Consensys-backed Ethereum layer-2 network Linea has revealed comprehensive plans for launching its native LINEA token, positioning itself as the future hub for Ethereum ecosystem capital. The ambitious initiative centers around creating innovative mechanics designed to strengthen both Linea and the broader Ethereum network, including native yield generation on bridged ETH and systematic ETH token burns. Declan Fox, Head of Linea at Consensys, emphasized that the network’s primary mission is to establish itself as “the chain for ETH capital” through Ethereum-centric tokenomics and economic design that benefits the entire ecosystem.
A key component of Linea’s strategy involves the formation of the Linea Consortium, comprising prominent Ethereum-aligned companies including publicly traded SharpLink Gaming, ENS Labs, Eigen Labs, Status, and Consensys itself. This consortium will collectively oversee 75% of the LINEA token distribution through what the network describes as the “largest Ethereum ecosystem fund by allocation.” The consortium members will be responsible for strategically distributing tokens to users, builders, liquidity providers, institutions, and creators who can contribute to the success of both Linea and Ethereum, with the full charter expected to be published ahead of the token generation event.
The tokenomics model demonstrates Linea’s commitment to Ethereum alignment through a unique fee structure that directly benefits ETH holders. The network plans to burn 20% of all net transaction fees paid in ETH while using the remaining 80% to burn LINEA tokens, creating a deflationary mechanism proportional to network activity. This approach addresses concerns raised by Ethereum co-founder Vitalik Buterin about layer-2 networks potentially extracting value from Ethereum’s mainnet, with Linea’s model designed to provide value back to ETH holders as the network grows.
The announcement comes at an opportune time as Ethereum has surged toward $4,000, reaching 2025 highs and demonstrating renewed market confidence in the ecosystem. SharpLink co-CEO Joseph Chalom praised Linea’s “unique alignment with Ethereum” as positioning it to become “an important part of its future.” Fox emphasized that Linea’s success will ultimately be measured by the amount of ETH capital actively deployed on the network, with the goal of providing the best risk-adjusted returns for ETH holders while reinforcing Ethereum’s position as the foundational layer for decentralized finance and the broader blockchain ecosystem.
