy says, "Mega mega." There you go. Everything good is God. Praise the Lord Jesus our king. Our king of kings, much love. Amen to that, Blues Guy. Welcome in. Or I should I should say thank you for being here. I don't know why I said welcome in. Anyways, we have USDM. Now, this is your stablecoin or your dollar-denominated

16:35stablecoin. And it is using the Athena infrastructure. So, what's the takeaway here? It's a stablecoin. USDM, I've said this before. When you see a stablecoin, you should, in a lot of instances like USDM, be able to tell what network, what project, what ecosystem you are dealing with, right? And that is super helpful for a lot of reasons. Maybe you're trying to send money somewhere. But

17:05Athena's infrastructure is built into this, and that is good to know. It's connected to Athena's infrastructure when it comes to the liquidity behind USDM. So, at introduction, USDM volume one used USDTB rails with reserve primarily in BlackRock's Biddle Treasury fund through Securitize alongside liquidity stablecoin for redemption. All right, well, this just gave us a few more clues. So, we already had Athena

17:39and it has a connection to that we just went over. But, when it was introduced, it used this USDTB rails, right? With reserves primarily in BlackRock's Biddle Treasury Fund through so it so it was reserves BlackRock Biddle Treasury Fund. You should know what that is through a company called Securitize alongside liquid stablecoins for redemption and Securitize is something

18:08that we've seen in other deep dives here. So, it has a lot of connections. It's not completely just isolated on its own. Reserve assets can generate income. Mega ETH launch explanation connects that income to funding network operation and helping keep transaction fees low. And we've talked about the dynamic of fees. If you're an investor, you want them high. If you're a user, you want them low. There's a bit of a struggle here.

18:37So, the product behind the economic model, the disclosure also allows the collateral mix to change. Its original treasury back design should not be treated as permanent guarantee about every future reserve. The USDM Mega ETH the coin and ETH serve different purposes within side this ecosystem, a dollar asset, an economic token, and gas. Similar branding does not merge their balance sheets or make them one thing.

19:07Uh adoption, the numbers that earned their place. So, DeFi total value locked, right? This is total value locked in DeFi, which would be applications on the network or on Mega Eth, the product, right? And that's approximately 12.6 million. Not a lot of money, honestly. Total value lock measures assets deposited in tracked DeFi applications. I didn't know I was going to explain it. It gives context for the capital using those

19:36products. It is not chain revenue or token holder income. So, here's the biggest thing to take away. DeFi total value locked is not revenue, and it's [music] obviously not token holder income. Mega, the token circulating supply, approximately 1.13 billion, 1.1 billion out of a reported 10 billion. So, there's a lot to come out. When is that going to happen? That puts today's tradable supply in context.

20:02The remainder is not automatically in an immediate sell order, right? They're not dumping all those tokens that we know of into the circulating supply anytime soon. So, market cap approximately 52.3 million, fully diluted value about 463 million. These are not big numbers for this space, but it is very new. Market cap value circulating tokens, and fully diluted value applies the price to future reported supply. The gap is

20:32nearly ninefold. The market figures are a retrieved October 12th snapshot. So, a lot of the figures are from literally today, right? Yeah, cuz today is October 12th. So, business model and revenue snapshot. There are three economic layers here, right? We have the network fee, payments for using the execution network. That's what a fee is. USDM reserves are for

20:59economics, right? Income generated by the stablecoin backing and allocated under its arrangement. And then you have application economics, right? You have fees earned by individual apps, which need their own allocation rules. And it looks like D file armor, which is a good place to get numbers and information, roughly $2,275 in chain fees over the trailing last 24 hours. [music] It's not a lot of money. It just isn't. And that's what happens

21:28when you keep fees low. Now you're hoping that you built a useful product and that people are going to come use it. Right? At a high volume. So that number for fees can go up. And that is a usage fee measurement, not an audit on the foundation profit statement. That's just revenue fees. And app earning fees does not automatically send them to mega holders, right?

