megaeth's approach to ecosystem building doesn't work because the bigger a project becomes, the stronger their incentive is to leave the chain. This sends the ecosystem to zero in the long term since they will only be able to retain the worst projects they incubated and not the moonshots (Not bullish on GTE or any megaeth projects personally). It's an issue of basic human incentives. Once projects reach a certain scale, they naturally (and very validly) question why they should allow megaeth to capture and monetize their orderflow through sequencer fees when they could retain that value themselves. Another big problem is when a project relies on a counterparty (megaeth) that isn't live to ship their own products. This is extra execution risk that isn't even in your control (bearish megaeth, no project wants this) An extra problem with building on megaeth is that your token's TAM is constrained by megaeth's token market fit (This probably won't be the case in a couple years, but now it's pretty much a thing). This is not looking good for most L2's. Performance, which I guess is their main selling point, is just a commodity now. Why tunnel vision building only on megaeth as a serious builder? The lifestyle of a megaeth project should be something like the following: Get incubated -> Bullish stage, everyone's happy here because the relationship is quite symbiotic. Project's need to raise and megaeth needs ecosystem projects to raise to make it look like they're succeeding. Both parties benefit Projects start building their own relationships in the industry and realize that they might not need Megaeth. Some of these projects, especially the ones that have gained traction with investors, will realize that if they build on Megaeth, they'll always be capped by the success of the chain's token in a way and face extra execution risk. If the chain does badly, they'll do badly Bad projects that have no momo w/o megaeth will just remain on megaeth, so the chain experience won't be particularly interesting. They'll just retain the 'worst' projects It's quite funny because it very much mirrors Megaeth's evolution. Megaeth was incubated by ABCDE, which is an asian fund but they've slowly pivoted away from this association. You can also see this phenomenon on web2 incubators. The more a product is successful, the less important it is if it's a YC company or not. Same thing applies for megaeth. No serious entrepreneur wants someone else to capture significant upside on their project unless they get something very tangible in return. I guess for MegaETH this is early stage support, which works if they were an incubator but doesn't really work if they're a blockchain with a token megaeth is the next scroll, gte won't be the only project to leave