Linea, an Ethereum Layer 2 network developed by Consensys, has released the full details of its tokenomics, outlining a model designed to reinforce Ethereum’s long-term value and ecosystem.
The announcement positions LINEA as an economic coordination tool aimed at funding builders, rewarding network participation, and supporting Ethereum public goods.
Linea is the Ethereum L2 built to serve one purpose: to strengthen Ethereum.
The LINEA token is the economic coordination tool that will be used to reward real usage, bootstrap aligned applications and builders, and fund Ethereum’s long-term development.
Here’s what you need to… pic.twitter.com/69N2OdxGvT
— Linea.eth (@LineaBuild) July 29, 2025
Under the framework, ETH will remain the exclusive gas token for Linea. A dual-burn mechanism will link network usage to value creation for both ETH and LINEA. Twenty percent of Layer 2 gas fees, after Layer 1 costs, will be used to burn ETH, while the remaining 80 percent will burn LINEA.
The total LINEA supply is set at 72,009,990,000 tokens, mirroring Ethereum’s original distribution model. Of this, 85 percent is allocated to the ecosystem and 15 percent to the Consensys treasury, which will remain locked for five years. At the token generation event (TGE), roughly 22 percent of tokens will enter circulation, driven by early contributor airdrops, liquidity provisioning, and ecosystem activation initiatives.
Key allocations include a 9 percent airdrop for early users, 1 percent for strategic builders, and 75 percent for an ecosystem fund overseen by the Linea Consortium, a council that includes ENS Labs, Eigen Labs, SharpLink, Status, and Consensys. The ecosystem fund will be deployed in phases, with approximately 25 percent reserved for near-term liquidity, partnerships, and builder incentives, and the remainder distributed over 10 years to fund long-term development and Ethereum public goods.
The network will operate without token-based governance. Instead, the Linea Consortium will manage emissions, incentives, and fund allocations through a non-profit entity based in the United States.
In addition, Linea has begun covering layer-2 gas fees for users who bridge assets from the Ethereum mainnet using its native bridge, marking a strategic move to streamline onboarding and enhance accessibility. Announced in a recent X post, the initiative is designed to lower entry barriers for new users by reducing transaction costs, though it does come with specific usage limitations.
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