21:56Reserve income is also not interchangeable with gas fees. You see all the things and numbers that come up that are not equaling money for the holder of mega. The coin. The model needs a reconciliation of income, costs, foundation receipts, and repurchases. A collection of revenue labels is not yet an income statement. The actual route here. So you have USDM, the foundation and the receipts, mega

22:26market repurchases of the actual mega token, and then you have the foundation that accumulates mega token because they're the ones repurchasing it. The policy describes accumulation, not an automatic burner buy, right? So or hold, right? Um or holder payout. So the point is it's a buyback. And they're accumulating mega tokens, but we don't exactly know where those are going to go. What's up, struggle

22:55heart? I knew you'd be here. I told everybody you'd be here. Welcome in. Welcome in. Uh struggle heart, what's the token you want me to go over for you? Let's move on. So, Mega ETH publishes this policy, token value capture. USDM rewards received by the foundation fund mega repurchases. That creates a potential connection between stablecoin adoption and the token demand. So, the buyback is a good

23:27start, but what are they going to do with what they buy back? The relevant amount is what the foundation actually receives under the arrangement, rather than all reserve interest multiplied by some assumption about ownership percentage. Mega, the token, does not provide equity in the issuer or the automatic revenue distribution rights under the published white paper. A repurchase policy is therefore different from a personal

23:51claim on the foundation's cash. This review verified the published mechanism. It did not establish a complete current ledger of foundation token balances. What do we got going on in the chat? All right, cool. Caught up. So, the next evidence is measurable. Receipt dates, amount spent, tokens acquired, and their subsequent destination. The a mechanism deserves credit. Its economic scale still needs

24:23numbers. So, what have we learned? We've learned that there is repurchase and that those coins that are repurchased are held by the treasury. But, we don't exactly know what the heck is going on yet. A buyback creates demand when somebody purchases the token. Accumulation means that those tokens remain held, right? They're just holding them. Of course, burning means they're permanently removed under a verifiable

24:48mechanism. Mega ETH's published description emphasizes foundation accumulation. This autopsy therefore assigns no automatic burn credit. So, as far as we know, no burn. Holding purchased tokens can reduce available float while they remain held. Their later transfer or deployment would affect that, right? That low float. Repurchases also do not create a

25:16guaranteed price floor for the sellers. New supply, changing demand still exists. So, again, without the burn, it's not doing a lot for deflation of the token. The analysis should follow the destination of the tokens, not stop at the announcement of the purchase. Flux. Let's talk about Flux. And I believe I bought some Flux a long time ago. I wonder if it's the same thing.

25:47How the reward mechanism works. So, Flux lets eligible par- participants commit Mega and participate and participate in milestone-based distributions. So, this is what Flux does within the ecosystem of Mega ETH. Uh commitment maturity increases over time. >> [music] >> When an improved KPI milestone is reached, eligible positions share the allocated rewards according to the

26:13program's rules. Those rewards are Mega from the reward allocation. They are different from the share of USDM income. So, they're not the same thing. And the term states that locked tokens are not used for network validation and do not create unconditional reward entitlements. The lock also limits what participants can do with their tokens. A commitment position, a future sequencer stake, and an ordinary wallet balance should

26:43therefore receive different descriptions and probably different allocations of those payouts. Now, I posted this in the what I want people to see tab in the Discord. Hopefully somebody saw it so that you could have a minute to make yourself somewhat familiar with this before we got into it. And I'm going to try to kind of do that on a more regular basis. Especially with some of these topics, they can be a little tech heavy. So USDM

27:09buyback policy, you have the foundation, the USDM receipts, then that triggers the market purchase of Mega the token, and then that tokens that are purchased go to the foundation who accumulates them. The Flux reward program is different. You commit the Mega tokens and build maturity over time. Approved KPI milestones happen when they're reached eligible Mega reward allocation, you will get rewarded when you reach the

