The organization behind the Ethereum layer-2 network MegaETH, known as MEGA, has reduced its workforce by 20% following a strategic reorganization. Co-founder Shuyao Kong confirmed that the layoffs impacted staff members who were instrumental in building the project’s blockchain, wallet, and ecosystem support, though she noted that the core engineering team remains intact.
Strategic Shift to AI
The workforce reduction coincides with a pivot toward developing artificial intelligence services on the MegaETH network. The organization has committed $30 million to this new initiative, which includes the development of a public inference market slated for launch in December. This market aims to provide users with access to competing AI service providers while addressing critical concerns regarding data handling and model transparency.
Market Context and Future Outlook
While the layoffs were not explicitly linked to the new strategy, the move reflects a broader trend of crypto-native firms integrating AI capabilities to diversify their offerings. The founders, Yilong Li and Lei Yang, have outlined a vision where decentralized infrastructure supports AI service verification, potentially setting a new standard for how users interact with AI agents. The organization remains focused on its long-term roadmap despite the current restructuring efforts.
— Shuyao Kong, Co-founder of MegaETH
Key figures and terms involved in this transition include:
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20% workforce reduction
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$30 million investment
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MegaETH layer-2 network
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AI inference market
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Reorganization of core teams
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Development of AI-focused products
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Public inference market launch in December
