Ethereum Layer 2 Network Linea hopes to be the best place for capital in the ETH ecosystem in the future. Additionally, for that purpose, the network builders shared plans to launch liner tokens for the chain at the associated ecosystem fund.
Linea Creator Consensys said the plan revolves around a commitment to the Ethereum-based layer, using new ecosystem mechanics such as Bridged ETH and ETH Burn’s native yield. (Disclosure: Consensy is one of them 22 investors Editorially independent Decryption.))
It also includes the creation of Linea Consortium, a group of Ethereum parallel companies that include the publicly traded Treasury Sharplink Games. This collectively manages 75% of the final Linea token distribution through what the network calls the largest Ethereum Ecosystem Fund by Allocation.
“Linea will be a chain of ETH capital,” said Declan Fox, Consensey’s head of Linea. Decryption. “We are building these mechanisms with this Ethereum-centric token design and economic design to essentially be the perfect place for ETH capital.”
According to Fox, it is designed to bootstrap and drive developments over networks and over Ethereum, and is designed to be responsible for “thoughtfully distributed” Linea tokens to grow both the Layer 2 network and Ethereum itself, to consortium members, including Consensey, Eigen Labs, Ens Labs and Status.
Who might eventually receive those tokens?
“It’s a user, a builder, a liquidity provider, an institution, a creator… anything that helps Ethereum and Linea succeed,” he said.
The network also plans to benefit users in the chain, burning 20% of all net transaction fees directly (paid in ETH).
“As Linea grows, it actually provides value directly to its ETH holders,” Fox said.
The network alignment was clear Newly appointed Sharplink Co-CEO Joseph Chalom“Linea’s commitment to Ethereum is no longer clear,” he said, adding that “the unique integrity with Ethereum will make (Linea) an important part of its future.”
The consistency between Ethereum and its Layer-2 is not always positive, and some investors and analysts suggest that. Scaling Networks have taken away value From the main net of Ethereum.
That’s the problem Recognised by Ethereum co-founder Vitalik Buterin In January, the ecosystem developer said “we need to think clearly about the economics of ETH,” suggesting that Layer-2 would burn some of the fees to support ETH.
Summary: Raise your chunks, work hard on intertops and security, and think about economics. See the post for more information about each topic.
The future for Ethereum is bright.
– vitalik.eth (@vitalikbuterin) January 24, 2025
Its future looked brighter as it returned to a price of around $4,000 in recent weeks. Hit the height of 2025 In the process. However, it remains at over 21%, a record high of $4,878 since 2021.
The price of the ETH is currently at $3,824. Countless users could have a 30% chance of over $4,000 on Ethereum at the end of July. (Disclosure: Myriad is a product DecryptionParent company, Dastan. )
In Fox’s eyes, Linea’s success comes down to Ethereum’s success.
“Our North Star is really about Ethereum,” he said. “Linea’s success is derived from a world that we believe and know that Ethereum is the future global layer of decentralized finance and a wider ecosystem. Also, (it) ETH is the most important digital asset in the world.”
What more specifically?
“For us, that will be the amount of ETH capital that will be actively deployed at Linea Mainnet,” he added. “We intend to provide the best risk-adjusted returns on ETH capital.”