What is Linea(LINEA) currency? Is it a good investment? LINEA's investment value and future prospects

Summary box (short facts)

• Stock Code: LINEA
• Chain: Ethereum (Layer 2)
• Contract address: 0x1789e0043623282d5dcc7f213d703c6d8bafbb04
• Circulation supply: approximately 15.48 billion LINEA.
• Maximum supply: 72.01 billion LINEA.
• Main example: Ethereum Layer 2 scaling solution.
• Current market value: approximately US$382 million.
• Availability on Phemex: Yes (spot, futures, LINEA listing feast)

What is Linea?

Linea is an Ethereum layer 2 expansion solution launched by blockchain technology company Consensys, which is also a developer of well-known products such as MetaMask and Infura. The goal is to solve the problem of Ethereum network congestion, improve transaction processing speed and reduce fees, while ensuring the security of the main network. As zkEVM Rollup, Linea processes transactions in batches off-chain and submits zero-knowledge proofs to the Ethereum main network, greatly reducing on-chain data storage, thereby achieving efficient and low-cost operation.

A key advantage is its high compatibility with EVM, which enables existing Ethereum smart contracts and decentralized applications (dApps) to be directly deployed to Linea without modifying code, greatly promoting the migration and ecological expansion of projects.

How many LINEAs are there?

The total supply of Linea tokens is 72,009,990,000 LINEAs. Its token design idea is unique, focusing on long-term development of the ecosystem and collaboration with the Ethereum community.

It is worth noting that the only Gas payment token in the Linea network is ETH, which is not used for transaction fees and currently does not have on-chain governance functions. This allocation mechanism completely excludes the share of venture capital and internal teams, and the specific structure is as follows:

85% of the investment in ecosystem: mainly used to promote ecological prosperity and real user incentives.

• 75% is allocated to the Ecosystem Fund: managed by the Linea Alliance, and the funds will be used for long-term development, project funding and public product support, and will be released gradually over ten years.
• 10% Rewards Early Contributors: Including 9% airdrops for active users, and 1% rewards for strategic developers, which have been fully unlocked in Token Generation Events (TGE). The short investment space is determined based on on-chain behavior indicators such as LXP (Linea Voyage XP).

15% belongs to Consensys Finance Department: This part has a five-year lock-up period, reflecting the project party's firm commitment to long-term development.

In addition, Linea introduced a dual destruction mechanism, using the ETH transaction fees collected by the network to repurchase and destroy LINEA tokens, forming a deflation model that is positively related to on-chain activities.

What can LINEA do?

The core role of LINEA tokens is to drive ecological incentives and development, rather than bear Gas fees - this role is still performed by ETH.

Its main uses include:

• Ecological construction and incentives: A large number of tokens are reserved in ecological funds and can be used in developer subsidies, user rewards and liquidity incentive plans. Projects such as "Linea Ignition" aim to enhance the decentralization and activity of the platform.
• Economic Coordination Tool: By large-scale airdrops to early participants, LINEA is committed to distributing tokens to community members who truly use the network, strengthening the interests of users and the ecosystem.
• Deflation value support: With the help of transaction revenue-driven repurchase and destruction mechanism, as network usage increases, more LINEAs will be permanently removed, potentially increasing the scarcity of tokens.

Linea and Ethereum

Although Linea serves the Ethereum ecosystem, there are significant differences in technical architecture, performance and core functions.

The technology behind Linea

Linea's technology core is a zero-knowledge Ethereum virtual machine (zkEVM), which integrates zk-Rollup capacity expansion capabilities and complete EVM equivalence.

• zk-Rollups: As the underlying expansion solution, it allows transactions to be executed off-chain, and only compressed data and validity proofs are submitted to the Ethereum main chain, which greatly improves efficiency while ensuring security.
• EVM Equivalence: This feature is extremely developer-friendly, meaning that all smart contracts, dApps or development tools built on Ethereum can be seamlessly moved to Linea without rewriting code.

