On July 29th, the Linea team, Ethereum’s second tier (L2) network, announced a series of important updates that promise to translate integrations with the ecosystem.
There is a generation in the novelty yield (passive income mechanism), Burning ETH Procedure The formation of the native Ethereum Consortium “Manage the largest fund (ether) in the sector.”
ETH burns in L2: Line and Ethereum milestones
They explain from the line that this chain will be “the first L2 to implement the ETH combustion mechanism at the protocol level.” 20% of all net rates This L2 transaction is burned.
This burning process means Persistent ETH Removal from the Circulationexerts deflationary pressure on the total supply of ether.
ETH Burning is not a new concept of Ethereum. Since EIP-1559 was implemented in 2021, a small portion of the transaction rate in the main network has been burning, betting on the unsubstantiated deflation dynamics, as reported by encryption.
At the time of this article, the data is The ether supply beats the burning of that token by 0.12% From the merge update imposed in September 2022:
Over the past 30 days, the ether supply has increased compared to the aforementioned period, surpassing the combustion by 0.7%.
If the burning of ETH online increases the demand for this L2 and the use of ether, it could create a favorable environment for deflation in Ethereum currency. It occurred between January 2023 and February 2025.
Other line suggestions
The line will be introduced yield ETH “Bridge” decentralized finance platform (defi) (defi)Bridged eth), where Deposit generates staking rewards For liquidity suppliers (Liquidity providerlp).
LP is a user Provide assets to liquidity poolsfacilitating transactions on the Defi platform in exchange for some of the commissions generated. These suppliers accumulate staking yields along with profits from defi activity in the network.
Linea also created people who take into account the background of the largest Ethereum ecosystem. 85% of community token line (75% for development, 10% for early users), 15% were blocked for five years.
This fund is administered by a consortium of organizations such as: Consensys, Eigen Labs y Ens Domainsespecially.
The Ethereum Community’s response to the Line Announcement
They grow foot analysis sites from on-chain to ensure online burning Meaning “huge” step For the Ethereum ecosystem.
According to the source, the line released in 2023 is currently being released. 6th place in terms of income Of all Ethereum’s two-tier network (one-fifth of history), it generated more than $64 million in total revenue (approximately 24,000 ETH). So far, it has accumulated $130,000 in revenue (approximately 40 ETH).
Ethereum co-founder Joseph Rubin concluded, “It’s time to change the game for L2. The game’s name is Ethereum. The line is 100% Ethereum.”
In the same way, Line developer Declan Fox states: “The lines are built to serve a single purpose.