27:41milestones. [music] So reward quantity and economic return. So suppose a holder has 1,000 tokens and receives 100 additional tokens. Their token count increased by 10%. That does not establish a 10% dollar return. The market price, circulating supply, and other holder rewards also matter. Your tokenomics. So if distribution expands, everyone's holding proportionally receiving tokens may

28:15preserve relative ownership rather than create additional economic value. Meaning what you're getting might just kind of keep you where you are and not necessarily increase your value. KPI gating can improve incentives by connecting releases to achievements, right? Those milestones. It does not make the releases disappear. The important comparison is between new supply and the demand supported by the

28:44achieved milestone. A network can improve while the token supply burden also increases. That's emission. Both statements fit in the same room. And here we go. So, we have the tokenomics and maximum supply question. You have KPI rewards, about 53% community, 15%, uh venture investors, that is 15%, team and advisors 10%, and foundation and ecosystem 7%. So, a lot of it goes to these KPI rewards.

29:18Of course, we have our 1.13 billion circulating supply to your 10 billion maximum supply, and that's about 11% vested. The reported maximum supply is, of course, 10 billion. The current official website presents the rounded allocation. It's just telling us what that what that graph already showed us, right? The white paper gives more precise percentages, and the website notes possibly adjust for undelivered

29:47allocations. More than half of the supply is associated with the KPI rewards. Maximum supply limits the overall envelope. It does not eliminate increases in circulating supply. So, it sounds like if you really want to earn with this this KPI rewards with Flux is really where most of the coins are allocated to. That's pretty cool. So, a cap supply can still dis- can still dilute the market's available float

30:15considerably, especially when not many of the tokens are out. All right. Everybody pause, take a break. Let me hit this protein shake, and who's still here with me? I hold a little bit of mega ETH. I know Melissa does. Anybody else out there holding some mega ETH? All right. So, unlocks concentration and effective flow. The official page describes different

30:50distribution arrangement. Fluffies? Fluffies? What the heck is that? That must be flux, right? Remaining allocation vests. I don't know why it says fluffies. What does that mean? Um remaining allocation vests over 6 months following its April 30th delivery. Certain locked public sale allocations are scheduled for April 30th, 2027.

31:20So, it looks like we have some tokens coming out, but how many? The white paper describes a team cliff followed by one year vesting. Those are different schedules. They should not be collapsed into one next unlock. KPI distribution adds another source of supply governed by milestone achievements rather than only a calendar. Rather than it just being a certain date. Uh what's up, reliable J?

31:48So, rather than a certain date unlocking, there are certain milestones. Maybe it's market cap, maybe it's volume. I don't know what it is. Early allocations can also matter for reward participation and eventual market supply. Vesting restrictions, commitment restrictions, and economic ownership must be tracked separately. This review has not attributed the largest wallets to their ultimate owners

32:17or verified a complete recipient level future unlock schedule. It does not invent one simply because you want one. Because that's not really part of the token autopsy. So, the published white paper names Superior Performance Limited as token issuer >> [music] >> under the MegaETH Foundation. So, you have the Mega ETH Foundation, you have

32:39this superior performance limited as the token issuer. Its issuance and distribution role is different from buying equity in a development company. The relevant execution evidence includes an operating network, a completed Mega launch, and an accessible reward program. The governance disclosure matters just as much. The foundation currently defines and attests KPIs. Later phases propose community control

33:12and Oracle-based verification. In other words, performance-linked rewards persistently contain an element of administrative judgment through the governance. The important oversight question concern published targets, consistent attestation, and changes to definitions, and the authority to approve distributions. So, there's governance going on. That's basically what we're saying if you didn't get all that. So, backing and reputation can

33:40help a project attract builders. They do not transfer signing authority to public holders. The governance roadmap receives credit as a plan. [music] The implemented controls earn a different kind of credit. Here's your links if you want to go check them out. So, competitive mode. How does it stack up against its competitors? And it's a really interesting because you would say that layer twos are a competitor, but it's

