Crypto Lady 💢

Through the power of DeFi, and building blocks like Staking, the Linea ecosystem will be able to sustainably offer the best risk-adjusted return on your capital. Native Yield goes live this year on Linea Mainnet with additional real yield sources to be added to it's economic distribution capacity. This is why public ETH treasury companies like @sharplink are choosing to commit millions of dollars in capital over a multi-year timeline towards the Linea ecosystem. This capital will be used to power the networks economy, where every single transaction burns ETH and LINEA 🔥

There are (at least) two approaches to an Ecosystem/Community Fund allocation. The first is usually where governance, typically a DAO, votes on an initiative to mint or unlock tokens and distribute as per the proposal. This gives the DAO flexibility to allocate token incentives at any point, if approved, but as an investor you can’t reliably model the max circulating supply and you have to closely monitor the governance. In the case for Arbitrum DAO Treasury and Optimism Seed/Partner/Ecosystem Funds they unlock the TBD tokens and for ZK Token Assembly they mint new tokens, within a max allocation tokenomist.ai/arbitrum tokenomist.ai/optimism tokenomist.ai/zksync The other approach, taken by Linea, is tokens are made predictably available to the Linea Consortium over a ten year period as per an explicit vesting schedule, with the strict mandate to grow the Linea technology, network, and open source software of Ethereum. You know exactly how many tokens could be made available at any point in time, including for example 6 years from TGE. The downside is that unlocks can also create FUD. Token investors typically view unlocks in the context of team/VC allocations, which often get sold immediately with no public disclosure and, on average, account for 50% of total supply. The cash raised from these sales is almost never reinvested into the ecosystem. But the Linea tokenomics are unique with no insider allocation, and holders may need to update their mental models around supply overhang to not associate unlocks directly with sell pressure, as the Ecosystem Fund is the only entity receiving any of the remaining supply. The rate of unlocks for the LC naturally start off higher and scale down year by year, over a decade, as bootstrapping the ecosystem turns into a self-sustaining economy. The LC and its Advisory Committees then provide comms and reports on how those tokens are being leveraged, for example 4% was approved and allocated to LXP-L for the retroactive airdrop, and ~1.3% portion was allocated to Linea Ignition. Now TGE is over, we will dedicate resources to create educational content around this structure, raise awareness of the benefits vs traditional models, and support the LC with communication on future growth initiatives from the Eco Fund.

This is a joke. But they should totally do it.

SomETHing big just dropped: 85% for ecosystem, MASSIVE fund managed by trusted Ethereum institusions, ETH-burn with every Linea transaction... Second blog post coming later today which drives down more into the specifics of the token distribution. Will be running through all the questions after.