Ethereum News Today: Linea Token Supply Surges to 72 Billion, 1,000x Ethereum's Initial Circulation Amid Inflation Fears and Selling Pressure

Linea’s LINEA token, set to launch as an Ethereum Layer 2 solution, has revealed a total supply of 72 billion tokens, a figure 1,000 times larger than Ethereum’s initial circulating supply. The tokenomics also include a 9% allocation for an airdrop to early users, aimed at incentivizing adoption [1]. This massive supply has drawn scrutiny from the crypto community, with analysts highlighting potential risks such as inflation and post-launch selling pressure if distribution mechanisms lack sufficient safeguards [1].

The project, backed by Consensys, has not yet confirmed key operational details, including the timeline for the Token Generation Event (TGE) or airdrop eligibility criteria. Linea’s whitepaper outlines plans to distribute tokens through an ETH-based yield mechanism and an ecosystem development fund, though specifics remain undisclosed [1]. These strategies suggest a focus on fostering network growth, but the absence of clear lockup periods or controlled release schedules has raised concerns about market volatility.

The unprecedented token supply contrasts sharply with typical Layer 2 token designs, which often prioritize scarcity to enhance value retention. Linea’s approach has sparked debate about whether the large issuance could undermine the token’s utility or lead to rapid dilution. Critics also point to a recent blockchain halt incident as a potential red flag for the project’s decentralization commitment [1]. Meanwhile, Ethereum Layer 2 users are closely monitoring the token’s impact, with many awaiting further transparency to assess its long-term viability [1].

Source: [2] Linea Tokenomics Reveal 72 Billion Supply and 9% Airdrop Allocation Amid Inflation Concerns,[https://en.coinotag.com/linea-tokenomics-reveal-72-billion-supply-and-9-airdrop-allocation-amid-inflation-concerns/]