Linea Launches the Most Ethereum-Centric Layer 2 Yet

Linea is rewriting the rules of Layer 2 design — not by mimicking Ethereum, but by becoming its most natural extension. In its latest announcements, Linea introduced a bold framework featuring native ETH yield, protocol-level ETH burn, and an Ethereum-native Consortium to manage the largest ecosystem fund in L2 history.

With more than $100B in $ETH staked and over $25T in transaction volume, Ethereum is already the world’s dominant settlement layer. Now, Linea aims to accelerate Ethereum’s dominance by offering aligned economics, capital efficiency, and unparalleled developer incentives.

First-Ever ETH Burn on a Layer 2

In a move that directly benefits the Ethereum mainnet, Linea becomes the first L2 to burn ETH at the protocol level. Specifically, 20% of all net transaction fees (paid in ETH) will be burned — permanently reducing ETH supply, supporting Layer 1 value accrual, and driving long-term ETH value.

This mechanism is a first among rollups and highlights Linea’s commitment to reinforcing Ethereum’s economic model, not extracting from it.

Bridged ETH Will Earn DeFi Rewards

Unlike most L2s that idle bridged ETH, Linea introduces native ETH yield. ETH deposits on Linea will earn staking rewards, which are distributed to liquidity providers (LPs). LPs also benefit from returns across DeFi activity on the network, creating some of the best risk-adjusted returns in crypto.

This means users no longer have to choose between capital efficiency and yield — Linea delivers both.

A $100B Ecosystem Fund with Ethereum-Aligned Distribution

Linea is also launching the largest L2 ecosystem fund to date — with 85% of tokens going to the community:

• 75% toward builders and ecosystem development
• 10% for early users
• 15% to the ConsenSys treasury, with a 5-year lockup

There are no insider allocations. No private rounds. No value extraction. Just Ethereum-aligned incentives, echoing the Genesis spirit of ETH’s original launch.

Managed by the Ethereum-Native Consortium

The newly formed Linea Consortium will oversee fund allocation and governance. Founding members include:

• EigenLayer
• ENS Domains
• SharpLink
• Status
• ConsenSys

This group consists of projects that already strengthen Ethereum’s infrastructure — and more members are expected to join soon.

Linea’s Vision: Where Ethereum Wins

Linea combines full Ethereum equivalence (same dev tooling, same opcodes) with ETH as the native gas token, ETH burns, capital-efficient mechanics, and ecosystem-first tokenomics. This makes it the most Ethereum-aligned L2 in existence — one where both technology and economics serve Ethereum first.