L2 Network Emphasises Ethereum Alignment with New Tokenomics and Staking Plans

Linea, the Ethereum layer-2 scaling solution developed by Consensys, has revealed key details of its upcoming token generation event (TGE) and airdrop. While the exact date of the TGE is yet to be confirmed, the company announced that 85% of the token supply will be allocated to users, builders, and the wider ecosystem. The remaining 15% will go to the Consensys treasury, locked for a period of five years.

The move is part of Linea’s wider strategy to align more closely with the Ethereum mainnet, as concerns grow that many layer-2 networks are diverting activity and fee income away from Ethereum.

No Set Date Yet for Token Launch

Declan Fox, global product lead for Linea, confirmed that the date for the token launch has not been finalised. However, he stated that the criteria for the airdrop would be shared up to a week before the event.

The airdrop is expected to be one of the most community-focused in the space, with the vast majority of tokens being directed toward builders and users actively contributing to the ecosystem.

New Staking and Burning Mechanisms Introduced

As part of its token launch preparations, Linea announced the introduction of new staking and burning mechanisms designed to enhance its economic alignment with Ethereum. A staking mechanism scheduled for launch in October will allow users to earn staking rewards even when bridging Ether to Linea. The ETH used in this process will remain productive, as it can also be deployed for DeFi activities within the L2 ecosystem.

“Linea is the only L2 with total Ethereum compatibility, and we wanted the economics to be as aligned and supportive as the technology,” said Joseph Lubin, founder and CEO of Consensys.

Staking rewards generated from the ETH will be distributed to DeFi protocols on Linea, boosting yields for active liquidity providers. Lubin described this approach as creating a “flywheel” effect, where increased liquidity drives more transactions and further capital inflows.

ETH and LINEA Tokens to be Burned

In a significant shift toward Ethereum-native principles, Linea will become the first L2 network to commit to burning ETH as part of its fee model. Specifically, 20% of all Linea transaction fees will be used to burn Ether, while the remaining 80% will go toward burning LINEA tokens, making the native token deflationary over time.

This dual-burn structure is expected to reduce the supply of both assets and deepen Ethereum alignment, further differentiating Linea from other layer-2 networks.

Growing Market Share and Building Digital Real Estate

According to L2Beat, Linea currently holds just 1.23% of the rollup-based L2 market, with an on-chain value of approximately $513 million. However, the team is focused on expanding its market share by positioning Linea as the best chain for ETH capital, especially as momentum behind Ethereum continues to grow.

Fox believes that Ether liquidity providers will find the best risk-adjusted returns by bridging liquidity to Linea. He also highlighted the role of Consensys’s broader ecosystem and MetaMask distribution in attracting more users and developers.

“This, combined with the ecosystem of Consensys and distribution of MetaMask, will further attract users and builders to come and set up home on Linea digital real estate,” Fox said.

Consortium to Oversee Ethereum Ecosystem Fund

As part of its long-term vision, Consensys also introduced a new Ethereum-aligned consortium tasked with managing the Ethereum ecosystem fund. The consortium will include members such as Eigen Labs, ENS Labs, Status, and SharpLink, a gaming firm led by Joe Lubin’s ETH treasury team.

Joseph Chalom, co-CEO of SharpLink, described Linea’s commitment to Ethereum as “crystal clear,” adding that the platform’s unique alignment could secure its role as a key part of Ethereum’s future.