ConsenSys Ethereum L2 network Linea announces LINEA tokenomics: innovative ETH-based model, emphasizing ecological synergy.

The Ethereum Layer 2 network Linea developed by ConsenSys officially released its LINEA tokenomics framework on July 29, introducing a unique model that is deeply tied to Ethereum (ETH). This model clearly distinguishes the uses of tokens: ETH will serve as the network's sole Gas token, while the newly created LINEA token will focus on ecosystem incentives and fundraising. LINEA is not used for paying Gas fees or governance, and its value capture mechanism is designed to enhance the monetary premium of ETH and link its own value to the real usage of the network. This article will detail the Linea token distribution mechanism, core economic model, and its significance for the development of Ethereum's Layer 2 solutions.

LINEA Token Positioning: Non-Gas Fee, Non-Governance LINEA disrupts the typical L2 token model by separating utility and value capture to achieve its "Ethereum-based" vision:

• ETH Exclusive Gas Token: Network gas fees are paid solely using ETH.
• Dual Destruction Mechanism: 20% of the network transaction fee revenue (ETH) will be burned, and the remaining 80% will be used to purchase LINEA tokens on the open market for destruction. This design aims to:
  • Strengthen ETH currency premium: Directly burn ETH to reduce its circulating supply.
  • Binding LINEA Value with Real Use: The demand for the destruction of LINEA is directly tied to the network transaction volume and fee income, with its value deriving from the actual activity level of the ecosystem.
• Non-Governance Token: LINEA will not be used for protocol governance. The strategic decisions of the Linea protocol will be managed by a council called the "Linea Consortium." This consortium consists of Ethereum-native projects including ENS Labs, Eigen Labs, and SharpLink, and is affiliated with a non-profit entity in the United States.

LINEA Token Allocation Details The total supply of LINEA Token is fixed at 72 billion pieces, with the distribution ratio as follows:

• Ecosystem Growth Fund (85%): 75% of the total amount (i.e., 5.4 billion coins) will be gradually deployed over 10 years.

  • Initial Focus (12 to 18 months ): About 25% (13.5 billion coins) will be used for community development, developer support, exchange integration preparation, and liquidity provision.
  • Long-term investment: The remaining 50% (27 billion coins) will be invested in ecosystem infrastructure, public goods funding, and protocol development.

• ConsenSys Treasury (15%): Accounts for 15% of the total supply (10.8 billion coins).

• Token Circulation: At the Token Generation Event (TGE), it is expected that 22% of the total supply will enter circulation. Key Point: No tokens will be sold to investors or employees.

  

Early User and Builder Incentives

• Early User Airdrop (9%): 6.48 billion LINEA will be allocated to early users and will be fully unlocked at TGE. Eligibility is based on the Linea XP points system and on-chain activities that reflect real usage and ecological participation.
• Strategic Builder Allocation (1%): 720 million LINEA will be rewarded to key, rigorously selected long-term strategic partners, such as important decentralized applications (dApps) and infrastructure providers.

Core: Ethereum Collaborative Development LINEA has not positioned LINEA as a governance tool, but rather as an "economic coordination tool". The distribution of tokens will be based on participation rather than capital, targeting users, builders, and ecological contributors. This model emphasizes decentralized growth and long-term public goods financing, echoing the spirit of Ethereum's launch in 2015.

LINEA Ecosystem Status According to DefiLlama data, Linea currently has a total locked value (TVL) of $155 million, with over 350 applications deployed within the ecosystem. Recent important updates include:

1. Native USD Coin (USDC) integration.
2. Reached a fee subsidy cooperation with Layerswap, significantly reducing the cost for users to cross-chain to LINEA.

Conclusion: The tokenomics model of LINEA represents a bold innovative attempt in the Layer 2 track, with its core being a deep binding of the value of Ethereum (ETH) and the construction of a unique "dual destruction" value capture mechanism. By clearly separating the functions of Gas payment (ETH) and ecological incentives (LINEA), and closely linking the value growth of LINEA with the actual usage of the network, LINEA aims to create sustainable synergies for the Ethereum ecosystem. The LINEA token, as a purely economic coordination tool, will depend entirely on the adoption rate of the LINEA network, transaction activity, and the overall prosperity of the ecosystem for its long-term value. Investors need to closely monitor the progress of its ecological development and the unlocking circulation of the token.