Linea Unveils ETH Yield, Burn Mechanics Ahead of LINEA Token Launch

Ethereum Layer 2 network Linea, founded by Consensys, is set to introduce a range of groundbreaking features ahead of its upcoming LINEA token rollout. In a statement released Tuesday, the team revealed plans for ETH-native staking rewards, a protocol-level ETH burn mechanism, and a deflationary token model aimed at reinforcing Ethereum’s economic structure.

Linea’s vision is to become the “home for ETH capital” by tightly integrating with Ethereum Layer 1.

Native ETH Yield and Protocol ETH Burn

By October 2025, Linea will support native ETH yield on bridged ETH, meaning users who transfer ETH to the Layer 2 can earn staking rewards directly within the network. These rewards will be reinvested into the Linea ecosystem, bolstering on-chain activity and ecosystem growth.

In a first for Layer 2s, 20% of all net transaction fees (paid in ETH) will be burned at the protocol level, permanently removing ETH from circulation and supporting Ethereum’s deflationary pressure. The remaining 80% of fees will be used to burn LINEA tokens, creating a dual-burn mechanism that strengthens both assets.

This design makes LINEA the first Ethereum L2 to directly burn ETH, aligning tightly with Ethereum Layer 1.

SharpLink Races to Become the Largest Ethereum Treasury Holder

85% of Token Supply Reserved for Ecosystem

The LINEA token will feature a fixed supply, with 85% of it allocated to ecosystem initiatives:

• 10% reserved for early users of the network.
• 75% managed via an ecosystem fund, aimed at developers, community builders, and strategic projects.

Only 15% of the supply will go to Consensys’ treasury, locked up for five years to ensure long-term alignment.

Ethereum-Aligned Consortium Takes the Helm

The Linea Ecosystem Fund will be managed by a consortium of Ethereum-native organizations, including:

• Consensys
• Eigen Labs
• ENS Labs
• Status
• SharpLink (led by Ethereum co-founder Joseph Lubin)

This consortium-driven governance model echoes Ethereum’s decentralized ethos and seeks to build trust through transparency and community-first funding.

Linea’s launch positions it as a serious contender in the rollup wars, offering both financial incentives for ETH holders and an ETH-aligned value accrual structure.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.