Linea, the zkEVM Layer 2 developed by Consensys, has officially begun burning ETH at the protocol level. Every transaction on Linea contributes to Ethereum’s security and deflationary model by permanently removing ETH from circulation.
Unlike traditional fee structures on L2s where the majority of the gas fee either stays on-chain or rewards validators or sequencers Linea’s design directs the base fee portion straight to Ethereum L1, where it gets burned in line with EIP-1559.
This move makes Linea one of the first major rollups to return economic value to Ethereum, rather than extract it.
Today, we're setting a new standard for Ethereum Layer 2.
— Linea.eth (@LineaBuild) July 29, 2025
Introducing native ETH yield, protocol-level ETH burn, and an Ethereum-native Consortium to manage the largest ecosystem fund in the space.
This is how we build the Layer 2 where Ethereum wins. pic.twitter.com/lVr5eFV2kr
This burn mechanism could be a pivotal moment in the ongoing debate around whether L2s are parasitic or symbiotic to Ethereum. While L2s reduce load and fees on Ethereum, critics argue that they hoard value capturing users and volume without giving back to the L1’s security or economics.
Linea’s burn model tells otherwise:
- Base fees = Ethereum revenue
- Sustainable scaling = Deflation + Security
It’s no longer just about building on Ethereum... it’s about building for Ethereum.
Tokenomics for the Public
Most L2 launches have followed a familiar pattern: massive VC allocations, small airdrops and years of lockups that skew governance. Linea’s upcoming token design promises a different approach. 85% of the total token supply is earmarked for public and ecosystem usage with no confirmation of VC allocations so far.
While many rollups chase gaming and consumer social, Linea is doubling down on its strengths: DeFi primitives and capital efficiency.
Here’s why Linea's step is unique:
- Native ETH staking yield integration (via EigenLayer and others)
- Restaking support and direct capital flows back to Ethereum
- Dapp ecosystem centered around composability and trustless architecture
If executed well, Linea could become the premier rollup for capital allocators and DeFi protocol deployments a credible hub for the “serious money” in crypto.
Scaling Ethereum and the Environment
There’s also a subtle but important climate narrative here.
Ethereum’s switch to Proof of Stake already slashed energy use by ~99.95%. By pushing transactions to Linea (which settles efficiently on Ethereum), and burning ETH in the process,** Linea:**
- Reduces gas costs per user
- Improves Ethereum’s throughput
- Contributes to a deflationary, lower-emission financial base layer
This could make Linea a go to option for climate-conscious builders, especially given Consensys’ long-standing ESG focus.
MetaMask & Aave’s Stablecoin Earn
This launch also comes in the same week as MetaMask’s new “Stablecoin Earn” feature, powered by Aave and available directly in the MetaMask app.
MetaMask now enables users to deposit USDT, USDC, or DAI and earn yield from Aave V3, starting with Linea and soon other L2s. The experience is native, permissionless, and fully integrated.
Together, MetaMask’s push and Linea’s burn mechanism are painting a bigger picture:
We’re not just scaling Ethereum. We’re refining it economically, experientially and environmentally.
What do you think about this development? Let us know @EtherWorld!
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- Will Fusaka Be Ready in Time? Vitalik's 2025 Vision
- Glamsterdam: The Next Upgrade After Fusaka
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