34:07doing something different, so that moat, that difference between them can matter a lot. Mega ETH candidate moat combines low latency. Low latency is very important for what they're doing. Execution optimization, so that specialization, and application designed around that responsiveness. So, it's highly specialized for use case. A technical advantage becomes more durable when developers depend on it and there's

34:37not a lot of other options that do the same thing. Users prefer the experience and liquidity remains useful without constant subsidies. So, users prefer the experience and liquidity remains useful without constant subsidies. [music] And you know, a lot of these projects are subsidizing. Tech is well-known for subsidizing things for a very long time before you actually get

35:06a working product that generates money. Look at robotics, like stuff like that. Or even a lot of your AI. So, speed also has competition. Base's flash blocks work shows that other EVM networks improve responsiveness. So, Base is doing its own thing to be faster. Arbitrum time boost documentation describes actioned express lane access, making it faster. Showing that access base monetization is not a unique mega ETH idea. And look at who it's showing

35:42as its competitor, layer twos on Ethereum. So, the moat must therefore extend beyond a benchmark. Reliability, developer tools, distribution, and economical useful applications. The engine can be impressive while the customer has several other vehicles available to them. So, then we get into security and decentralization. That's hilarious. Blue guy's saying mega ETH like it's some kind of hardcore

36:14heavy metal band. Yeah. Oh, was that actually a Was that actually a mega band? Isn't it But you left out the A. I think the original one has A. Anyways, that's neither here nor there. Let's talk about the security and decentralization, right? So, layer 2 B currently places MegaEth in its other category and reports materials additional trust assumptions. It's assessment identifies restrictive

36:44challenges challenge participation, right? External external data availability verification gaps and upgrades without [music] an exit delay. That is a current configuration assessment, not a prediction that an exploit will happen. And what we're saying here is although it's built to solve kind of the same problem as >> [music] >> a layer 2 on Ethereum, it's not built as a layer 2 on Ethereum. Although it's

37:10compatible with Ethereum and it's trying to solve the same problem with a different way of doing it. Okay, so it is spelled like that. 1 million lifer sig not financial advice. Play dogs, what are you talking about? Is he going on Is he taking a million-dollar trade or something? All right. So, Ethereum connected settlement does not automatically remove every risk in the operator proof system

37:51or upgrade controls and external data layers. A responsive application and a security exit path solve different problems. The meaningful improvement would be independently verifiable software, broader challenge participation and stronger data verification and enforcement upgrade protections. Those changes must be checked in deployed configurations. Talking about security.

38:22Now, let's talk about decentralization, dependencies, bridges, and the route out. So, if you're in the ecosystem, how do you get out of the ecosystem? So, the system relies on multiple layers here. We have Ethereum settlement, EGN data availability, >> [music] >> network operators, proof of infrastructure, proof infrastructure, and the service

38:46application use. Said it like it was its consensus. So, US DM adds reserve, issuers and redemption dependency. [music] A stable coin's market liquidity and its redemption process are related but distinct. Mega ETH own documents a force inclusion route force inclusion route through Ethereum. So, everything goes through Ethereum with a stated maximum inclusion delay of 12 hours.

39:16Wow. This is a censorship-resistant mechanism. It is not a guarantee of an instant withdrawal or liquid execution during stress. Exchange volume also differs from order book depth. This review has not measured the slippage of a specific exit size. An exit deserves analysis before a dashboard buy button receives all the attention. And this is definitely coming directly from megaeth.com. So, network operators cost money.

