Tokenomics
The LINEA token is designed to grow and support Ethereum and Linea, and has several radical features that set it apart from most layer 2 tokens:
- ETH is the gas token
- LINEA does not come with any governance rights
- There is no token allocation for insiders, investors, or team members.
Instead, LINEA will help to organically grow the chain by being distributed to users as a reward for using apps and protocols on Linea.
Allocation
LINEA will have a total supply of 72,009,990,000. This 1,000x the genesis supply of ETH on Ethereum.
85% of the supply of LINEA will be be invested in the community and ecosystem, comprising the Ecosystem Fund, with 15% held long-term by Consensys.
The supply will be allocated according to the below table:
| Category | % of supply | Details |
|---|---|---|
| Ecosystem | 85% | 75% for a long-term Ecosystem Fund, and 10% for early contributors. |
| Consensys treasury | 15% | Locked (non-transferrable) for five years. Consensys will hold the tokens long-term for alignment and to support Linea and its ecosystem. |
Except from the initial allocation to Consensys, which is locked for five years, there is no allocation to private investors, insiders, or employees and team members. Instead, value is funneled straight into the ecosystem, the builders bringing it to fruition, and the community members engaging with it.
At the time of the token generation event (TGE), 22% of the LINEA supply will be in circulation, split between a user and builder airdrop, ecosystem activations, and liquidity provisioning.
All other allocations will be locked at TGE, or vesting according to various schedules.
Ecosystem (85%)
Early contributors (10%)
The initial airdrop for early contributors, comprising 10% of the supply, will include:
- 9% to early contributors
- 1% to strategic builders
The early contributor airdrop for users will be based on onchain activity over the long term, including LXP. An eligibility checker will be available before TGE. The 1% allocation for builders will be distributed through a curated, targeted process for maximum impact.
All tokens distributed through the above airdrops are fully unlocked.
Ecosystem Fund (75%)
The long-term section of the Ecosystem Fund will be managed by the Linea Consortium.
This 75% will unlock over 10 years, with unlocks weighted towards the earlier years to encourage early activation and adoption. Unlocks occur early — 10% per year in the early years, tapering to 2% by the tenth year.
These funds will be used for:
- Funding for Ethereum R&D
- Maintaining shared ecosystem infrastructure such as audits, developer tools, and node infrastructure
- Funding public goods, such as open-source software, research, and community programs
- Strategic co-development with aligned organizations or emerging protocols.
Consensys treasury (15%)
15% of the total token supply will be incorporated into the Consensys treasury. This allocation will be locked for five years and is non-transferrable until a vesting schedule is complete.
Burning mechanism
Linea and the LINEA token are designed specifically to reinforce the strength of Ethereum and ETH, achieved through an automatic, dual-burn mechanism:
- All gas fees on Linea are paid in ETH
- 20% of net ETH profits (Linea revenue minus operating costs and subsidies) will be burned, reducing ETH supply
- 80% of net ETH profits are used to burn LINEA, reducing LINEA supply.
As a result, network activity on Linea directly supports both the value of ETH and LINEA.