According to the team behind Linea, it would be the “First L2” to introduce an ETH burning mechanism.
The currency of the Ethereum network continues to cross an inflationary period.
On July 29, the Linea team, a second layer (L2) network of Ethereum, announced a series of significant updates that promise to transform its integration with the ecosystem.
Among the novelties are the generation of Yield (a passive income mechanism), A Burning Eth procedure and the formation of a native Ethereum consortium “to manage the largest fund (of Ethers) in the sector.”
ETH burning in an L2: a milestone for line and ethereum
They explain from line that this chain will become the “First L2 to implement a burning mechanism of ETH at the protocol level.” 20% of all net rates transaction in this L2 will be burned.
This burning process implies Permanent ETH elimination from circulationwhich will exert a deflationary pressure on Ether’s total supply.
ETH burning is not a new concept in Ethereum. Since the implementation of EIP-1559 in 2021, a fraction of the transaction rates in the main network burns, betting on a deflationary dynamic that, as cryptootics reported it, is not being given.
At the time of this article, the data indicate that the Ether supply beat the burning of that token by 0.12% From The Merge update, imposed in September 2022:
In the last 30 days, Ether’s supply grew compared to the previously mentioned period, surpassing burning by 0.7%.
With the burning of ETH online, if the demand for this L2 and the use of Ether increase, a favorable environment for the deflation of the Ethereum currency could be generated, such as It happened between January 2023 and February 2025.
Other line proposals
Line introduce Yield on decentralized finance platforms (defi) for ETH “bridge” (Bridged Eth), Where deposits generate staking rewards For liquidity suppliers (Liquidity ProvidersLP).
LP are users who They provide assets to liquidity poolsfacilitating transactions on the defi platforms in exchange for a part of the commissions generated. These suppliers accumulate Staking’s yields along with the benefits derived from the defi activity in the network.
Linea also created the one who considers the largest Ethereum ecosystem background, with the 85% of the token line for the community (75% for development, 10% for early users) and 15% to consensys, blocked for five years.
This fund will be managed by a consortium of organizations such as Consensys, Eigen Labs and Ens Domainsamong others.
Ethereum community responses to the line announcement
From the on-chain grow the foot analysis site They assure that burning online implies a “huge” step For the Ethereum ecosystem.
According to that source, line, launched in 2023, is currently in the Sixth place in terms of income Of all the second -layer networks of Ethereum (fifth of all time), having generated more than 64 million dollars (about 24,000 eth) in total revenues. So far, it has accumulated more than $ 130,000 (approximately 40 eth) in income.
For his part, Joseph Lubin, co -founder of Ethereum, concluded that «it was time to change the game of L2. The name of the game is Ethereum. Line is 100% Ethereum ».
In that same sense, Declan Fox, line developer, sentenced: “Line is built to serve a single purpose: Strengthen Ethereum.”
