New ETH Staking: 85% Tokens for Community

Linea Commits 85% of Tokens to Community with New ETH Staking Program

30 July 2025 on 09: 12

Reading time: 2 minutes

Linea, a Layer 2 network built on Ethereum, recently unveiled a detailed roadmap to strengthen its integration with the Ethereum ecosystem. A core component of these plans involves a new ETH-native staking system, which will allow users to generate yield on stakes via a native bridge, scheduled to launch no later than October 2025. ETH, directly from the validators on the Ethereum mainchain.

This innovation offers users the opportunity to not only receive Ethereum staking rewards but also benefit from DeFi advantages within the Linea ecosystem. This model, Linea argues, has the potential to transform ETH from a passive collateral to an active capital layer, leading to new forms of productivity on the blockchain and encouraging long-term participation.

Tokenomics by Linea

In preparation for the upcoming Token Generation Event (TGE) later this year, Linea has shared key details about its token distribution and fee structure. Of the total token supply, a substantial 85% is earmarked for ecosystem growth. Of this, 10% is reserved for early adopters, while 75% will be gradually deployed through a multi-year ecosystem fund. The remaining 15% is reserved for the Consensys Treasury and will be locked for five years.

Joseph Lubin, co-founder of Ethereum, offered his perspective on tokenomics: “Linea is the only Layer-2 that offers full compatibility with Ethereum. We want the economies to be as supportive as the technology. We're building for the long term, creating infrastructure that institutions can trust and the broader Ethereum community can collaborate with.”

Furthermore, Linea has introduced a dual-burn model that distinguishes it from other Layer 2 solutions. Of all net transaction fees, 20% will be settled and burned in ETH, an unprecedented initiative that directly integrates Ethereum's deflationary pressures into Linea's protocol. The remaining 80% of the fees will be used to burn LINEA tokens, reducing the supply in line with network usage. Declan Fox, Head of Linea, noted: "The Linea Mainnet will burn ETH with every transaction, using the LINEA token to support users, developers, and public goods, and returning value to the Ethereum base layer, while simultaneously promoting value growth in the LINEA token-based economy."

Ecosystem Fund

Additionally, Linea announced the launch of an ecosystem fund, managed by the Linea Consortium. This consortium comprises key Ethereum contributors, including Eigen Labs, ENS Labs, SharpLink, and Status. This group will focus on guiding the allocation of resources and supporting the development of Ethereum-native applications and infrastructure over the next decade.

Frequently Asked Questions

What makes Linea unique compared to other Layer-2 networks?
Linea stands out for its full compatibility with Ethereum and the introduction of a dual-burn model, allowing it to burn both ETH and LINEA tokens, thus optimizing economic incentives for users.

What are the benefits of Linea's new staking system?
The new staking system allows users to generate yield on their bridged ETH while also enjoying DeFi benefits, strengthening the appeal of the Linea ecosystem.

How will Linea's Ecosystem Fund contribute to the Ethereum community?
The Ecosystem Fund, managed by the Linea Consortium, aims to facilitate development projects and innovations within the Ethereum ecosystem, supporting the long-term growth and adoption of Ethereum-native applications.

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