The Linea network developed by Consensy says will be one of the first Ethereum Layer 2 networks to commit to burning ether as part of the network design.
Linea has announced a new staking and burning mechanism for upcoming token launches to become more consistent with the Layer-1 blockchain, according to a statement sent to CointeLegraph.
This move comes amid growing concern that Layer 2 networks are reaching chain activity and fare revenue from the Ethereum mainnet.
The Linear Token Generation Event is scheduled to take place later this year, with 85% of the token supply going to the ecosystem, with the remaining 15% being allocated to Consensy Treasury under a five-year lockup.
When is the Linea token generation event?
Linea’s global product lead Declan Fox told Cointelegraph that there is no exact date for events for the token generation and that it will share airdrop criteria by a week before the event.
A new staking mechanism, expected to be launched in October, allows users to earn staking rewards even if they bridge Ether (ETH) to Linea. This increases productivity as ETH can also be used for Defi activity on the Rayer-2 network.
“Linea is the only L2 with total Ethereum compatibility and we wanted economics to be as tuned and supportive as technology,” said Joseph Rubin, founder and CEO of Consensey.
He explained that the harvested staking rewards are distributed to Linea, increasing yields for active liquidity.
“This creates a flywheel to attract capital through sustainable incentives, where deeper liquidity promotes more transaction volume and attracts more deposits.”
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Additionally, 20% of all Linea transaction fees are used to burn ETH, as the network will become the first L2 to promise to burn assets. The remaining 80% burns Linear Tokens and burns them with Defray.
Building market share
According to L2Beat, Linea is just 1.23% of the Rollup-based Layer 2 market, weighing around $513 million.
Fox said there are plans to expand this by building Linea Mainnet “to become the best chain for ETH capital at a time when the momentum behind ETH is very strong.”
He added that ether liquidity providers will find “the best returns that adjust risk by bridging liquidity to Linea and increasing market share.”
“This, combined with Consensy’s ecosystem and distribution of Metamask, attracts users and builders even more, and returns home to Linea Digital Real Estate.”
Ethereum Alignment Consortium
Consensy has also announced a consortium located at Ethereum, which administers the Ethereum Ecosystem Fund. In addition to Consensus, members of the consortium include Eigen Labs, Ens Labs, Status and Joe Lubin’s Eth Treasury Gaming Firm Sharplink.
“Linea’s commitment to Ethereum was not clear. I think that’s a crucial part of the future with the unique Ethereum of the platform,” said Joseph Charom, co-CEO of newly appointed Sharplink.
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