ConsenSys' Linea to Launch Token by Q1 2025

Sentiment Status: Positive

Linea, the popular Layer 2 network developed by ConsenSys, has announced plans to launch its native token by the end of Q1 2025, marking a new chapter in its mission to decentralize Web3.

The announcement came on November 13 at the Devcon conference in Bangkok. ConsenSys also introduced the formation of the Linea Association, a Swiss-based non-profit designed to guide the network toward greater decentralization. "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, CEO of ConsenSys.

The upcoming token launch is expected to reward those who supported Linea's journey early on. The LINEA token will likely be airdropped to LXP point holders who participated in the Linea Voyage and Linea Park campaigns, which started in October 2023 and February 2024, respectively. However, the date for the snapshot determining eligibility or the airdrop itself has yet to be disclosed.

These initiatives have helped Linea rise quickly among the leading Layer 2 networks. According to DeFiLlama, the total value locked (TVL) in native DeFi applications on the network surged by 856% year-to-date, reaching $507 million from $53 million. L2beat also reported that Linea's network TVL grew by 435%, from $187 million to $1 billion during the same period.

Since launching its mainnet in August 2023, Linea has processed more than 230 million transactions, with around 223,600 of those occurring over the past 24 hours, according to GrowThePie.

The primary purpose of the LINEA token will be to enable governance, allowing token holders to actively engage in voting and decision-making processes on the network. In addition to this, LINEA will play a vital role in supporting payments and decentralized finance (DeFi) applications.

Linea users can connect their wallets to the MetaMask debit card, allowing them to make real-world payments using cryptocurrency through the MasterCard network. LINEA token holders will also enjoy benefits such as locking in transaction fees or receiving priority access to payment services.

According to Nicolas Liochon, the founder of Linea and a member of the Linea Association board, all these payment use cases create extra services on top of Linea, which will either be available to token holders or paid for in tokens.

The journey toward decentralization for Linea kicks off with the launch of the LINEA token and the formation of the Linea Association.

Linea's roadmap for governance is dynamic. The network's governance model will be multi-layered, featuring a Board of Directors, a General Assembly, a team of employees led by an Executive Director, and a token-powered governance system. But expect this model to be flexible. According to Linea's founder, Nicolas Liochon, the governance structure will evolve and be shaped by insights and feedback from the community.

"We're going to be releasing a lot of materials outlining our thoughts on governance, and we want the community's input," Liochon said. "This is not the final version. It will undergo multiple revisions driven by research and new ideas. The final model will be crafted from the feedback we gather."

Joseph Lubin, ConsenSys CEO, added that the governance approach takes a page from the Ethereum Foundation's playbook. The Ethereum Foundation has always supported the platform's growth without dominating its direction, and the Linea Association intends to do the same. 

"The Ethereum Foundation doesn't control Ethereum's evolution; it nurtures the ecosystem by supporting projects that bring value, hosting developer conferences, and providing some financial backing. The Linea Association will follow a similar approach, laying the groundwork for the ecosystem's growth." Linea's path to decentralization also includes a big step forward with decentralized sequencing—a critical feature for Layer 2 networks. This will be implemented gradually, starting with trusted participants and eventually transitioning to a fully decentralized proof-of-stake model.

In early October, the team released a proposal titled "Towards Linea's Decentralization" outlining the framework for overhauling the network's block validation, proposal, and finalization processes. This marked a key milestone on the road to a truly decentralized future.