ConsenSys’ Linea Layer 2 (L2) network has published an updated roadmap outlining groundbreaking features set to enhance Ethereum’s ecosystem. Notably, Linea will become the first Layer 2 solution to implement a dual token burn mechanism that reduces Ethereum’s supply while creating deflationary pressure on its own native token, LINEA.
Dual Burn Model to Support Ethereum and LINEA
Linea plans to burn 20% of all ETH transaction fees collected on the network. This protocol-level burn directly reduces Ethereum’s circulating supply, reinforcing its economic value by creating greater deflationary pressure. The remaining 80% of fees will be converted into and used to burn the LINEA token, introducing dual deflationary dynamics. This innovative model aligns the economic interests of both the primary Ethereum network and Linea’s Layer 2 chain.
Strengthening Ethereum’s Layered Ecosystem
The burn mechanism aims to strengthen the economic connection between Ethereum’s mainnet (Layer 1) and the Layer 2 scaling layer. By reducing ETH supply on Layer 2 transactions, Linea supports Ethereum’s overall tokenomics directly through L2 activity—a novel approach in Ethereum’s scaling landscape.
Native ETH Staking Launch Scheduled for October 2025
In October 2025, Linea will integrate native Ethereum staking, allowing users who transfer ETH onto the Linea network to have their funds automatically locked in staking. This feature enables users to earn mainnet Ethereum staking rewards while enjoying Layer 2 liquidity and scalability benefits. All rewards generated from this staking will be reinvested to fund blockchain and ecosystem development initiatives on Linea.
Consortium Formation to Guide Ecosystem Growth
The Linea team has also announced the formation of a consortium comprising key ecosystem players, including Eigen Labs, ENS Labs, Status, SharpLink Gaming, and ConsenSys. This consortium will manage a dedicated Ethereum ecosystem fund for the next ten years, supporting application development and research to foster Linea’s growth. The fund’s governance charter is set to be published in the near future.
Linea’s Growing Impact in the Ethereum L2 Landscape
According to data from L2Beat, Linea currently commands approximately 1.23% share of all Ethereum Layer 2 networks, with its Total Value Locked (TVL) surpassing $515 million as of late July 2025. This demonstrates significant user adoption and capital committed to Linea’s scaling solution.
Upcoming LINEA Token Launch Details
While the exact launch date of the LINEA token remains unconfirmed, the team has revealed key details about its distribution plan. Of the total token supply:
10% will be allocated to early adopters through an airdrop.
75% will be gradually distributed via the consortium-managed ecosystem fund.
The remaining 15% will be held by the ConsenSys treasury, locked for five years.
Linea’s CEO, Declan Fox, emphasized that the token distribution model embodies Ethereum’s core principles of accessibility and ecosystem-driven development. He stated, “We aim to demonstrate a new standard for building L2 solutions that directly strengthen the Ethereum mainnet and increase the value of its native cryptocurrency.”
Glossary
Dual Burn Model: Burning both Ethereum transaction fees and the native Layer 2 token to reduce circulating supply and increase value.
TVL (Total Value Locked): The total value of assets deposited in a protocol, indicating user trust and ecosystem growth.
Native ETH Staking: A staking process where ETH locked on Layer 2 earns mainnet validator rewards directly.
ConsenSys’ Linea L2 roadmap reflects ambitious advancements in Ethereum Layer 2 scaling, combining innovative tokenomics and ecosystem governance to enhance both network scalability and ETH’s economic strength.