39:46Reserve income depends on a reserve base, its yield, and the arrangement allocating that income. A sustainable model needs income sufficient for operations, ecosystem support, and the token program without depending indefinitely on incentive releases, subsidy. >> [music] >> So, a treasury holding mega tokens also has exposure to its own token market value. A large token allocation is not

40:16the same as a large liquid cash revenue. The missing financial evidence is a consolidated view of operating expenditures, liquid runway, and foundation receipts, and repurchase spending. No audited runway estimate is assigned here. Funding a network requires more than having its token available inside of the treasury. Price the economics, not the clock. Caught up on the chat here. So, again, valuation. Price to economics, not the

40:49clock, not the time. So, the retrieved market cap and fully diluted value snapshot shows that the full supply valuation is materially larger than its circulating supply. Basically, max supply bigger than circulating supply. So, that makes future demand and supply important. The token can look small by market cap while its eventual supply carries a large valuation burden. An illustrative model makes the business dependency clear. 100 million of

41:21qualifying USDM balances times a hypothetical 3% annual net foundation reward equals about 3 million annually. These are teaching assumptions, right? This is a not a metaphor, but this is an example, not the current balances of anything. A smaller balance, lower rate, or changed allocation would change the results, of course. Comparing fully diluted value with a single day of chain fee would miss this separate income

41:51stream and overstate it, certainly. Catalyst and the evidence required. So, at the present, you have operating networks, mega token launch, the flux program, established USDM repurchase policy. Planned in the future, or so they say, approximate markets, proximity markets. It's a weird word. Uh mega operators

42:18taking for sequencer rotation and later community and Oracle KPI oversight. That's where they're hoping to go. So, application adoption cuz this is catalyst, right? What is moving it forward? Well, we have returning users and activity that persists after incentives. For adoption, you have to have that. A lot of incentive, a lot of reward, a lot of times, a lot of subsidy. It's all comes down to as you start to wean them off of all these free

42:46rewards or subsidy and stuff. Can the network really be valuable? USDM growth, right? That's the stable coin. Durable balance, reserve transparency, and identifiable foundation receipts. Then we have the buyback reporting. Now, remember this is a burn, not a buyback. A reconciled history of purchases and purchased token [music] custody. All right. So, we have this proximity

43:19markets. I don't know why it seemed like such a word weird word to me for a minute. It's a normal word. So, we have reserved servers access near the sequencer would sell low latency access to traders, right? That is a market. Block space is a market. So, the market that they're creating and then selling is this low latency access. The published design combines auctions, mega ETH token locking, or both

43:52depending on their tier. A synchronized data feed would complement that access. This would [clears throat] give mega an access related use beyond its rewards. That would be very bullish for use case and utility. Sequencer rotation, operators would stake mega to participate in sequencing across regions with selections based on stake and performance and penalties for faults. These are These are all things that [clears throat] would really move

44:22the needle on value of the mega ETH token, but they're all planned. They haven't happened yet. We also have operator participation and independent verification still require separate checks. These are specific designs, not current revenue assignments to the model. So, deployment, access rule, and actual custom customer demand are evidence required. Security maturity, changes that independent researchers can

44:54verify in software and contracts. That's what that means. These catalysts have different evidence tests. A new app announcement does not establish retained users. A road map does not establish operator decentralization. The scoreboard needs completed actions, not promising to improve is a useful opening sentence, not the result. So, we can't go based off of, once again, what they've said they might do in the future. We're going to judge them on

45:22what they do right now. So, what is the bull case for mega ETH, the token? Low latency applications find durable demand, which I could see them having durable demand. Especially as pointed out, [music] think about low latency, very quick feedback, and very quick execution. Um not to be confused with finality necessarily, but in things like trading, that would be highly important. USDM,

45:47the stablecoin adoption, creates meaningful foundation income, and that causes meaningful repurchases to become measurable. Additional mega uses uh uses launch, right? So, we have other uses for Mega the token and security controls begin to mature. The base or the middle ground, right? The more neutral is that the network attracts a small useful ecosystem, but the ecosystem remains very modest.

