Linea Tokenomics and Burn Mechanics Explained: Key Insights for Investors

I want to clarify the details about Linea's recent updates for everyone. Yesterday, Linea kept teasing the community with a series of updates related to their token drop, so I decided to compile all the relevant information into a single post to save you time on clarifications. Linea has now unveiled its tokenomics. The total circulating supply will be 72 billion LINEA tokens, with 15% allocated to a vault managed by Consensys, locked for five years. The remaining 85% of tokens are designated for the ecosystem. Of these, 9% will be distributed as a drop to early users holding LXP tokens, 1% is reserved for developers building on the ecosystem, and an additional 10% will be used to provide liquidity for listings. Regarding the token distribution and drop, the distribution will depend on multiple factors: wallet on-chain metrics, the presence of LXP tokens, and snapshot data that have already been collected, so we're only waiting for the Token Generation Event (TGE). There is no specific information yet about LXP-L, but it is known that they will be used in future liquidity incentive programs. Additionally, the network’s design is that all transaction fees will be used for token burn mechanisms. Specifically, 20% of those fees will go toward burning ETH at the network level, while the remaining 80% will be allocated to buybacks and burning of LINEA tokens. This structure seems aimed at creating a deflationary environment for LINEA, potentially increasing its value over time. The tokenomics and fee burn strategies reflect a thoughtful approach towards sustainable growth and community incentives.