Ethereum News Today: Linea Unveils ETH-Gas Tokenomics With 20% ETH Burning, 80% LINEA Buybacks to Drive Ecosystem Growth

Linea, a layer 2 Ethereum network developed by ConsenSys, has unveiled a tokenomics model that diverges from conventional Layer 2 frameworks by exclusively using ETH for gas fees while positioning its native LINEA token as an incentive mechanism without governance powers. This design reinforces Ethereum’s monetary premium and aligns with broader ecosystem growth goals. The network’s dual-burn fee structure allocates 20% of Layer 2 ETH revenue directly to ETH burning, while 80% funds the purchase and destruction of LINEA tokens, linking the token’s value to real-world usage [1].

The LINEA token’s role is strictly limited to ecosystem incentives, with no governance functions. Instead, strategic decisions are managed by the Linea Consortium—a U.S.-based nonprofit council comprising Ethereum-native entities such as ENS Labs, Eigen Labs, and SharpLink. This consortium emphasizes experienced stewardship over decentralized autonomous organization (DAO) governance, a structure the network describes as fostering "authentic ecosystem engagement" [2].

Token allocation is fixed at 72 billion units, with 85% reserved for ecosystem incentives and 15% allocated to the ConsenSys treasury. Notably, 22% of tokens will circulate at launch, distributed via early user airdrops and liquidity programs. The model excludes pre-sales to investors or employees, ensuring a fairer initial distribution. The Ecosystem Fund, representing 75% of the total supply, will be deployed over a decade, with 25% allocated to community development, builder incentives, and liquidity provisioning in the first 12–18 months [3].

Linea’s alignment with Ethereum’s vision is evident in its framing of LINEA as an "economic coordination tool" rather than a governance asset. This mirrors Ethereum’s 2015 launch principles, prioritizing decentralized growth and long-term public goods funding [4]. The network’s current ecosystem supports over 350 applications and holds $155 million in total value locked, bolstered by recent integrations like native USD Coin (USDC) and a fee subsidy partnership with Layerswap to reduce bridging costs [5].

The dual-burn mechanism distinguishes Linea from peers, as it reinforces ETH’s scarcity through fee burning while incentivizing builders and users via LINEA. By separating utility and governance functions, the model aims to sustain network adoption and value creation without diluting Ethereum’s core principles.

Source: [1] Linea Tokenomics Suggests ETH Gas Use and Ecosystem Incentives Without Governance Role, [https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/](https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/)

[2] Linea Tokenomics Suggests ETH Gas Use and Ecosystem Incentives Without Governance Role, [https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/](https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/)

[3] Linea Tokenomics Suggests ETH Gas Use and Ecosystem Incentives Without Governance Role, [https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/](https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/)

[4] Linea Tokenomics Suggests ETH Gas Use and Ecosystem Incentives Without Governance Role, [https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/](https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/)

[5] Linea Tokenomics Suggests ETH Gas Use and Ecosystem Incentives Without Governance Role, [https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/](https://en.coinotag.com/linea-tokenomics-suggests-eth-gas-use-and-ecosystem-incentives-without-governance-role/)