Ethereum’s Layer 2 network, Linea, has recently unveiled numerous design elements supportive of the Ethereum ecosystem. These include an effective Ethereum buy-and-burn system, native yield on Ethereum, and a partnership deal with the brand SharpLink Gaming. All of these developments point to an upward progression for Ethereum and its wider environment.
Linea’s Ecosystem Expansion and Its Allocation of Supply
An innovative product of blockchain software company Consensys, Linea, has dedicated a significant portion of its upcoming token supply to the development of its ecosystem. While the release date for the token is not yet announced, the allocation plan has been disclosed. Of the overall token supply, 85% is earmarked for ecosystem development. 10% will be proportioned out as an airdrop to its early adopters, and the remaining 75% is set aside for future airdrops, incentive programs, grants, and public goods funding.
A Collaboration with SharpLink Gaming
Linea plans to work intimately with SharpLink Gaming, which is under the command of Consensys founder and also the co-founder of Ethereum, Joseph Lubin. Lubin, along with SharpLink, will spearhead Linea’s consortium that embraces other Ethereum traditionalists, including ENS Labs and Eigen Labs. This consortium group’s primary goal is to support and mentor the development of Linea for at least the upcoming decade.
By aiding in the expansion and scaling of decentralized applications (dApps) on Linea, the consortium group will concentrate on Linea’s contribution towards the Ethereum system. The main aim is to unify the system and address liquidity fragmentation, which has been an Ethereum pain point for several years.
Linea’s Support for ETH Price
Linea also plans to actively buttress the price of Ethereum. The network ensures 20% of all net transaction fees at the protocol level are paid in Ethereum and subsequently burnt. This process guarantees the value accrual to Layer 1 over time, strengthening Ethereum’s price-supportive mechanism in the market.
Native Staking and Boosted Yields
Linea proposes to offer on-chain users an optimum environment for their Ethereum, through native staking on bridged Ethereum. This offering is expected to be available by October 2025. Furthermore, the native staking model will amplify yields on bridged assets, allowing DeFi (Decentralized Finance) users to earn from both staking rewards and native dApp yields.
According to Linea’s product lead, Declan Fox, the network aims to position itself as the primary Ethereum onboarding platform for all types of users, whether institutional or retail. Fox believes that DeFi is an essential building block for any ecosystem and Linea’s target is to become a leader in on-chain finance. This goal will be achieved by emphasizing on Ethereum alignment and pairing it with existing infrastructure on Linea.
Linea’s Diverse Portfolio
Linea’s active involvement in various niches, including payments through MetaMask and MetaMask card, and on-chain identity in the form of ENS subnames underlines its versatility. As Know Your Customer (KYC) verification becomes more prevalent, ENS subnames are expected to gain importance in DeFi services like ICOs and tokenized securities trading.
“Ethereum is emerging as the trust foundation for this new economic architecture,” commented Joseph Lubin. He added that “We are witnessing an architectural reset in global finance, where neutral, decentralized, programmable infrastructure becomes paramount”.
Linea’s Public Mainnet Rollout
In August 2023, Linea launched its public mainnet, following an alpha launch in July. By July 2024, it had reached an all-time high with a total locked value of $722 million. However, there has been a drop in activity since then, as its current total locked value stands at $157 million. Application fees also witnessed a decline to $530,000 in July 2025, in contrast to their earlier peak of $2.33 million in August 2024.
The above achievements and prospects reflect the immense potential of Linea and its contribution towards the success of the Ethereum ecosystem.
