Ethereum News Today: Linea to Burn 20% of ETH in Transactions Starting October 2025

Linea, an Ethereum Layer 2 (L2) solution developed by ConsenSys, has announced a new token model featuring a 20% ETH burn on transactions, set to activate in October 2025. This marks the first protocol-level ETH burning mechanism introduced by the project, aiming to create deflationary pressure and enhance the value of both ETH and the LINEA token [1]. The model is part of a broader strategy that includes ETH-native staking mechanisms and a reallocation of the LINEA token supply, with 85% now directed toward developer incentives and ecosystem grants.

The new model operates by using ETH for gas fees while implementing a dual destruction mechanism to reduce the supply of both ETH and LINEA tokens. Declan Fox, Head of Linea at ConsenSys, emphasized that these changes are intended to stimulate innovation, attract new participants, and focus on long-term ecosystem development [1]. By systematically burning a portion of transaction fees, Linea aligns with Ethereum’s broader economic goals, particularly those introduced through EIP-1559, which successfully controlled supply and demand dynamics.

This move could have significant implications for market dynamics. The immediate impact may include an increase in ETH value due to the anticipated deflationary pressure. Additionally, stakeholders could benefit from ETH reinvested into DeFi pools, offering potential for long-term value appreciation. The LINEA token is central to this strategy, enabling strategic resource allocation and supporting users, builders, and public goods within the ecosystem.

The broader Ethereum L2 ecosystem continues to grow, with total value locked (TVL) exceeding $40 billion [3]. However, the rapid expansion has also sparked debates about the financial sustainability of continuous L2 additions. Groups like CurveDAO have expressed concerns, highlighting the need for a balanced approach to ensure long-term viability. The success of Linea’s upgrades will depend on sustained innovation, strong community alignment, and the maintenance of economic incentives across the ecosystem.

As Ethereum’s L2 landscape evolves, institutional and capital confidence remains strong. The Ethereum Foundation is advancing its roadmap, including the upcoming Beacon Chain 2.0 upgrade, which aims to enhance decentralization and reduce transaction confirmation times [6]. These developments reflect a broader trend of maturity in the Ethereum ecosystem, especially as the platform approaches the 10th anniversary of its mainnet launch. The migration of Celo to Ethereum’s L2 in March 2025 further illustrates the flexibility and scalability of L2 solutions [9].

While challenges persist, the introduction of Linea’s ETH burn model represents a significant step toward sustainable development within the Ethereum ecosystem. It reflects a growing trend of capital flow toward long-term economic models and is drawing interest from both DeFi and traditional finance actors [1].

Source:

[1] AInvest, https://www.ainvest.com/news/ethereum-news-today-curvedao-proposes-halting-layer-2-expansions-due-revenue-2508/

[3] Crowdfund, https://www.crowdfundinsider.com/2025/08/247111-ethereum-ecosystem-continues-to-mature-with-eth-soaring-nearly-50-in-past-month-grayscale/

[6] Medium, https://medium.com/@nownodes/ethereum-foundation-shares-10-year-roadmap-c5a3b7e0e052

[9] Binance, https://www.binance.com/en/square/post/27771720218849