What is Linea (LINEA)?

Deep Dive

1. Purpose & Value Proposition

Linea aims to scale Ethereum by processing transactions off-chain via zk-rollups, reducing costs and latency while preserving Ethereum’s security. Unlike some L2s, Linea avoids fragmenting Ethereum’s economic value: ETH remains the gas token, and 20% of transaction fees are burned to support ETH’s scarcity (Linea Blog). This alignment positions Linea as a complementary scaling layer rather than a competitor.

2. Technology & Architecture

Linea uses zkEVM (zero-knowledge Ethereum Virtual Machine), enabling full compatibility with Ethereum’s tooling and smart contracts. Developers can deploy existing dApps without code changes, benefiting from near-instant finality and lower fees. The network also integrates privacy features for enterprise use cases, such as SWIFT’s pilot for interbank messaging (The Defiant).

3. Tokenomics & Governance

LINEA’s tokenomics focus on ecosystem growth:
- 85% of supply allocated to grants, liquidity incentives, and R&D over 10 years.
- Dual burn mechanism: 20% of ETH fees burned, 80% used to buy and burn LINEA, linking its value to network usage (CoinMarketCap).
- No governance rights – strategic decisions are made by the Linea Consortium (ConsenSys, ENS Labs, Eigen Labs, etc.), avoiding DAO-related inefficiencies.

Conclusion

Linea combines Ethereum’s security with scalable infrastructure, prioritizing ecosystem growth through aligned incentives and a burn-driven economic model. Its zkEVM architecture and institutional partnerships (e.g., SWIFT) position it as a bridge between decentralized and traditional finance. How will Linea’s focus on ETH-aligned economics influence broader L2 adoption as Ethereum scales?