Linea Announces ETH Burn and Native Staking Ahead of LINEA Token

• Linea to Adopt Protocol-Level ETH Burning
• LINEA Token will have a deflationary model and native staking
• 85% of the tokens will be allocated to the Ethereum ecosystem

Ethereum's Layer 2 scalability network, Linea, developed by Consensys, has revealed plans to introduce native ETH staking with a bridge, a protocol-level ETH burn mechanism, and a deflationary model for the upcoming LINEA token. The announcement anticipates the token's official launch and reinforces the platform's strategic alignment with Ethereum principles.

Today, we're defining a new standard for Ethereum Layer 2.

Introducing native ETH yield, protocol-level ETH burn, and an Ethereum-native Consortium to manage the largest ecosystem fund in the space.

This is how we build the Layer 2 where Ethereum wins. pic.twitter.com/lVr5eFV2kr

— Linea.eth (@LineaBuild) July 29, 2025

Scheduled for October, staking will allow users to earn yield on deposited ETH, with profits reinvested directly into the Linea ecosystem. Additionally, 20% of all net fees paid in ETH will be burned, contributing to the asset's scarcity on the mainnet. The remaining 80% of these fees will be used to burn LINEA tokens, establishing a deflationary mechanism proportional to network activity.

According to the team, this approach marks Linea as the first Layer 2 solution to directly burn ETH, reinforcing Ethereum's value accumulation model.

The LINEA token distribution model will reserve 85% of the total supply for the ecosystem, with 10% allocated to early adopters and the remaining 75% distributed gradually through a structured fund. The remaining 15% will be controlled by the Consensys treasury, with a five-year lockup.

This fund will be managed by a consortium of Ethereum-aligned institutions—including Consensys, Eigen Labs, Status, SharpLink, and ENS Labs. The group will operate for at least ten years, managing incentive programs aimed at builders, liquidity providers, open-source projects, and research.

Joseph Lubin, CEO of Consensys and co-founder of Ethereum, reinforced that Linea's architecture aims to provide a stable and interoperable foundation with Ethereum. "We're building for the long term; we're creating an infrastructure that institutions can trust and work with easily," he stated.

The LINEA token doesn't yet have an official launch date, but it was designed based on the original ETH distribution model. With a focus on utility, deflation, and community support, Linea aims to establish itself as a pillar of ETH liquidity in the Layer 2 ecosystem.