Original title: (The Linea Token Economic Model is out, what is the reasonable valuation of LXP points?)
Original author: Asher, Odaily Planet Daily
As Ethereum celebrates its 10th anniversary, ConsenSys' Ethereum Layer 2 network Linea officially announced its token economic model last night, attracting widespread attention from the community. Although the originally planned TGE in Q1 2025 has been postponed, this announcement is seen as an important signal as TGE approaches.
Linea is an L2 network built on Ethereum, launched by Ethereum infrastructure giant ConsenSys. Since its mainnet launch in 2023, it has rapidly attracted a large number of users due to its deep integration with MetaMask and ecosystem task incentives. Linea previously promised to distribute token airdrops to early users through the LXP (Linea Experience Points) points system. Now, with the release of the token economic model, this process is gradually entering the fulfillment phase.
Who pays the Gas fee? ETH, not LINEA
On the Linea network, ETH is the only Gas token used to pay transaction fees. LINEA is not a Gas token and does not have on-chain governance rights. Currently, the Linea protocol does not have a DAO, and governance is operated by ConsenSys. At the same time, LINEA tokens have not been allocated to any employees or investors.
A portion of ETH and LINEA tokens collected in L2 fees will be burned. The core purpose of LINEA tokens is to incentivize ecosystem development. After deducting L1 costs, 20% of the Gas fees will be burned, thereby reducing the supply of ETH and enhancing its monetary premium. The remaining 80% of the Gas fees will be used to burn LINEA to enhance its scarcity and value support.
In addition, LINEA will be used to fund developers, users, liquidity providers, and Ethereum public goods. This is a token obtained through participation rather than capital, emphasizing the idea that 'use equals participation, participation equals distribution.'
9% of the total supply will be used for airdrops with no lock-up period.
According to official documents, the total supply of Linea tokens is 72,009,990,000, equivalent to 1,000 times the initial circulating supply of ETH. Its distribution method echoes Ethereum's genesis distribution method, indicating its long-term consistency with the broader ecosystem, with 85% of the supply dedicated to the ecosystem and the remaining 15% allocated to the ConsenSys treasury. The detailed token distribution ratio is as follows:
· Early Contributors: 10% of the total supply of tokens. Among them, early users will receive 9% of the total supply of tokens, and the airdrop will occur during TGE with no lock-up period. The allocated group consists of users who have obtained LXP. An additional 1% of the total supply of tokens will be reserved for strategic builders in the Linea ecosystem and will be fully unlocked at TGE.
· Ecosystem: 75% of the total supply of tokens. This portion of tokens is allocated to an ecosystem fund (to be established at a non-stock entity headquartered in the United States), which will be managed by the Linea Alliance (a council composed of Ethereum native developers), with members including ENS Labs, Eigen Labs, SharpLink, Status, and ConsenSys.
· Treasury: 15% of the total supply of tokens. This portion of tokens will be locked for five years and cannot be transferred during the lock-up period, but can be deployed within the ecosystem, such as for liquidity or staking funds, to support the health and consistency of the protocol.
Linea Token Economic Model
Furthermore, approximately 22% of the token supply (15.8 billion LINEA tokens) will be used for circulation at TGE, including airdrops for early contributors, ecosystem activation programs, and liquidity supply allocations.
Official response: The snapshot for the airdrop of some tokens was completed during the TGE.
Declan Fox, the project leader of Linea, responded to user questions regarding the LINEA token economic model on platform X, stating that the snapshot for the airdrop portion of the tokens was completed during the TGE. All witch attack filters have been completed previously. Moreover, this airdrop does not involve CEX listing, InfoFi, or other asset dilution, and these funds will not go to the team or investors.
Additionally, it was stated that users participating in the Linea journey and obtaining LXP will receive a 9% reward in airdrop tokens, but there is a minimum threshold requirement for LXP points, the specific standards have yet to be announced.
Finally, Declan Fox stated that they are about to advance the token TGE, but currently, no information regarding token airdrop inquiries, token claims, etc., has been released. Users are advised to be cautious and protect their asset security.
Linea Airdrop Projection: The LXP threshold may be 1500, with each point valued at a maximum of 0.3 USD.
According to the record of an AMA Q&A session reported by Linea ambassador zETHerka.eth (@zETHerka) earlier this March, addresses with LXP points less than 1500 but rich on-chain metrics (transaction volume, wallet age, transaction counts) may also be considered, leading to the conclusion that having LXP above 1500 points might be a standard for token airdrops.
According to on-chain data, there are currently about 495,000 addresses with LXP points exceeding 1500, corresponding to a total of approximately 1.496 billion LXP. Considering that some addresses that have not reached 1500 points still have high activity in the ecosystem, they may also be included in the airdrop range. Therefore, we initially assume that over 500,000 addresses will meet the airdrop conditions, totaling about 1.5 billion LXP points.
According to the published token economic model, Linea plans to allocate 6.48 billion tokens for airdrops and user incentives. Based on this, each LXP point can be exchanged for approximately 4.32 LINEA tokens (6.48 billion ÷ 1.5 billion = 4.32). This exchange ratio does not include any subsequent multipliers or weight adjustments and is only a basic estimate.
Furthermore, the initial circulating supply of Linea at TGE will be 15.8 billion tokens. Referring to other Ethereum Layer 2 projects, the initial circulating market value at the TGE stage generally ranges from 600 million to 1 billion USD, leading to a reasonable initial price range for LINEA tokens between 0.035 and 0.06 USD. Thus, the value of each LXP point corresponding to LINEA tokens will be between 0.15 and 0.3 USD.
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