Key Highlights:

• ETH-native yield on bridged ETH launching by October
• Protocol-level ETH burn, first for any Ethereum Layer 2
• Deflationary $LINEA token design
• 85% of $LINEA supply allocated to ecosystem; 15% to Consensys
• Launch of a 10-year Ethereum ecosystem fund with major Web3 institutions
• Tokenomics built to mirror ETH’s design and reinforce Ethereum alignment

🔁 Native Yield and ETH Burn at the Protocol Level

Linea will soon introduce staking rewards for bridged ETH, expected by October 2025. Users staking ETH on Linea will not only earn yield but help grow the ecosystem, with rewards automatically reinvested back into projects and builders within the Linea ecosystem.

Significantly, 20% of all net transaction fees, paid in ETH, will be burned at the protocol level, reducing ETH supply and helping Ethereum Layer 1 accrue value. Linea is the first L2 to commit to burning ETH directly, rather than only its native token.

The remaining 80% of transaction fees will be used to burn LINEA tokens, ensuring a deflationary token model linked directly to network usage.

📉 Tokenomics: 85% to Community and Ecosystem

The upcoming $LINEA token features a strong community-focused and Ethereum-aligned distribution:

No public sale or VC round has been announced, reinforcing Linea’s emphasis on Ethereum-native ownership and decentralization.

Ethereum-Aligned Consortium to Manage Ecosystem Fund

A newly formed Linea Consortium, featuring major Ethereum-native entities such as Consensys, Eigen Labs, ENS Labs, Status, and SharpLink Gaming, will oversee the ecosystem fund.

The group will launch the fund on Ethereum’s 10th anniversary (July 30) and manage its growth over a minimum 10-year period. Initiatives supported will include:

• Funding developers, startups, and public goods
• Supporting R&D in Ethereum infrastructure
• Providing liquidity incentives
• Facilitating educational and outreach programs

Joseph Lubin, Consensys CEO and Ethereum co-founder, emphasized the long-term mission:

“Linea is the only Layer 2 with total Ethereum compatibility. We’re aligning the economics and technology to build infrastructure institutions can trust, and the Ethereum community can own.”

Read More: Crypto Treasuries Surge as Institutions Go All In on BTC, ETH, and Altcoins

💼 Institutional Support Growing

The announcement comes as SharpLink Gaming (NASDAQ: SBET), chaired by Lubin and co-led by ex-BlackRock executive Joseph Chalom, deepens its Ethereum integration. SharpLink now holds 438,017 ETH (~$1.7B) in its treasury and recently raised $425 million in a private placement led by Consensys.

“Linea’s commitment to Ethereum couldn’t be more clear,” said Chalom. “Institutions value platform stability and are always building for the long term. We’re excited to be part of a movement that directly supports Ethereum’s growth.”

What to Expect From the $LINEA Token

The $LINEA token launch date has not yet been confirmed, but it’s expected soon. The team says the design draws heavily from Ethereum’s original principles, aiming to:

• Encourage ecosystem ownership
• Reward early adoption
• Align with ETH utility and values
• Set new standards for Layer 2 token design

“We wanted to serve as an example for how L2s are built and brought to market,” said Declan Fox, Head of Linea. “Our approach is about contributing directly to Ethereum’s long-term strength.”

Conclusion: A Bold Layer 2 Blueprint

Linea is staking a clear claim in the race for Ethereum-aligned Layer 2 dominance — not just through speed or cost, but by reinforcing ETH value, rewarding ecosystem growth, and offering a transparent and community-first token model.

With ETH-native staking, a dual-token burn system, and a 10-year ecosystem fund governed by leading Ethereum institutions, Linea is pushing Layer 2 innovation into a new, institutionally credible era.

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