Original | Odaily Planet Daily ( @OdailyChina )

Author | Asher ( @Asher_0210 )

On Ethereum's 10th anniversary, Linea, ConsenSys's Layer 2 Ethereum network, officially unveiled its token economics model last night, sparking widespread community interest. Although the TGE, originally scheduled for Q1 2025, has been postponed, this announcement is seen as a significant signal that the TGE is approaching.

Linea is an L2 network built on Ethereum, launched by Ethereum infrastructure giant ConsenSys. Since its mainnet launch in 2023, it has rapidly attracted a large number of users thanks to its deep integration with MetaMask and ecosystem task incentives. Linea previously promised to distribute token airdrops to early users through the LXP (Linea Experience Points) system. Now, with the release of the token economic model, this process is gradually entering the redemption phase.

Who pays gas fees? ETH, not LINEA

On the Linea network, ETH is the sole gas token used to pay transaction fees. LINEA is not a gas token and does not have on-chain governance rights. Currently, the Linea protocol does not have a DAO; governance is managed by Consensys. Furthermore, LINEA tokens have not been distributed to any employees or investors.

A portion of the fees collected by L2 will be used to burn ETH and LINEA tokens. The core purpose of the LINEA token is to incentivize ecosystem development. After deducting L1 costs from L2 network revenue, 20% of gas fees will be burned, thereby reducing the supply of ETH and increasing its monetary premium. The remaining 80% of gas fees will be used to burn LINEA tokens to enhance their scarcity and value support.

LINEA will also be used to fund developers, users, liquidity providers, and Ethereum public goods. It is a token earned through participation rather than capital, emphasizing the concept of "use is participation, participation is distribution."

9% of the total supply will be used for airdrops with no lock-up period

According to official documentation, the total supply of Linea tokens is 72,009,990,000, equivalent to 1,000 times the initial circulating supply of ETH. Its distribution method echoes Ethereum's genesis distribution to demonstrate its long-term alignment with the broader ecosystem, with 85% of the supply dedicated to the ecosystem and the remaining 15% allocated to the Consensys treasury. The detailed token distribution ratio is as follows:

• Early Contributors: 10% of the total token supply. Early adopters will receive 9% of the total token supply, which will be airdropped at the TGE with no lock-up period. This distribution will be made to users who have received LXP. An additional 1% of the total token supply will be reserved for strategic builders within the Linea ecosystem and fully unlocked at the TGE.
• Ecosystem: 75% of the total token supply. This portion of tokens will be allocated to the Ecosystem Fund (to be established as a non-stock entity headquartered in the United States), which will be managed by the Linea Alliance (a council composed of Ethereum native developers), including ENS Labs, Eigen Labs, SharpLink, Status, and Consensys.
• Treasury: 15% of the total token supply. This portion of tokens will be locked for five years and cannot be transferred during the lockup period, but can be deployed within the ecosystem, such as as liquidity or staking funds, to support the health and consistency of the protocol.

Linea Token Economic Model

In addition, approximately 22% of the token supply (15.8 billion LINEA tokens) will be available for circulation at the TGE, including airdrops to early contributors, ecosystem activation programs, and allocations for liquidity provision.

Official response: Snapshot of some tokens airdropped during TGE has been completed

Linea project lead Declan Fox responded to a user's question on the X platform regarding the LINEA token economics model, stating that a snapshot of the tokens airdropped during the TGE has been completed, and all Sybil attack filtering has been completed. Furthermore, this airdrop does not involve CEX listing, InfoFi, or other asset dilution, and the funds will not flow to the team or investors.

It also stated that users who participate in Linea voyages and obtain LXP will receive this 9% reward of airdropped tokens, but there is a minimum threshold threshold for LXP points, and the specific standards have not yet been announced.

Finally, Declan Fox stated that the token TGE is about to be promoted, but no information such as token airdrop inquiries and token claims has been released yet. Users should be cautious about being deceived and protect their own property safety.

Linea Airdrop Prediction: LXP threshold may be 1500, and each point may be worth up to $0.3

According to the record of an AMA question-and-answer activity reported by Linea project ambassador zETHerka.eth ( @zETHerka ) in March of this year, addresses with less than 1500 LXP points but rich on-chain indicators (transaction volume, wallet age, number of transactions) may also be taken into account. It can be concluded that LXP points above 1500 may be a standard for token airdrops.

According to on-chain data, there are currently approximately 495,000 addresses with LXP points exceeding 1,500, corresponding to a total of approximately 1.496 billion LXP points. Considering that some addresses with less than 1,500 points still have high activity in the ecosystem and may also be included in the airdrop, we initially assume that over 500,000 addresses will eventually meet the airdrop requirements, totaling approximately 1.5 billion LXP points.

According to the published token economics model, Linea plans to allocate 6.48 billion tokens for airdrops and user incentives. Based on this calculation, each LXP point can be redeemed for approximately 4.32 LINEA tokens (6.48 billion ÷ 1.5 billion = 4.32). This redemption ratio does not include any subsequent multipliers or weighting adjustments and is only a base estimate.

Furthermore, Linea's initial circulating supply at the TGE was 15.8 billion tokens. Considering the initial circulating market capitalization of other Ethereum Layer 2 projects at TGE, which generally ranged from $600 million to $1 billion, a reasonable initial price range for LINEA tokens is estimated to be between $0.035 and $0.06. Therefore, the value of each LXP point in a LINEA token will be between $0.15 and $0.30.