What is Linea (LINEA)?

Deep Dive

1. Purpose & Value Proposition

Linea aims to scale Ethereum without fragmenting its value. Unlike many L2s that prioritize their own tokens, Linea’s mechanics strengthen ETH:
- ETH burning: 20% of transaction fees (paid in ETH) are burned, reducing supply and tying Linea’s usage to ETH’s deflationary model.
- Staked ETH yield: Bridged ETH is automatically staked, generating yield for users and enhancing Ethereum’s liquidity (Linea Blog).
- Institutional focus: Designed for enterprise adoption, with partners like SWIFT testing cross-border payments (TheMoneyApe).

2. Technology & Architecture

Linea is a Type-2 zkEVM, fully compatible with Ethereum’s Virtual Machine:
- Developers can deploy existing Ethereum dApps without code changes.
- Zero-knowledge proofs bundle transactions, achieving ~5,000 TPS with near-instant finality.
- Integrates with Consensys products like MetaMask and Infura for seamless user/developer experiences (DIAdata_org).

3. Tokenomics & Governance

The LINEA token focuses on ecosystem growth, not gas fees or governance:
- Supply: Fixed at 72 billion tokens. 85% allocated to community incentives, public goods, and Ethereum R&D via a 10-year fund managed by the Linea Consortium (Consensys, ENS, Eigen Labs).
- Deflationary design: 80% of fees buy back and burn LINEA, linking its value to network usage.
- No investor/team allocations: 15% held by Consensys under a 5-year lockup (The Block).

Conclusion

Linea positions itself as Ethereum’s scaling partner, combining institutional-ready infrastructure with mechanisms that directly benefit ETH’s scarcity and utility. By burning ETH, staking assets natively, and avoiding speculative token dynamics, it aims to become the L2 where "Ethereum wins."

What innovations might emerge as Linea’s ecosystem fund deploys $30B+ in resources over the next decade?