Linea, an Ethereum layer-2 network incubated by Consensys, has unveiled a comprehensive upgrade roadmap scheduled for October 2025. The overhaul introduces three core innovations: ETH-native staking for bridged assets enabling mainnet rewards, a protocol-level ETH burn mechanism allocating 20% of net transaction fees to reduce Ethereum's supply, and a deflationary model for its upcoming LINEA token where 80% of fees burn the capped-supply token.
The token distribution plan allocates 75% of LINEA supply to the newly formed Linea Consortium—comprising Eigen Labs, ENS Labs, SharpLink Gaming, Status, and Consensys—for ecosystem development. Another 10% is reserved for early users, while Consensys' 15% share will be locked for five years. Declan Fox, Head of Linea, emphasized this design "positions Ethereum to meet sophisticated capital needs as TradFi onboards to DeFi" while creating long-term value in LINEA's token economy.
With $159 million currently locked in the protocol, Linea's upgrade directly responds to Ethereum co-founder Vitalik Buterin's January 2025 call for L2s to support ETH economics. Joseph Lubin, Consensys CEO, stated the move reinforces Ethereum as "the trust foundation for new economic architecture", highlighting Linea's unique alignment through fee-burning mechanics that return value to Ethereum's base layer.