Linea pledges 85% of tokens to community, locks Consensys share for five years

Linea, a Layer-2 network built on Ethereum, has introduced a comprehensive roadmap to strengthen its integration with the Ethereum ecosystem, according to a July 29 statement shared with CryptoSlate.

At the heart of the plan is a new ETH-native staking system that enables bridged ETH to earn yield directly from Ethereum’s mainnet validators. This will be made possible through a native bridge, scheduled for launch by October 2025.

According to the statement, users who deposit ETH into Linea will not only be eligible for Ethereum staking rewards but will also benefit from DeFi incentives offered within the Linea ecosystem.

Linea believes this model will transform ETH from passive collateral into an active capital layer, unlocking new forms of on-chain productivity and incentivizing long-term participation.

Linea tokenomics

In preparation for its upcoming Token Generation Event (TGE) later this year, Linea shared details about its token distribution and fee structure.

According to the announcement, 85% of the total token supply will be committed to ecosystem growth. Of this, 10% is earmarked for early users, while 75% will be deployed gradually through a multi-year ecosystem fund.

The remaining 15% will be reserved for the Consensys Treasury and locked for five years.

Speaking on the tokenomics, Joseph Lubin, the co-founder of Ethereum, said:

“Linea is the only L2 with total Ethereum compatibility, and we wanted the economics to be as aligned and supportive as the technology. We’re building for the long term, we’re creating infrastructure that institutions can trust and easily work with, and that the extended Ethereum community can own.”

Meanwhile, Linea also introduced a dual-burn model that sets it apart from other L2s.

According to the statement, 20% of all net transaction fees will be paid in ETH and burned, an unprecedented move that embeds Ethereum deflation directly into Linea’s protocol layer.

The other 80% of fees will be used to burn LINEA tokens, reducing supply in tandem with network usage.

Declan Fox, the head of Linea, said:

“Linea Mainnet will burn ETH with every transaction, use the LINEA token to support users, builders, and public goods, and return value to Ethereum’s base layer, all while growing long-term value in the LINEA token-based economy.”

Ecosystem fund

The Ethereum layer-2 network also announced the introduction of an ecosystem fund that will be managed by the Linea Consortium.

According to Linea, the Consortium is made up of key Ethereum contributors, including Eigen Labs, ENS Labs, SharpLink, and Status.

This group will guide resource allocation and support the development of Ethereum-native applications and infrastructure over the next decade.

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