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 put up, the workforce stated that configuration errors and rate-limit points brought on 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 completely signed Secure multisig transaction — ready for a later cap enhance — 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 had been spamming refresh on the Pre-Deposit Web site and had been in a position to catch the random opening time,” the protocol stated.
MegaETH in the end froze deposits at $500 million and scrapped plans to broaden the increase to $1 billion. A retro and a withdrawal possibility might be launched shortly.
“At no level had been belongings in danger, however that doesn’t matter; we anticipate greater of ourselves and there aren’t any excuses,” the workforce 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 had been much more crucial. AzFlin, a developer and DAO founder, argued that the errors might 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 public sale, 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 non-compulsory one-year lock-up that offered a ten% low cost.
The public sale closed on Oct. 30, in the end drawing greater than $1.3 billion in commitments and turning into one of many yr’s most crowded raises.
As a result of contributions far exceeded the cap, MegaETH stated it will depend on a “particular allocation mechanism” to find out the quantity every participant in the end receives.
MegaETH is constructed by MegaLabs, a workforce backed by main business figures together with Ethereum co-founders Vitalik Buterin and Joe Lubin.
Following its testnet launch in March, the undertaking is now focusing on 100,000 transactions per second with sub-millisecond latency. The MEGA token is about to launch in early 2026.
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