46:16Rewards and unlocks keep expanding supply while adoption grows about unevenly. I was going to say evenly, but no, it says unevenly. So, this is very much the middle ground here. Is that the network has some use, but it's not widely needed. So, you have a very specialized niche that uses it. And then it's rewards and unlocks, they keep expanding supply while adoption grows unevenly. Then of course you have

46:50your bear case. Incentive-led activity fades. The rewards reserve economics weaken and demand fails to absorb those releases, meaning they don't have enough pressure buying up all the tokens that are coming in. Dependence on concentrated controls remains unsolved or becomes consequential. These are conditional scenarios, not probabilities, right? We're just laying it out. The central variable is whether useful

47:16activity grows into a sufficiently large verifiable economic engine for the token. So, what is it doing right? What is it doing wrong? Melissa says, "I remember panzer dogs." Thanks, Kendra. So, you have green flags and red flags. So, what are they doing right? So, a clear performance-orientated product decent. Being highly specialized and niche can be the winning sauce and it could be why nobody knows who you are and it's irrelevant. It can be both

47:47and it's usually one before the other. So, distinct mechanisms for execution, stablecoin economics and token rewards. A published route from Foundation USDM receipt receipts, right? To mega purchases. That's great. Milestone linked rewards can be examined against actual outcome. Red flags are large gaps between circulating and maximum supply. That should always, if you know your tokenomics, if you've been raising your crypto IQ, no matter what

48:16token you're looking at, a large gap should catch your attention. Now, I'm not telling you what you have to think about it. It's not always such a bad thing. In a brand new project, it's actually quite common. The question is, how fast are they dumping those coins out and when? So, additional token uses remain planned, but not actually executed. And the foundation currently controls KPI definitions

48:41and attestation. Complete current buyback accounting, liquid runway, and beneficiary level ownership are not established in this review. The product earns attention. The token remains a speculative economic and execution case. So, for the token itself, we kind of need a lot >> [music] >> of what they plan to do in the future to happen, right? So, each community selected

49:08project receives the same distinction. [music] Product, the problem solved. We're just defining a few things here, right? What is the product, right? It is the problem solved. Who uses it and why they return. And the business is who pays, what costs money, and which entity receives that income. The token is, of course, the right demand mechanism, distribution, and future supply. For mega use token

49:33activity alone is incomplete evidence. The analysis needs the connection from useful application to the USDM related income, then an actual token purchase or other implemented demand. A burn would really be very useful here. So, the same standard applies to a popular community pick and a project [music] nobody particularly likes. Popularity is useful for choosing the discussion. It cannot write the categories rationale.

50:04So Mega ETH lands I think maybe the lowest score out of everything that we've done. And just to be 100% clear, I own a tiny bit of Mega ETH. It is highly speculative, it's highly new. That newness sometimes can be good for speculation inside the market, which is just a lot of retail throwing money at stuff, right? Not so much the big players. So it can mean a little bit, but not a lot of it. Also

50:33the things that are really going to matter for the Mega ETH token are coming off in the future. But when they happen, price will already be up and your gains will be different. So I've chosen personally to grab a little bit of this coin and hold on to it for a while. And we'll see how quick they actually do what they say they're planned to do and how much it matters for the token. And then of course, if any big institution or

50:59anybody else, uh venture capitalist or anybody decides to come in and speculate as well, that would be good for our bags. But just purely economics of the project giving you value into the token, it gets a very low score. I hope that makes it very clear where we stand on this. So you have utility and adoption, 14 out of 20. Token value captured, 12 out of 20. [music] Tokenomics and supply, 8 out of 15.

51:28Competitive moat, probably one of the higher scores here out of all these categories, 11 out of 15. It gets a good competitive moat because it's doing something that a lot of things are doing, but it's doing it completely different. So security and decentralization is a three out of 10, that is a very bad score. And catalyst and execution is seven out of 10. Risk and unanswered [music] questions a four out of 10. It is just

51:51scored very low across all of our different things here. And at some point all this stuff will be organized in the Discord for you to read. Link to our free Discord in the chat where you can find us when we're not streaming. Just want to get to where we have our chart. Here we are. Ave, the only thing to pass the token autopsy. Sky coming in very high hype, Pendle, Tron.

