Linea is about to have its TGE, what is the LXP point threshold and a reasonable valuation?

Original Article Title: "Linea Tokenomics Revealed, What Is the Fair Valuation of LXP Points?"

Original Article Author: Asher, Odaily Planet Daily

As Ethereum celebrates its 10th anniversary, ConsenSys-owned Ethereum Layer 2 network Linea officially unveiled its tokenomics model last night, sparking widespread community attention. Although the TGE originally scheduled for Q1 2025 has been delayed, this announcement is seen as a significant signal leading up to the TGE.

Linea is an L2 network built on Ethereum, launched by Ethereum infrastructure giant ConsenSys. Since its mainnet launch in 2023, Linea has rapidly attracted a large number of users through deep integration with MetaMask and ecosystem incentives. Linea had previously pledged to airdrop tokens to early users through the LXP (Linea Experience Points) point system, and now, with the tokenomics model revealed, this process is gradually moving towards fulfillment.

Who Pays Gas Fees? ETH, Not LINEA

On the Linea network, ETH is the sole Gas token used to pay transaction fees. LINEA is not a Gas token and does not have on-chain governance rights. Currently, the Linea protocol does not have a DAO, and governance is operated by ConsenSys. Additionally, LINEA tokens have not been allocated to any employees or investors.

Within the L2 fee structure, a portion of ETH and LINEA tokens will be burned. The core use of LINEA tokens is to incentivize ecosystem development. In L2 network revenue, 20% of Gas fees will be burned after deducting L1 costs, reducing the ETH supply and enhancing its currency premium. The remaining 80% of Gas fees will be used to burn LINEA tokens to enhance their scarcity and value support.

Furthermore, LINEA will be used to fund developers, users, liquidity providers, and Ethereum public goods. This is a token obtained through participation rather than capital, emphasizing the concept of "usage equals participation, participation equals allocation."

9% of Total Supply Will Be Airdropped with No Vesting Period

According to official documentation, the total supply of Linea tokens is 72,009,990,000, equivalent to 1,000 times the initial circulation of ETH. The distribution method aligns with Ethereum's genesis distribution to indicate its long-term alignment with the broader ecosystem, with 85% of the supply dedicated to the ecosystem and the remaining 15% allocated to the ConsenSys treasury. The token's detailed distribution breakdown is as follows:

· Early Contributors: 10% of the total token supply. Among this, early users will receive 9% of the total token supply, and will be airdropped at TGE with no lock-up period. The allocated group is users receiving LXP. An additional 1% of the total token supply will be reserved for strategic ecosystem builders within the Linea ecosystem and will unlock fully at TGE;

· Ecosystem: 75% of the total token supply. This portion of tokens is allocated to the ecosystem fund (to be established in a US-based non-stock entity), managed by the Linea Alliance (a council composed of Ethereum native developers), with members including ENS Labs, Eigen Labs, SharpLink, Status, and Consensys;

· Treasury: 15% of the total token supply. This portion of tokens will be locked for five years and remain non-transferable during the lock-up period, but may be deployed within the ecosystem, e.g., as liquidity or staking funds, to support the protocol's health and integrity.

Linea Tokenomics

Additionally, approximately 22% of the token supply (15.8 billion LINEA tokens) will be in circulation at TGE, including airdrops to early contributors, ecosystem activation plans, and liquidity provisioning.

Official Response: Airdropped Tokens at TGE Snapshot Completed

Declan Fox, Project Lead of Linea, responded to a user's inquiry regarding the LINEA tokenomics on the X platform, stating that the snapshot for the airdrop portion at TGE has been completed, with all witching attack filters already in place. Additionally, this airdrop does not involve CEX listings, InfoFi, or any asset dilution, and the funds will not flow to the team or investors.

Moreover, it was mentioned that users participating in the Linea journey and receiving LXP will receive the 9% reward in airdropped tokens, but there is a minimum LXP point threshold requirement, with specific criteria yet to be disclosed.

Finally, Declan Fox expressed that the token TGE is progressing soon, but as of now, no information regarding token airdrop queries, token claims, etc., has been released. Users are advised to be cautious and protect their assets from scams.

Linea Airdrop Projection: LXP Threshold may be 1500, with each point potentially valued at a maximum of $0.3

According to a record of an AMA session reported by Linea project ambassador zETHerka.eth (@zETHerka) as early as March this year, if a wallet has less than 1500 LXP points but rich on-chain metrics (such as transaction volume, wallet age, transaction frequency), a conclusion can be drawn: LXP exceeding 1500 points is a standard for receiving a token airdrop.

According to on-chain data, there are currently around 495,000 addresses with over 1500 LXP points, totaling approximately 1.496 billion LXP points. Considering that some addresses below 1500 points are still highly active in the ecosystem and may also be included in the airdrop, we therefore tentatively assume that in the end, there will be over 500,000 addresses meeting the airdrop criteria, totaling approximately 1.5 billion LXP points.

According to the published tokenomics, Linea plans to allocate 6.48 billion tokens for airdrops and user incentives. Based on this calculation, approximately 4.32 LINEA tokens can be exchanged for every 1 LXP point (6.48 billion ÷ 1.5 billion = 4.32). This exchange rate does not yet include any subsequent multipliers or weight adjustments, and is only a basic estimate.

Furthermore, Linea's initial circulating supply at TGE is 15.8 billion tokens. Referring to the initial circulating market cap of other Ethereum Layer 2 projects during the TGE phase, which is generally between 6 billion and 10 billion USD, the reasonable initial price range for the LINEA token is estimated to be approximately $0.035 to $0.06. Therefore, the value of 1 LINEA token corresponding to 1 LXP point will be between $0.15 and $0.3.

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