The Consensys-developed Linea community says it’ll turn into one of many first Ethereum layer-2 networks to decide to burning Ether as a part of its community design, because it shared new particulars of its upcoming token technology occasion and airdrop.
Linea introduced new staking and burning mechanisms for its upcoming token launch in an effort to turn into extra aligned with the layer-1 blockchain, which it hopes will make the community the “house for ETH capital,” in keeping with an announcement despatched to Cointelegraph.
The transfer comes amid rising concern that layer-2 networks have been leeching chain exercise and charge revenue from the Ethereum mainnet.
A LINEA token technology occasion is about to happen later this yr, with 85% of the token provide going to the ecosystem, and the remaining 15% will likely be allotted to the Consensys treasury below a five-year lockup.
When is the Linea token technology occasion?
Declan Fox, international product lead for Linea, informed Cointelegraph that they didn’t have the precise date for the token technology occasion and would share airdrop standards as much as per week earlier than the occasion.
A brand new staking mechanism, which is predicted to be launched in October, will allow customers to earn staking rewards even after they bridge Ether (ETH) to Linea. This makes the ETH productive because it may also be used for DeFi actions on the layer-2 community.
“Linea is the one L2 with complete Ethereum compatibility, and we wished the economics to be as aligned and supportive because the expertise,” mentioned Joseph Lubin, founder and CEO of Consensys.
He defined that harvested staking rewards are distributed on Linea to DeFi protocols, boosting yield for lively liquidity.
“This creates a flywheel for attracting capital via sustainable incentives, the place deeper liquidity drives extra transaction quantity, due to this fact attracting extra deposits.”
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Moreover, 20% of all Linea transaction charges will likely be used to burn ETH because the community turns into the primary L2 to decide to burning the asset. The remaining 80% burns LINEA tokens, making them deflationary too.
Constructing the market share
Linea has simply 1.23% of the rollup-based layer-2 market with an onchain worth of round $513 million, in keeping with L2beat.
Fox mentioned that there are plans to develop this by constructing the Linea mainnet “to be the perfect chain for ETH capital at a time when the momentum behind ETH could be very sturdy.”
He added that Ether liquidity suppliers will discover “the perfect risk-adjusted return by bridging liquidity to Linea, thus rising the market share.”
“This, mixed with the ecosystem of Consensys and distribution of MetaMask, will additional entice customers and builders to return and arrange house on Linea digital actual property.”
Ethereum-aligned consortium
Consensys additionally introduced an Ethereum-aligned consortium that may handle the Ethereum ecosystem fund. Consortium members, along with Consensys, embrace Eigen Labs, ENS Labs, Standing, and Joe Lubin’s ETH treasury gaming agency SharpLink.
“Linea’s dedication to Ethereum couldn’t be clearer, and we expect the platform’s distinctive alignment with Ethereum will make it an necessary a part of its future,” mentioned Joseph Chalom, the newly appointed co-CEO of SharpLink.
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