Linea Launches ETH Staking And Burn Mechanism For L2 Alignment
The post Linea Launches ETH Staking And Burn Mechanism For L2 Alignment appeared on BitcoinEthereumNews.com.
The Consensys-developed Linea network says it will become one of the first Ethereum layer-2 networks to commit to burning Ether as part of its network design, as it shared new details of its upcoming token generation event and airdrop. Linea announced new staking and burning mechanisms for its upcoming token launch in an effort to become more aligned with the layer-1 blockchain, which it hopes will make the network the “home for ETH capital,” according to a statement sent to Cointelegraph. The move comes amid growing concern that layer-2 networks have been leeching chain activity and fee income from the Ethereum mainnet. A LINEA token generation event is set to take place later this year, with 85% of the token supply going to the ecosystem, and the remaining 15% will be allocated to the Consensys treasury under a five-year lockup. When is the Linea token generation event? Declan Fox, global product lead for Linea, told Cointelegraph that they did not have the exact date for the token generation event and would share airdrop criteria up to a week before the event. A new staking mechanism, which is expected to be launched in October, will enable users to earn staking rewards even when they bridge Ether (ETH) to Linea. This makes the ETH productive as it can also be used for DeFi activities on the layer-2 network. “Linea is the only L2 with total Ethereum compatibility, and we wanted the economics to be as aligned and supportive as the technology,” said Joseph Lubin, founder and CEO of Consensys. He explained that harvested staking rewards are distributed on Linea to DeFi protocols, boosting yield for active liquidity. “This creates a flywheel for attracting capital through sustainable incentives, where deeper liquidity drives more transaction volume, therefore attracting more deposits.” Related: Vitalik Buterin proposes…
