Linea announces airdrop and reveals token economics
Another Ethereum Layer2 (second layer scaling solution) is preparing for an airdrop! Linea announced its $LINEA token economic model yesterday, with a total supply of 72 billion tokens, 85% allocated to the ecosystem, and 15% held by developer Consensys, locked for 5 years, with no allocation to venture capital institutions (VC).
Early contributors to the Linea ecosystem will receive a 10% token allocation, with 9% (approximately 6.48 billion tokens) airdropped to users who participated in the Voyage event and earned LXP points, and 1% (720 million tokens) allocated to strategy builders.
Source: Linea Linea announces airdrop and reveals token economics
Linea's product director Declan Fox confirmed that the airdrop snapshot has been completed and the process of filtering out witch accounts (bots, rule-breaking accounts, etc.) is underway, but the date for the token generation event (TGE) has not yet been disclosed.
Aside from the airdrop, the remaining 75% of tokens allocated to the ecosystem will be distributed through an ecosystem fund managed by the Linea Consortium, with members including Consensys, Eigen Labs, ENS Labs, and others.
The Linea ecosystem fund will be released on a decreasing basis over 10 years, with an estimated 25% used for ecosystem activation in the first 12-18 months.
Linea valuation: Estimated $LINEA listing price, LXP point value
With the Linea airdrop approaching, many early ecosystem participants and investors are curious: How much will the $LINEA token be valued at when listed?
According to the account @Linea_Universe, which focuses on the Linea ecosystem, the fully diluted valuation (FDV) of Linea is estimated at $2 billion, while the value of this airdrop (7.2 billion tokens) is $200 million, meaning 1 $LINEA is around $0.0278.
Since Linea has not allocated tokens to VCs, he estimates that the selling pressure during the initial listing may not be that large.
Another account @Airdropxiaolin analyzed the rewards of participating in the points activity, estimating a total of 1.5 billion LXP points. Currently, there are 495,000 wallet addresses with over 1,500 LXP points. Referencing the initial valuations of other Layer2 projects' TGEs, the listing price of $LINEA is estimated to be between $0.035 and $0.06, corresponding to an LXP point value of approximately 1 LXP: $0.15 - $0.3.
This means that users with LXP points reaching 1,500 could receive an airdrop worth $225 - $450.
What is Linea? Unique dual burn mechanism, using zkEVM
Linea is an Ethereum Layer 2 network incubated by the crypto wallet MetaMask developer Consensys, utilizing zkEVM Rollup technology, and has been operational since July 2023.
According to reports from Cointelegraph, Linea will be the first Layer 2 to commit to destroying Ether ($ETH), employing a unique dual burn mechanism: 20% of transaction fees will burn $ETH, and 80% will burn $LINEA tokens. Users bridging to Linea with $ETH will be automatically staked, with rewards distributed to liquidity providers.
Due to the mechanism of burning $ETH, Consensys CEO Joseph Lubin stated: 'Linea is the only Layer2 fully compatible with Ethereum.'
With over 100 million monthly users of its product MetaMask and Infrastructure as a Service (IaaS) service Infura, Consensys' Linea has gained the trust of financial platforms like MasterCard, Visa, and JPMorgan.
Source: Linea What is Linea? Unique dual burn mechanism, using zkEVM
Will Linea solve the Layer2 vampirism dilemma?
Chinese media (Foresight News) analyzes that Linea's significance lies in reversing the Layer2 'vampiric' situation concerning Layer 1, allowing ETH to become a core asset that generates yields and has deflationary properties.
However, according to L2beat data, Linea currently only occupies 1.23% of the Rollup type Layer2 market, with a total locked value (TVL) of about $500 million, indicating it still has a way to go to mature as a Layer2.
However, Consensys recently participated in leading the Ether reserve strategy for publicly listed company Sharplink Gaming, currently holding 438,200 $ETH. As more Ethereum reserve companies inject $ETH liquidity into Linea, this 'Ethereum alignment' strategy could become a differentiating advantage.
(Foresight News) states that if successful, this model could become the future L2 standard, driving the long-term prosperity of the Ethereum ecosystem.
Source: Linea Linea and related partner ecosystem of Consensys
This content is generated by crypto Agent summarizing various information, reviewed and edited by (Crypto City). It is still in the training stage and may contain logical biases or information errors. The content is for reference only and should not be considered as investment advice.
'Linea will airdrop 6.48 billion tokens! What will the valuation of LINEA be when listed? Will it be a big profit?' This article was first published in 'Crypto City'.
