On July 29, the Linea group, a second layer (L2) community of Ethereum, introduced a collection of great updates that promise to rework its integration with the ecosystem.
Among the many novelties are the technology of yield (a passive earnings mechanism), A Burning Eth process and the formation of a local Ethereum consortium “to handle the most important fund (of Ethers) within the sector.”
ETH burning in an L2: a milestone for line and ethereum
They clarify from line that this chain will grow to be the “First L2 to implement a burning mechanism of ETH on the protocol degree.” 20% of all internet charges transaction on this L2 might be burned.
This burning course of implies Everlasting ETH elimination from circulationwhich can exert a deflationary strain on Ether’s complete provide.
ETH burning will not be a brand new idea in Ethereum. Because the implementation of EIP-1559 in 2021, a fraction of the transaction charges in the primary community burns, betting on a deflationary dynamic that, as cryptootics reported it, will not be being given.
On the time of this text, the info point out that the Ether provide beat the burning of that token by 0.12% From The Merge replace, imposed in September 2022:
Within the final 30 days, Ether’s provide grew in comparison with the beforehand talked about interval, surpassing burning by 0.7%.
With the burning of ETH on-line, if the demand for this L2 and using Ether improve, a good atmosphere for the deflation of the Ethereum forex may very well be generated, reminiscent of It occurred between January 2023 and February 2025.
Different line proposals
Line introduces yield on decentralized finance platforms (defi) for ETH “bridge” (bridged ETH), The place deposits generate staking rewards For liquidity suppliers (Liquidity SuppliersLP).
LP are customers who They supply property to liquidity swimming poolsfacilitating transactions on the defi platforms in trade for part of the commissions generated. These suppliers accumulate Staking’s yields together with the advantages derived from the defi exercise within the community.
Linea additionally created the one who considers the most important Ethereum ecosystem background, with the 85% of the token line for the neighborhood (75% for growth, 10% for early customers) and 15% to consensys, blocked for 5 years.
This fund might be managed by a consortium of organizations reminiscent of Consensys, Eigen Labs y ENS Domainsamongst others.
Ethereum neighborhood responses to the road announcement
From the on-chain develop the foot evaluation web site they be certain that on-line burning implies a “enormous” step For the Ethereum ecosystem.
In response to that supply, line, launched in 2023, is presently within the Sixth place by way of earnings Of all of the second -layer networks of Ethereum (fifth of all time), having generated greater than 64 million {dollars} (about 24,000 eth) in complete revenues. Up to now, it has accrued greater than $ 130,000 (roughly 40 eth) in earnings.
For his half, Joseph Lubin, co -founder of Ethereum, concluded that “it was time to vary the sport of L2. The secret is Ethereum. Line is 100% Ethereum ».
In that very same sense, Declan Fox, line developer, stated: “Line is constructed to serve a single function: strengthen Ethereum.”
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