Linea Reveals 85% Ecosystem Token Allocation, Native ETH Yield, and Sharplink Partnership

Ethereum Layer 2 network Linea has unveiled a flurry of Ethereum-centric ecosystem designs, including an ETH buy-and-burn mechanism, native yield on ETH, and a partnership with Sharplink Gaming.

Additionally, 85% of the supply of the blockchain’s upcoming token, which does not yet have a release date, has been allocated to developing Linea’s ecosystem. 10% will be distributed as an airdrop to early users, with the remaining 75% to be used for future airdrops, incentive programs, grants, or funding of public goods.

Linea, developed by blockchain software firm Consensys, will also work closely with Sharplink Gaming, the Ethereum treasury company helmed by Consensys founder and Ethereum co-founder, Joseph Lubin.

Lubin and Sharplink will lead Linea’s Ethereum-aligned consortium, which will comprise other Ethereum mainstays, including Eigen Labs and ENS Labs. The consortium will provide guidance and support for the development of Linea for at least the next decade.

By assisting with the growth and scaling of dApps on Linea, the consortium will focus on Linea’s contribution to the Ethereum ecosystem as a whole, aiming to bring the ecosystem closer together and address the liquidity fragmentation problem that Ethereum has been struggling with over the last few years.

Linea will also directly support the price of ETH, with 20% of all net transaction fees at the protocol level being paid in ETH and burned to ensure value accrual to the Layer 1 over time.

The network aims to provide onchain users with the most productive environment for their ETH, featuring native staking on bridged ETH, expected to be available by October 2025. The native staking model will unlock boosted yields on bridged assets, enabling DeFi users to earn both staking rewards and native dApp yields.

Declan Fox, Linea’s product lead, told The Defiant that Linea seeks to become the onboarding point for Ethereum for all users, whether they are institutional or retail.

Fox views DeFi as a primary building block for any ecosystem, and said Linea’s goal is to lead the world of onchain finance by doubling down on Ethereum alignment, pairing that mentality with existing infrastructure on Linea.

The network is already active in niches such as payments, through MetaMask and the MetaMask card, as well as onchain identity in the form of ENS subnames, which are set to become more important as Know Your Customer (KYC) verification becomes more prevalent in DeFi activations such as ICOs and tokenized securities trading.

“We are witnessing an architectural reset in global finance, where credibly neutral, decentralized, programmable infrastructure becomes table stakes for how value, identity, and coordination function across borders and institutions. Ethereum is emerging as the trust foundation for this new economic architecture,” said Lubin.

Linea launched its public mainnet with the deployment of its native bridge in August 2023, a little over a month after its alpha launch in July.

By July 2024, the network reached an all-time high of $722 million in total value locked (TVL), but activity on the chain has since declined, with the current TVL standing at $157 million. Network application fees declined to $530,000 in July 2025, compared to their high of $2.33 million in August 2024.