Linea, an Ethereum Layer 2 network developed by ConsenSys, has officially unveiled its tokenomics framework, introducing a distinct Ethereum-aligned model.
Detailed in a July 29 blog post, the announcement comes ahead of Linea’s upcoming Token Generation Event. Under this model, ETH will be the exclusive gas token, while the newly introduced LINEA token will be used for incentives and ecosystem funding.
LINEA not for gas or governance
Departing from conventional Layer 2 models, Linea introduces a clear separation between utility and value capture by using ETH exclusively for gas while implementing a dual-burn mechanism involving both ETH and LINEA. Under this system, 20% of ETH revenue on the network is burned, and the remaining 80% is used to buy and burn LINEA tokens. This approach aims to strengthen ETH’s monetary premium while tying LINEA’s value directly to network activity.
LINEA will not function as a governance token, and the protocol will not be governed by a DAO. Instead, strategic oversight will be handled by the Linea Consortium—a council of Ethereum-native projects such as ENS Labs, Eigen Labs, and SharpLink—operating under a U.S.-based nonprofit organization.
LINEA tokenomics
LINEA has a fixed total supply of 72 billion tokens, with 85% dedicated to ecosystem growth and 15% allocated to the ConsenSys treasury. At launch, 22% of the total supply will enter circulation, primarily through airdrops to early users and liquidity initiatives. Notably, no tokens have been sold to investors or allocated to employees.
The Ecosystem Fund, which accounts for 75% of the total LINEA supply, will be distributed over a 10-year period. During the first 12 to 18 months, approximately 25% of the fund will support community development, builder incentives, exchange integration, and liquidity provisioning. The remaining 50% will be allocated to ecosystem infrastructure, public goods, and protocol R&D.
Additionally, 9% of the total supply will be airdropped to early users, fully unlocked at the Token Generation Event (TGE). Eligibility is determined by Linea XP and onchain activity that demonstrates genuine usage and engagement with the ecosystem.
A further 1% is allocated to strategic builders—including key decentralized applications and infrastructure partners—selected through a curated process emphasizing long-term alignment with Linea’s goals.
Focused on Ethereum Alignment
Rather than serving as a governance token, LINEA is positioned as an “economic coordination tool,” with allocation driven by participation rather than capital. This approach prioritizes contributions from users, builders, and ecosystem participants, reflecting a commitment to decentralized growth and sustained funding for public goods—an ethos reminiscent of Ethereum’s 2015 launch.
As of now, Linea holds over $155 million in total value locked, according to DefiLlama, and supports more than 350 applications. Recent milestones include the integration of native USD Coin (USDC) and a fee subsidy partnership with Layerswap aimed at lowering the cost of bridging assets into the Linea network.
