Linea's tokenomics introduce a radical, dual-defationary mechanism that directly links network health to token scarcity for both $ETH and $LINEA . This is a game-changer for Layer 2 scaling solutions.
The Mechanics of Dual-Deflation
Unlike most L2s where the native token is used for gas, $ETH remains the exclusive gas token on Linea. The network's net revenue (fees collected minus operational costs) is then channeled into a twin-engine burn system:
20% Burn $ETH: A portion of the net L2 transaction fees collected in ETH is permanently burned at the protocol level. Linea is one of the first L2s to commit to directly reducing Ethereum's supply, reinforcing $ETH's "ultrasound money" narrative.
80% Buy-Back and Burn $LINEA: The remaining 80% of the net ETH revenue is used to automatically buy back LINEA from the open market and permanently burn it.
This process creates constant deflationary pressure on the LINEA token tied directly to network usage. More transactions on Linea mean more fees, which results in more LINEA tokens removed from circulation, making the remaining supply increasingly scarce.
Why This Model is Unique
This design flips the script by avoiding competition with ETH. Instead of using LINEA for gas, which would fragment liquidity, the dual-burn mechanism transforms Linea's success into a shared economic benefit for the entire Ethereum ecosystem. It rewards activity with scarcity.
CTA: Is this Dual-Burn the best model for an L2 token? WHAT DO YOU THINK?
