Linea's Token Generation Event: A Deep Dive

The Ethereum Layer-2 network Linea is preparing to launch its LINEA token, aiming to incentivize growth and capital influx into the Ethereum ecosystem. Backed by Consensys, Linea positions itself as deeply aligned with Ethereum.

The long-awaited Token Generation Event (TGE) is scheduled for September 10th. This article breaks down what the LINEA token is all about and who qualifies for the airdrop.

What is the LINEA Token?

LINEA is the native token of the Linea network, an Ethereum layer-2 solution. While Consensys developed the network, the LINEA token is managed by the Linea Association.

Unlike many layer-2 tokens, LINEA will not be used for gas fees. Linea will use ETH for transaction fees. Furthermore, LINEA does not grant governance rights. A unique aspect of LINEA is its buyback and burn mechanism. The network will use a portion of its ETH revenue (from gas fees) to buy back LINEA tokens and remove them from circulation (burn them).

The total supply is fixed at 72,009,990,000 LINEA, 10 times the initial circulating supply of Ethereum.

When is the Airdrop?

The LINEA TGE is happening on September 10th. Eligible users can begin claiming their tokens then. Claimants have 90 days to retrieve their tokens. Unclaimed tokens will be moved to the ecosystem fund, to be managed by the Linea Consortium.

Who is Eligible for the Airdrop?

LINEA tokens will be distributed among three main groups:

• Early Users (10%)
• Ecosystem Participants (75%)
• Consensys Treasury (15%)

Early Adopters (10%)

Those who earned points through the Linea Voyage and Linea Surge campaigns are eligible. A minimum of 2,000 points in Voyage or 15,000 points in Surge was required. After eliminating sybil wallets, around 750,000 wallets are eligible to share approximately 9.3 billion LINEA tokens.

A further 1% is allocated to strategic builders, distributed directly rather than via the airdrop.

Linea launched an airdrop eligibility checker on September 3rd.

Linea Ecosystem Participants (75%)

The largest portion is earmarked for active contributors to the Linea ecosystem. The Linea Consortium, a group of Ethereum-aligned organizations, including SharpLink Gaming, ENS Labs, Eigen Labs, and Consensys, will oversee distribution.

The goal is to reward those who contribute to the success of Linea and Ethereum, including users, builders, liquidity providers, and institutions. A small portion (4%) was allocated at TGE for liquidity providers during the Linea Surge event. 1 billion LINEA tokens have been earmarked for Linea Ignition, a liquidity bootstrapping event through October 26.

Consensys Treasury (15%)

Consensys, the firm behind Linea's development, will receive 15% of the LINEA supply. These tokens are locked for five years.

Key Takeaways

• LINEA Token: Native token of the Linea Layer-2 network, with a buyback and burn mechanism.
• Airdrop Date: September 10th, with 90 days to claim.
• Eligibility: Early users (Voyage/Surge), ecosystem participants, and Consensys.
• Distribution: Handled by the Linea Consortium for ecosystem participants, direct distribution for some early adopters, and a five-year lockup for Consensys' share.