In brief
- The LINEA token will begin its airdrop process on September 10.
- More than 9 billion tokens will be available to early users when the claim opens.
- An additional 75% of the total supply will ultimately be distributed to ecosystem participants.
Ethereum layer-2 network Linea aims to use its upcoming LINEA token as an incentive to draw the world’s capital to Ethereum.
Described by backers as the most Ethereum-aligned layer-2 network, Linea will offer native yield to ETH stakers, as well as an ecosystem fund made up of around 54 billion LINEA tokens to draw users to its network.
Linea’s long-awaited token generation event (TGE) is coming on September 10. Here’s a look at everything you need to know about what the LINEA token is and who can claim it.
What is the LINEA token?
Distributed by Swiss nonprofit the Linea Association, LINEA is the native token of the Ethereum layer-2 network of the same name. The network was developed by Ethereum software development firm, Consensys, and Linea is described an “extension” of the established layer-1 network. (Disclaimer: Consensys is one of 22 investors in an editorially independent Decrypt).
Unlike other layer-2 network tokens, LINEA will not act as the native gas token for the Linea network. Instead, Linea will use ETH as its gas token to pay transaction fees. The LINEA token also differentiates itself from other layer-2 network tokens, as it does not have any governance powers and it is subject to a buyback and burn mechanism.
In other words, using a portion of the ETH revenue it earns from transaction fees, the network will buy LINEA and subsequently burn it, or effectively remove it from the circulating supply.
The token will maintain a total supply of 72,009,990,000 LINEA, or 10 times the initial circulating supply of Ethereum.
When is LINEA dropping?
The LINEA token generation event (TGE) will take place on September 10, at which point any eligible airdrop participants can begin the claim process.
Eligible parties will have up to 90 days to claim their LINEA tokens. After that time, any unclaimed LINEA tokens will be added to the ecosystem fund and subsequently distributed by the Linea Consortium.
Who will get the LINEA airdrop?
The LINEA token will be distributed in three major buckets: early users, ecosystem participants, and the Consensys treasury.
10% Early Adopters
Early users of Linea’s network that earned points via the Linea Voyage and Linea Surge campaigns are eligible to claim their respective share of around 10% of the LINEA supply. In order to be eligible, campaign participants must have achieved at least 2,000 points in the Voyage campaign and 15,000 points in the Surge campaign.
This criteria and the elimination of around 800,000 sybil wallets, or those who tried to game the system to earn the token, left around 750,000 eligible wallets to split 9.3 billion LINEA tokens.
A further 1% of the early adopters bucket is set aside for strategic builders in the Linea ecosystem, but those tokens will be directly distributed and will not be claimed as part of the airdrop.
An airdrop eligibility checker was released by Linea on September 3.
75% Linea Ecosystem Participants
The largest chunk of LINEA tokens, 75% of the total supply, will be awarded to active participants within the Linea ecosystem and distributed by a collective body of Ethereum-aligned entities dubbed the Linea Consortium.
Made up of firms like publicly traded Ethereum treasury SharpLink Gaming, ENS Labs, Eigen Labs, and Consensys, the consortium is mandated to distribute the ecosystem fund to those helping propel the Linea network and Ethereum.
“It’s users, it’s builders, it’s liquidity providers, it’s institutions, it’s creators… anything or anyone that’s going to help make Ethereum and Linea successful,” Head of Linea Declan Fox told Decrypt in July.
Small portions of the 75% have already been approved for distribution by the consortium, including 4% at TGE for liquidity providers during the Linea Surge event. Distribution of a further 1 billion LINEA tokens was approved as part of Linea Ignition, a liquidity bootstrapping event running through October 26.
15% Consensys Treasury
The final 15% of the LINEA supply is set aside for Consensys, the development firm that incubated the layer-2 network. All 15% of the tokens set aside for the software firm are locked up for five years.
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