Ethereum’s Next Big Move: Linea Network Is Launching a Token
For the ETH ecosystem capital, Linea aspires to be the greatest location in the future. Also, the network’s developers revealed plans to introduce a LINEA token for the chain along with a corresponding ecosystem fund in order to achieve that goal. With new ecosystem mechanisms like native yield on bridging ETH and ETH burns, Consensys, the company that created Linea, stated that its strategy centers on a dedication to the Ethereum base layer.
The strategy also calls for the creation of the Linea Consortium, a collection of Ethereum-compatible businesses that includes SharpLink Gaming, a publicly traded treasury firm. Through a fund they refer to as the largest Ethereum ecosystem fund in terms of allocation, the consortium will jointly oversee 75% of the final LINEA token distribution.
Linea is going to be the chain for ETH capital. We’re building these mechanisms in this Ethereum-centric token design and economic design to basically be the best place for ETH capital.
Declan Fox, Head of Linea at Consensys
LINEA Token Launch Sparks Major Ethereum Ecosystem Expansion Plans
Consensys, Eigen Labs, ENS Labs, and Status are among the consortium members that will manage the LINEA token distribution. The project is intended to jumpstart and propel development on the network and via Ethereum. Fox claims that they want to help the layer-2 Linea network and the larger Ethereum ecosystem expand.
It’s users, it’s builders, it’s liquidity providers, it’s institutions, it’s creators… anything or anyone that’s going to help make Ethereum and Linea successful,
Fox
Ahead of Linea’s token generation event, he noted, the consortium’s whole charter should be released in the upcoming weeks. In order to create a deflationary flywheel proportionate to network activity, the network also intends to directly burn 20% of all net transaction fees (paid in ETH) and use the remaining 80% of net fees to burn LINEA.
As Linea grows, it actually provides value back to ETH holders directly,
Fox
Linea Backs ETH with Bold New Strategy Amid Scaling Controversy
However, not all investors and experts have seen Ethereum’s alignment with its layer-2s favorably, with some arguing that the scaling networks have devalued Ethereum’s mainnet. In January, Ethereum co-founder Vitalik Buterin also acknowledged this problem. According to Buterin, ecosystem developers must take ETH’s economics into account. In order to help ETH, he even proposed that layer 2 solutions burn a percentage of their fees. Linea is doing the same thing. According to Fox, the success of Ethereum determines the success of Linea.
Our north star is really about Ethereum. Linea success will be derived by the world believing and knowing that Ethereum is the future global layer of decentralized finance and the wider ecosystem, and also, that ETH is the most important digital asset in the world. For us, it will be the amount of ETH capital actively deployed on Linea mainnet. We intend to provide the best risk-adjusted return for ETH capital.
Fox
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