52:19And again, these are out of what we've done [music] so far, right? But let's see where the tonight's fits in. Wow, it is it is the lowest ranking one that we've done. I was a I was a little bit surprised by that, honestly. HBAR is the next one up, Ando, Athena, Sui. But anything under this, you know, probably a what? 64 region is

52:45speculative. Anything above it gets a watch verdict. And we have one passing token, which is Ave. So, Mega token is today's edition. Earlier verified grades can carry forward unchanged from the October 8th record. Those projects have not been rescored or anything like that. So, all the scores that you're seeing are the scores that we gave them at the time that we scored them, right?

53:14All right. So, in conclusion, Mega Eve has a useful engineering proposition making demanding blockchain applications feel responsive, which is it's a it's hard when we're just talking about the token to like undershadow or understate how useful the product is when they've got it all working properly. Games would high-level games would need

53:42something like this. But, what happens if Base does it almost the same thing? Or Arbitrum. Although they're not like a different design product, doesn't really matter. The market cares about what works, what works well, and what is most integrated with everything else. What is the easiest to get into and use across multiple different things. Mega ETH has that going for it with its EVM compatibility.

54:08But, their decision to take another approach to solving the layer two issue is rather going to be highly rewarding or just another blockchain experiment. That's what we're going to find out over time here. And that is the conclusion. Wow, we went through that pretty quick. I've got to take a day pretty soon and organize all this stuff, put it in the Discord. So, let's hop over

54:44to X, and let's take a look at a few things, right? So, Paper Trade found a way to make losing money feel productive. You get a receipt. Launched October 10th on Hyper EVM, up 1,000 X on BTC up to 1,000 X on BTC and ETH. No order book. Every trade is against one USDC pool that starts at zero and fills from the traders' losses. That's crazy. So, lose $1, mint 100 paper while the pool is under 2 million.

55:29Stake paper, collect 1% of the realized P&L plus whatever the pool holds above 5 million cap. Day one, traders down $18 million. Stakers paid 12.6 million. The yield is in liquidation feed. So, you make it so people can put on ridiculous X returns. Uh they're all going to lose their money. That goes into the pool and makes its

55:59way to the people staking paper. Seems like the most profitable thing would be to buy paper. But how long are people going to simply lose, right? How long are they going to simply lose for? Then the price feed, paper trade fills at Hyperliquid's best bid offer midpoint. Per the block, one one wallet nudged ETH thereabout .12% and netted 1.8 or 1.28 million. The team

56:33says that was not an oversight in the mechanism design. It is a tightening open interest cap, reassuring in its way. And then it has like a mini token autopsy in here. Very interesting. Free land, they said. The deed cost extra and the token doesn't exist yet. There's some good news that I'm putting out here. I love it. I've enjoyed really getting into a lot

57:05more nitty-gritty on a daily basis of things that [music] most people probably never know happened. But really accumulates over time. Absolutely staying positive doesn't always mean life is easy. Couldn't have said it better. And this is welcome to the Twitter doom scroll, the X doom scroll. Just giving a little bit more time before I hop off. Thought we went through that pretty

57:41quickly. I mean, mega ETH is a very specific thing. It doesn't have a ton of different stuff to go over. Blur is shutting down. Blur NFT protocol. We're seeing a lot of things go out. Bottom of the bear market type vibes except for we got a nice bounce. And we're still we're still getting a lot of things going away. What was it? Blast went away.

58:11What was the other one that recently came out? I should know it. I'm just [music] tired. A some Sunflower Land. That's pretty funny. See, Kaspa always posting a lot. KCC-20 is about making it easier for wallets and apps to work with token on Kaspa. It proposes a shared way to describe who owns the tokens, how many they hold, and

59:11how transfers work. It gives build builders a common format to follow when their wallet and app reads token information. KCC-20 is now in last call, its final review before becoming finalized standard. All right. I mean, they always seem like they're working on a bunch of stuff. I I feel like I never see it really come out, but I don't know what to do with that. Stop picking on the Cybertruck.

