Ethereum News Today: Linea Unveils 72-Billion Token Supply with 85% Ecosystem Incentives Ethereum-Linked Dual-Burn Mechanism

Linea, the Ethereum layer-2 network developed by ConsenSys, has unveiled its tokenomics framework, positioning Ethereum (ETH) as the sole gas token while allocating 85% of the total LINEA supply to ecosystem incentives. The total supply of 72 billion LINEA tokens is structured to prioritize decentralized growth, with 15% reserved for the ConsenSys treasury [1]. At launch, 22% of the total supply will be in circulation, primarily distributed through airdrops and liquidity programs, while no tokens have been allocated to investors or employees [1].

The framework emphasizes Ethereum alignment by using ETH for gas and fee burns, with 20% of layer-2 ETH revenue burned directly and 80% used to buy and burn LINEA tokens. This dual-burn mechanism aims to reinforce ETH’s value capture while linking LINEA’s utility to network usage [1]. Notably, the LINEA token does not function as a governance token; instead, strategic decisions are managed by the Linea Consortium, comprising Ethereum-native projects such as ENS Labs and Eigen Labs, operating under a U.S.-based nonprofit [1].

Ecosystem allocation details reveal that 75% of the 72 billion tokens will be deployed over a 10-year period. The initial 12 to 18 months will allocate 25% of the supply to community development, builder support, and liquidity provisioning, with the remaining 50% reserved for infrastructure, public goods, and research [1]. Additionally, 9% of tokens will be distributed to early users via airdrops, unlocking fully at the Token Generation Event (TGE), while 1% will support strategic builders through curated partnerships [1].

The model diverges from traditional L2 governance structures by positioning LINEA as an “economic coordination tool” rather than a governance mechanism. Allocation prioritizes participation over capital, reflecting Ethereum’s 2015 launch principles [1]. As of now, Linea hosts over 350 applications and $155 million in total value locked, with recent updates including native USD Coin (USDC) integration and a fee subsidy partnership with Layerswap [1]. The TGE announcement was confirmed in a July 29 blog post, ahead of the network’s token launch [2].

Source: [1] LINEA tokenomics: ETH Gas, 85% ecosystem, 15% treasury, [https://crypto.news/linea-tokenomics-eth-gas-airdrop-ecosystem-fund-2025/], [2] Wu Blockchain on X: "Linea has released its tokenomics", [https://x.com/WuBlockchain/status/1950265188****92076], [3] 仮想通貨AI翻訳ニュース on X: "Linea がトークノミクスを ...", [https://x.com/CryptoJPTrans/status/19502656183****8510]