In brief

• Ethereum layer-2 network Linea aims to be the future home to the world’s Ethereum capital.
• The network unveiled token details and mechanisms for supporting ETH and LINEA.
• Ethereum-aligned companies will collectively steward 75% of LINEA tokens through the Linea Consortium.

Ethereum layer-2 network Linea aims to become the premier destination for Ethereum ecosystem capital in the future, with plans to introduce a native LINEA token and establish an accompanying ecosystem fund.

Created by Consensys, the network has unveiled token details and economic mechanisms designed to support both ETH and LINEA, signaling Linea’s strategic alignment with the Ethereum base layer.

Linea’s ecosystem initiative involves the formation of the Linea Consortium—a group of Ethereum-aligned organizations including publicly traded treasury company SharpLink Gaming—which will collectively manage 75% of the token distribution via what is described as “the largest Ethereum ecosystem fund by allocation.”

Consortium and Token Distribution

Coin issuance will be managed through the Linea Consortium, whose members are responsible for “thoughtfully distributing” tokens to support both the Layer-2 network and the broader Ethereum ecosystem.

“It’s users, it’s builders, it’s liquidity providers, it’s institutions, it’s creators… anything or anyone that’s going to help make Ethereum and Linea successful,” Fox stated.

The consortium’s full charter is expected to be published before Linea’s token generation event.

Network Economics and Fee Mechanisms

Linea has designed its fee model to create a deflationary mechanism for the token, burning 20% of all net transaction fees denominated in ETH while using the remaining 80% to burn LINEA, establishing a proportional relationship between network activity and token supply reduction.

“As Linea grows, it actually provides value back to ETH holders directly. Our north star is really about Ethereum,” declared Fox.

Financial alignment was emphasized by SharpLink Gaming CEO Joseph Chalom, who stated, “Linea’s commitment to Ethereum couldn’t be more clear, and its unique alignment with Ethereum will make it an important part of its future.”

Broader Context and Market Positioning

Linea’s implementation of ETH burning mechanisms aligns with Ethereum co-founder Vitalik Buterin’s call for layer-2 networks to actively support the base layer’s economic vitality:

“As Linea grows, it actually provides value back to ETH holders directly,” Buterin tweeted, adding that ecosystem developers must “think explicitly about [the] economics of ETH.”

The announcement comes as Ethereum (ETH) has recently recovered to nearly $4,000, marking a significant increase from recent lows while maintaining a distance from its all-time high of $4,878.

Network success metrics will be measured by the quantity of ETH capital deployed on Linea mainnet, with the goal of providing “the best risk-adjusted return for ETH capital,” according to Linea’s leadership.