59:51Is that what was going on here? Yeah. So weird. Who would just run somebody off the road because it's a Cybertruck? That just seems like such a weird thing to do. I wish I could just click a button and only get crypto-related stuff. Let's see. What does Avalanche have to say? Avalanche says stablecoins are opening the door to blockchain for major financial institutions. That that much I do agree with.

1:00:23What is this? Everybody's in a rush to copy Pokémon. This is why I like Lumina in a big way because it did its own characters. Like it did its own thing, and it did it right. I'm not saying this is a bad game. I'm not saying that at all. And maybe this is just an old game. I don't know. I I know a lot of the Pokémon game. I've never seen this one. Whoa, I didn't mean to show that. Whoa.

1:00:58Just trying to look at some DeFi news. Well, check this out, right? Looks like a board game. This is called Kendra Party. It's now live in the Kendra Arcade. Got four heroes, three boards, 21 mini-games, one crown. This is cool stuff. It reminds me a lot of what we were playing recently, and I think it's a play on like Mario Party. Could see it honestly being highly

1:01:29popular. All right, guys. Let's go take a look at these crypto bubbles real quick, and then I'mma hop off. Yeah, everything's down. Makes sense why there's only a few OGs here tonight. What is the market doing to us? Matter of fact, let's go look at Bitcoin. Hopefully Yeah, CoinGecko's overcapacitated. Come on, CoinGecko.

1:02:06Don't be doing this to us. So, let's go to the 7-day. Uh let's go to the monthly. 7-day's a little too zoomed in. Nice pump. As we said, up to about 87,000. Since that pumped to 87,000, we've been as low as 80,006. Then we had this nice rally back to 84, and we're back down here to 82. We really just want to stay like above 825, above 835,

1:02:53and we are in good good placement. Let's see, it's only Monday. You know they false move Monday. Means we should pump for the rest of the week, but it's not a guarantee. But it happens more often than not. And then, of course, let's look at our Fear & Greed Index. Where is it today? 57. We needed a cool off. Uh this doesn't worry me at all. It'll worry me if we don't get back above like 82 5, 83 5, and continue to

1:03:23move up within the next couple of weeks. We could use a week, 2-week cool-off. We really, really could. But, the problem is that cool-off can be more tippage than we would like to see. And then, when it's ready to turn back on, you'll be amazed at how fast it can pump again. This is the game. So, you know what it is. Stay Underground, stay crypto. Make sure you're in our free Discord, and I will

1:03:48check you in the next one. Check you out. Let's see what we're going to be doing tomorrow. Which one do we do tomorrow? Let's do Let's do VVV for Reliable J tomorrow, and then we will do Flare. So, Tuesday, we're doing VVV, Venice Token. We're going to do a token autopsy of VVV. I have another friend who really likes that token. He's holding a little bit of it. I'll have to let him know about that.

1:04:15Uh Reliable J with those custom emojis. It's been a fun one. Uh just an announcement since mostly my OG's are here. Obviously, I just had a child a couple weeks ago. Not me, my wife. But, got a lot going on. We're going to get back to some regular stuff here with the gaming stream after my other stream with the news and everything is going to be coming. So, >> [music]

1:04:36>> we're going to be really gearing up. The market's going to I'm I have a feeling going to continue to get hot over the next couple of months. Not exactly sure how many weeks here before I hit the button on that, but I think it's going to happen sooner than later. Otherwise, 8:30 p.m. New York time, 10:00 p.m. on Saturday, as you'll find me here with a token autopsy. To me, the most highly valuable thing that I could bring to you right now. What tokens have a clear

1:04:59connection to the ecosystem with a buyback, a burn, something that's really going to help it catapult in value, to say it that way. Underground Crypto out. Stay underground. Stay crypto.