Linea Introduces ETH Burn Mechanism and Staking in 2025 Upgrade
Linea, an Ethereum layer-2 network by Consensys, announced upgrades to strengthen its integration with Ethereum. Key updates include:
- ETH-native staking on bridged assets
- Protocol-level ETH burn mechanism
- 85% of token supply allocated for ecosystem development
The roadmap is set for rollout in October 2025. Linea aims to enhance Ethereum's appeal to institutional investors as DeFi adoption grows. The updates position Linea to be a key player in on-chain capital markets and staking.
Notably, Linea will implement:
- Burning ETH with every transaction
- 20% of net transaction fees directed toward reducing ETH supply
- 80% of fees used to burn LINEA tokens
Currently, the LINEA token is not yet live. Linea has $159 million locked in its protocol, according to DefiLlama. The new ETH staking mechanism will allow bridged ETH to earn rewards on the mainnet, enhancing liquidity for DeFi protocols.
Linea Consortium
The formation of the Linea Consortium includes members like Eigen Labs and ENS Labs. It will govern the ecosystem fund, allocating 75% of token supply for growth initiatives, 10% for early users, and 15% for Consensys, locked for five years.
Joseph Lubin, CEO of Consensys, emphasized the importance of decentralized infrastructure for global finance, stating Ethereum is becoming a foundational trust layer for economic systems.