ConsenSys’ Layer 2 network Linea has detailed a tokenomics framework centered on leveraging ETH exclusively for transaction fees, positioning its native LINEA token purely as an ecosystem incentive mechanism without governance capabilities. This design aligns with Ethereum’s foundational principles and aims to foster long-term ecosystem growth.
Under this model, ETH remains the only currency required for gas fees on the Linea network. LINEA tokens are not utilized for transaction processing or network governance functions. The token distribution allocates a significant majority, 85% of the total 72 billion supply, specifically towards incentivizing ecosystem development.
Conversely, only 15% of LINEA tokens are allocated to the ConsenSys treasury. Linea implements a dual-burn mechanism: 20% of the network’s Layer 2 ETH fee revenue will be permanently burned (EIP-1559 style), while the remaining 80% will be used to purchase LINEA tokens on the open market, which are then burned. This process creates a deflationary pressure on LINEA.
The core allocation, the Ecosystem Fund comprising 75% of the total token supply, will be strategically deployed over a decade. Its purpose is to support key growth areas including liquidity provisions, critical infrastructure development, and funding for public goods that benefit the broader Linea ecosystem.
Linea currently boasts over $155 million in total value locked and supports in excess of 350 applications, demonstrating early adoption momentum following its tokenomics reveal.