ConsenSys’ Layer 2 network Linea plans to launch its native token by Q1 2025 and is establishing the Linea Association to drive decentralization.
ConsenSys’ Plans
By the end of the year, Linea, the well-known Layer 2 network from Consensys, intends to introduce a native token.
Consensys, the blockchain software development company responsible for the development of Linea and MetaMask, announced on November 13 that it plans to introduce a LINEA token by the conclusion of Q1 2025.
The project also disclosed the establishment of the Linea Association, a Swiss-based non-profit organization responsible for guiding the network toward decentralization, at the Devcon conference in Bangkok.
“By decentralizing critical elements of our ecosystem, including governance, infrastructure, and community empowerment, we aim to foster a more resilient and transparent web3,” said Joseph Lubin, chief executive officer of Consensys.
The token is expected to be distributed via airdrop to LXP point holders who participated in the Linea Voyage and Linea Park campaigns, which were initiated in October 2023 and February 2024, respectively, as well as other early adopters. The airdrop and the date for a network snapshot that determines eligibility were not disclosed.
According to DeFiLlama, the initiatives were instrumental in establishing Linea as one of the top Layer 2 networks, as the total value locked (TVL) of native DeFi applications increased by 856% year-to-date to $507 million from $53 million. According to L2beat, Network TVL experienced a 435% increase in revenue from $187 million to $1 billion during the same period.
Since the introduction of its mainnet in August 2023, Linea has processed over 230 million transactions. According to GrowThePie, the network has hosted approximately 223,600 users in the past 24 hours.
LINEA Utility
LINEA’s primary function will be governance, enabling tokenholders to engage in on-chain voting and decision-making procedures. Payments and DeFi use cases will also be supported by LINEA.
Linea users have the ability to utilize cryptocurrency for real-world payments by connecting their wallets to the MetaMask debit card through the MasterCard network. LINEA holders will have the option to secure transaction fees or obtain priority access to payment services.
Nicolas Liochon, the founder of Linea and a member of the Linea Association board, informed The Defiant’s Camila Russo that all of these payment use cases are essentially generating additional services on top of Linea. These services will be available to token holders or will be paid for in tokens.
The route to decentralization
The LINEA and Linea Association launches are integral components of the project’s roadmap to decentralization, which commences with governance.
Linea’s proposed governance model will consist of a multi-layered structure that includes a Board of Directors, a General Assembly, employees who report to an Executive Director, and a token-based governance body. Nevertheless, Liochon stated that its governance mechanism will develop in response to community feedback.
“We will be releasing a significant number of documents that describe our current perspective on governance, and we will be soliciting feedback on it,” Liochon stated. “We do not regard it as necessarily conclusive…” The final design will be determined by the feedback we receive, and we will conduct numerous iterations that are very research-oriented and ideas-oriented.
Lubin stated that the proposed system is inspired by the Ethereum Foundation, which provides support for the development of Ethereum but does not exert significant control over the direction of the protocol and ecosystem.
Lubin stated, “The Ethereum Foundation is not responsible for the platform’s evolution.” “It facilitates specific activities, distributes funds to worthwhile projects that generate value for the ecosystem, and organizes an exceptional developer conference.” The Linea Association will operate in accordance with these principles. Elements of the ecosystem are being bootstrapped.
The implementation of decentralized sequencing, a critical feature for Layer 2 networks, is also included in Linea’s decentralization roadmap. The team has stated that this will be implemented in stages, beginning with established participants and progressively transitioning to a completely decentralized proof-of-stake system.
The team released a proposal on Oct. 2 entitled “Towards Linea’s Decentralization,” which delineated a comprehensive framework for the modification of the network’s block validation, block proposal, and finalization processes.
