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Linea's SharpLink Play and Redesigning The Ideal L2 For Ethereum

Linea's SharpLink Play and Redesigning The Ideal L2 For Ethereum

One of most prominent L2s has big plans for their TGE 👀

DeFi Dad & Nomatic
August 09, 2025

Linea recently made a major announcement related to their long anticipated LINEA token TGE, one that sets new expectations for how L2s should align with the best interests of Ethereum and ETH holders.

Today, we're setting a new standard for Ethereum Layer 2.
Introducing native ETH yield, protocol-level ETH burn, and an Ethereum-native Consortium to manage the largest ecosystem fund in the space.
This is how we build the Layer 2 where Ethereum wins.
— Linea.eth (@LineaBuild)
12:11 PM • Jul 29, 2025

First, Linea will be the first L2 to burn ETH at the protocol level, where 20% of all net transaction fees (paid in ETH) will be burned. This benefits us as ETH holders by reducing the supply of ETH, supporting Layer 1 value accrual, and increasing the value of ETH.

Second, the bridged ETH which normally sits idle for L2s, will generate staking rewards. When users bridge ETH to Linea, it will be natively staked, generating the best risk-adjusted returns for liquidity providers, fueling Linea’s DeFi ecosystem.

Third, Linea’s token distribution is absolutely radical compared to the precedent set by other L2s such as Arbitrum or Optimism. In fact, LINEA’s token distribution reflects the distribution of the Ethereum Genesis claim and puts the ecosystem first, directing 85% of tokens towards users, builders, Ethereum public goods, and R&D.

85% Ecosystem (75% development fund + 10% early users)
15% Consensys treasury (5-year lockup)

Lastly, the massive fund expected from staked ETH yield and LINEA tokens will be managed by the Linea Consortium, a council of trusted Ethereum-native organizations already strengthening Ethereum, including Consensys, Eigen Labs, ENS, Status, and SharpLink.

In a new episode of The Edge Podcast, we explore the origins of Linea inside ConsenSys, and how they surprised us all by redesigning the ideal L2 for Ethereum, one that better aligns with ETH value accrual. Plus, we dive into how SharpLink could play a significant role bootstrapping ETH liquidity on Linea, how Linea governance will work, how teams like Etherex are growing the ecosystem, and what it all means as we draw closer to the LINEA TGE.

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