SKN | MegaETH Parent Cuts 20% of Workforce as Organization Expands AI Strategy

Key Points

• MEGA, the organization behind Ethereum layer-2 network MegaETH, has reduced its workforce by 20% following an internal restructuring.

• Departures affected employees involved in building the blockchain, wallet, ecosystem support and communications operations.

• The restructuring comes as the organization expands its focus on artificial intelligence products and commits $30 million to the initiative.

MegaETH Restructures Workforce

MEGA, the organization behind Ethereum layer-2 network MegaETH, has reduced its workforce by 20% as part of a broader restructuring that has taken place over several months.

Co-founder Shuyao Kong announced the workforce reduction on Friday, explaining that the organization had reorganized its teams and brought together new capabilities. The changes resulted in the departure of employees who had contributed to the project from its early development stages.

The affected teams included personnel working on MegaETH’s blockchain, wallet, ecosystem support and communications. Kong did not disclose the total number of employees affected or specify when the layoffs took place.

She emphasized that the organization’s founders, early employees and core engineering team remain committed to MEGA.

The reduction represents a significant organizational change for a project whose development has relied on contributions across technical infrastructure, ecosystem development and communications.

$30 Million Commitment Supports AI Expansion

The workforce reduction comes as MEGA shifts greater attention toward developing products on the MegaETH network, including artificial intelligence services.

The organization has committed $30 million to the initiative, although Kong did not directly attribute the layoffs to the new AI strategy.

The expansion reflects an effort to develop additional applications and services on top of MegaETH’s blockchain infrastructure. Rather than focusing exclusively on the network itself, the organization is also exploring products that could connect blockchain-based systems with emerging AI services.

The scale of the financial commitment highlights the importance of the initiative within MEGA’s broader development plans.

Proposed AI Inference Market Targets Transparency

MegaETH co-founders Yilong Li and Lei Yang have outlined a proposed AI inference market in a project whitepaper.

The concept aims to give users access to competing AI service providers while addressing concerns about transparency and data handling. Two central issues identified in the proposal are whether providers actually use the AI models they advertise and how they manage customer information.

By introducing a marketplace for competing providers, the proposed system seeks to offer users greater visibility into the services they access.

The initiative also illustrates how MEGA is exploring potential applications that combine blockchain infrastructure with AI-related services. However, the whitepaper describes a proposed market rather than confirming that a fully operational product has been launched.

Organizational Priorities Shift Toward Product Development

The 20% workforce reduction marks a transition for MEGA as it reorganizes its teams and directs resources toward new capabilities.

The departures include employees who helped establish important parts of the MegaETH ecosystem, while the organization says its founders, early employees and core engineering personnel remain in place.

The next phase will depend on MEGA’s ability to advance its AI initiatives while continuing to develop the underlying blockchain network. Investors and ecosystem participants will be watching for further details about the $30 million commitment, the proposed inference marketplace and how the restructuring affects product development.