Consensys-backed Ethereum Layer 2 scaling solution Linea has confirmed its LINEA token will have a total supply of 72 billion tokens.
This figure notably exceeds the total supply of many other established Layer 2 tokens, drawing attention within the cryptocurrency community.
Approximately 9% of the total token supply, allocated specifically for an airdrop, is designated to reward early users and adopters of the Linea network. Specific details regarding the distribution mechanism and eligibility criteria remain unconfirmed.
The substantial token supply has prompted discussion concerning potential market impact. Observers note the large volume could create significant selling pressure immediately following the Token Generation Event (TGE), depending on the distribution timeline and token unlock schedules.
Further debate centers on whether such a high initial supply aligns with long-term decentralization goals or signals potential concerns about token value dilution.
While Linea benefits from the credibility associated with its Consensys backing, key questions regarding the token’s sustained utility beyond the airdrop incentives and its future role within the Linea ecosystem are yet to be fully answered.
Effectively managing token lockup periods and implementing thoughtful distribution strategies appear critical for mitigating risks associated with the large initial supply.