The project was developed by Consensys, an important promoter of the Ethereum ecosystem. Natural is deeply integrated with mainstream tools such as MetaMask and Infura, providing a solid foundation for its popularity.

Team and Origin

Linea is incubated and developed by Consensys, a leading blockchain software company founded by Ethereum co-founder Joseph Lubin. The project has undergone long-term research and development and has been officially launched on the main network in July 2023. The Token Generation Event (TGE) of LINEA Tokens was held on September 10, 2025.

Its token economics design is particularly prominent: completely eliminate venture capital and internal reservations, and 85% of the total amount is used for ecological development and community incentives, demonstrating its decentralized concept.

Important news and events

• Token generation events and airdrops (September 10, 2025): Linea ushered in a key node, issuing more than 9.36 billion LINEA tokens to early users and community members. The receipt window period is 90 days.
• Listing on the exchange: After TGE, LINEA quickly logged into mainstream trading platforms such as Phemex to open spot and futures trading to improve market liquidity.
• The network brief suspension event (September 2025): On the eve of airdrop, Linea encountered a block production interruption of more than 40 minutes. The team quickly locates and fixes the sorter failure and the system has been restored to normal operation.

Is LINEA a good investment?

To evaluate LINEA's investment potential, we need to comprehensively consider many factors and personal risk preferences.

Positive factors:

• Backed by a strong team: Consensys' deep participation gives the project a high level of credibility and technical strength.
• Frontier technology route: As a zkEVM solution, Linea is at the forefront of Ethereum expansion technology.
• Pangda Ecological Fund: Using most of the tokens for ecological support is expected to accelerate application implementation and user growth.
• Deflationary economic model: The repurchase and destruction mechanism may lead to supply contraction, and if the utilization rate increases, it may promote value accumulation.

Potential risks:

• Fierce competitive environment: The Layer-2 track has multiple mature competitors, and the market competition is in full swing.
• Token usage is limited: not participating in Gas payments may weaken its native demand scenario.
• High price volatility: The overall crypto market fluctuates violently and is greatly affected by sentiment.
• Centralized hidden dangers: Components such as sequencers may have centralized risks, and recent downtime events have exposed relevant vulnerabilities.

Conclusion: Linea has shown strong competitiveness in the Layer-2 field with its solid technical background, clear ecological vision and innovative token allocation model. However, investors should carefully evaluate their functional positioning and industry competitive landscape. It is recommended to pay close attention to LINEA's real-time market conditions before making decisions.

Conclusion

Linea has created a new Layer-2 token economic paradigm, focusing on ecological sustainability rather than short-term speculation. By allocating the vast majority of tokens to the community and establishing a deflation mechanism pegged to network activities, Linea is committed to building a healthy, self-driven ecosystem that feeds back to the entire Ethereum network. For more information on Layer-2 innovation, visit Phemex Academy.

FAQ

What is the main purpose of Linea network?

Linea's main purpose is to scale Ethereum by providing Layer-2 solutions, which provide faster transaction speeds and lower fees, making decentralized applications more efficient and accessible.

What is the purpose of LINEA tokens?

LINEA tokens are mainly used to inspire the growth of the Linea ecosystem by rewarding users, developers and liquidity providers. It is also part of the deflation mechanism, which uses network fees to buy and destroy tokens.

Linea's security

Ethereum main network. zk-Rollup, which processes transactions off-chain but submits proof of results to Ethereum, thus ensuring transactions are secure as non-forgery.

Who is behind the Linea project?

Linea is developed by Consensys and is a well-known blockchain software company known for creating Ethereum infrastructure such as MetaMask and Infura.

How is LINEA different from other Layer-2 tokens?

Unlike many Layer-2 tokens, LINEA is not used to pay for network Gas fees (Gas fees are paid in ETH). Its value is closely related to the review mechanism of ecosystem mechanism incentives and deflation.

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