Ethereum News Today: Linea Unveils Dual Token Burn and Native ETH Staking to Drive Ethereum Deflation

ConsenSys’ Linea Layer 2 (L2) network has announced a revised roadmap introducing a dual token burn mechanism and native Ethereum (ETH) staking capabilities, aiming to enhance Ethereum’s ecosystem. The updates position Linea as the first L2 solution to implement a dual burn model, which reduces Ethereum’s circulating supply while creating deflationary pressure on its native token, LINEA [1]. Under the plan, 20% of ETH transaction fees collected on Linea will be burned at the protocol level, directly shrinking Ethereum’s supply. The remaining 80% will be converted into LINEA tokens for secondary burning, aligning economic incentives between the mainnet and L2 layer. This approach strengthens the economic interconnection between Ethereum’s Layer 1 and Layer 2, as deflationary pressures from L2 transactions directly support Ethereum’s tokenomics [1].

The roadmap also includes a scheduled launch of native ETH staking in October 2025. This feature will allow users to stake ETH on the Linea network and earn mainnet staking rewards while retaining access to L2 liquidity and scalability benefits. Rewards generated from staking will be reinvested into blockchain development and ecosystem initiatives on Linea [1]. To further bolster growth, the Linea team has formed a consortium with key players such as Eigen Labs, ENS Labs, and SharpLink Gaming. The consortium will oversee a dedicated Ethereum ecosystem fund for the next decade, supporting application development and research. Governance details for the fund are expected to be published soon [1].

As of late July 2025, Linea holds approximately 1.23% of all Ethereum L2 network traffic, with Total Value Locked (TVL) exceeding $515 million, reflecting strong user adoption and capital commitment [1]. While the LINEA token’s official launch date remains unconfirmed, its distribution plan has been outlined: 10% will be allocated to early adopters via airdrop, 75% will be distributed through the consortium-managed fund, and 15% will be reserved in the ConsenSys treasury, locked for five years [1]. Linea CEO Declan Fox emphasized that the token distribution aligns with Ethereum’s principles of accessibility and ecosystem-driven development, stating the initiative aims to set a new standard for L2 solutions that reinforce the mainnet and ETH’s value [1].

The dual burn model and native staking features represent a strategic shift in Ethereum scaling, prioritizing economic alignment between L1 and L2 layers. By reducing ETH supply through L2 activity, Linea introduces novel deflationary dynamics that could influence broader Ethereum tokenomics. However, the success of these measures will depend on sustained user participation and capital inflows, which are critical for maintaining TVL growth and ecosystem development. The formation of the consortium also underscores the importance of collaborative governance in scaling Ethereum’s infrastructure, potentially mitigating risks associated with centralized control [1].

Source: [1] ConsenSys’ Linea L2 Unveils New Roadmap with Dual Token Burn and Native ETH Staking Launch (https://coinmarketcap.com/community/articles/6888f4a531246d0e3959fc28/)