Linea’s newly launched token incorporates native ETH staking and transaction fee burning, establishing sustainable economics for its Ethereum Layer 2 solution. The model promotes decentralization and strengthens network security while pioneering economic mechanisms for scaling ecosystems.
Tokenomics allocate 85% of tokens to ecosystem initiatives such as developer grants, targeting community growth and long-term engagement. This strategic distribution aims to accelerate adoption and platform development through incentivization programs.
The protocol implements a deflationary ETH burning mechanism, permanently removing 20% of transaction fees paid in ETH. This feature contributes to Ethereum’s broader economic scarcity while aligning with Layer 2 sustainability objectives.
Native ETH staking requires users to stake ETH as security collateral, enhancing network protection while attracting liquidity. This design is expected to significantly increase total value locked (TVL) across Linea’s ecosystem.
Backed by ConsenSys, Linea enters a competitive Layer 2 market dominated by players like Arbitrum and Optimism. The token distribution reserves 15% for the ConsenSys treasury under a five-year lockup, ensuring alignment with community interests during development phases.