Linea unveils tokenomics model with initial circulation at approximately 22% and 80% of revenue allocated for buybacks

Foresight News reports that on July 29, Ethereum L2 network Linea announced the design and allocation plan for its token, LINEA. LINEA is not a gas token; transactions on Linea use ETH to pay fees, and both ETH and LINEA are subject to a dual-burn mechanism through the L2 fee structure.

The total supply of the token is 72 billion, with 85% allocated to the ecosystem and 15% to the Consensys treasury. The latter is subject to a five-year lock-up period, with no reserved portion for investors or employees. The core purposes of the token are to reward genuine usage, incentivize builders, and support Ethereum public goods. At TGE, approximately 15.8 billion tokens (about 22%) will be in circulation, covering early user airdrops, ecosystem incentives, and liquidity bootstrapping.

The specific allocation is as follows:

Ecosystem Fund (75%): Managed by the Linea Federation, which includes ENS Labs, Eigen Labs, Status, and others, operating as a non-profit entity. It will provide phased support for liquidity, developer incentives, R&D, and public infrastructure. Early Contributors (10%): 9% for user airdrops and 1% for key ecosystem projects, both unlocked at TGE. Consensys Treasury (15%): Locked for five years, to be used for future ecosystem deployment and protocol health support.

Linea DAO will be responsible for the allocation of ecosystem funds and the design of incentive mechanisms, with no token-based on-chain governance. In terms of the fee mechanism, for each L2 transaction, 20% of the ETH fee will be burned, and 80% will be used to buy back and burn LINEA, creating a long-term value linkage between ETH and LINEA.