TL;DR
- Linea’s L2 burns 20% of ETH gas fees per transaction while natively staking ETH to generate yield, enhancing Ethereum’s scarcity and utility simultaneously.
- 85% of LINEA tokens fund ecosystem growth via a $500M+ Ethereum R&D pool governed by a consortium including Consensys and Eigen Labs.
- Enterprise-ready zkEVM infrastructure delivers Visa/Mastercard integration and full Ethereum toolchain compatibility without code changes.
Consensys has unleashed Linea, a paradigm-shifting Ethereum Layer 2 designed to transform ETH into a deflationary powerhouse while scaling the network without compromise. Unlike conventional rollups, the blockchain’s architecture channels value directly to Ethereum’s core through revolutionary tokenomics, protocol-level burns, and native yield mechanics.
By using ETH as its core economic driver, the protocol enhances Ethereum’s financial principles while providing high-level scalability for companies such as Visa and JP Morgan.
Today, we're setting 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
ETH as the Deflationary Heartbeat
Every Linea transaction triggers a dual-burn mechanism: 20% of ETH gas fees are permanently destroyed, reducing ETH’s supply, while 80% burns LINEA tokens, creating symbiotic deflationary pressure. Bridged ETH is natively staked, generating risk-adjusted yields for liquidity providers and turbocharging DeFi activity. “ETH evolves from transactional fuel to a yield-bearing, scarcity-enhancing asset,” the team declared, noting this transforms Ethereum’s base-layer economics.
Ecosystem-First Tokenomics
A staggering 85% of LINEA’s total supply fuels Ethereum’s growth:
- 75% flows into the Linea Ecosystem Fund, crypto’s largest at over $500 million equivalent, dedicated to Ethereum R&D, public goods, and developer grants.
- 10% rewards early contributors and adopters.
- Consensys retains just 15% under a strict 5-year lockup, signaling unwavering commitment to Ethereum’s decentralized future. The fund is governed by the Linea Consortium (Consensys, Eigen Labs, ENS, Status), ensuring transparent, community-aligned stewardship.
Zero-Friction Ethereum Equivalence
As a Type-2 zkEVM rollup, the protocol guarantees full bytecode-level compatibility with Ethereum. Developers deploy existing contracts instantly, no rewrites or new tooling needed. Users experience identical interactions at 100x lower cost, with seamless integration of future Ethereum upgrades like Verkle trees. “This is scaling without fragmentation,” the Consensys CTO mentioned. The blockchain offers an easy adoption route for over 50 million MetaMask users.
Institutional On-Ramp for Global Finance
Built by the team behind MetaMask and Infura, the layer 2 integrates natively with Mastercard’s tokenization platform, Visa’s settlement rails, and JP Morgan’s Onyx blockchain. Its institutional-grade infrastructure supports compliant custody, KYC/AML modules, and cross-border payment channels, positioning Ethereum as the backbone for regulated DeFi. “Linea doesn’t just scale Ethereum; it bridges TradFi and DeFi at the protocol level,” noted a Mastercard executive.
