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Linea Token Buybacks and Burns: Is It Becoming a Perpetual Buyer of Its Own Token?

Linea Token Buybacks and Burns: Is It Becoming a Perpetual Buyer of Its Own Token?

Hey crypto enthusiasts, if you've been keeping an eye on Ethereum's Layer 2 solutions, you might have caught wind of some exciting developments from Linea. As highlighted in a recent tweet from BSCNews, Linea is rolling out buybacks and burns for its $LINEA token, potentially turning the project into a 'perpetual buyer' of its own asset. But what does that really mean? Let's break it down in simple terms, especially for those dabbling in meme tokens on blockchain networks like this.

Linea Blockchain Logo

First off, Linea is an Ethereum Layer 2 (L2) scaling solution that uses zero-knowledge proofs to make transactions faster and cheaper—up to 15 times less expensive than on Ethereum's mainnet. This makes it a hot spot for DeFi apps and, yes, even meme tokens looking for low-fee environments to thrive.

How the Buyback and Burn Mechanism Works

At the heart of this update is Linea's gas burn mechanism. Here's the scoop: 20% of the network's net gas fees (those are the fees users pay for transactions) go toward burning ETH, while a whopping 80% is used to buy back and burn $LINEA tokens right on the market. Burning tokens means they're removed from circulation forever, which can help increase scarcity and potentially drive up value over time.

This system kicked off in early November 2025, and it's tied directly to network activity—the more people use Linea, the more fees are generated, and the more $LINEA gets bought back and burned. It's like a self-sustaining cycle, or what they call a 'flywheel effect,' where growth fuels more growth.

Adding to that, Linea is integrating with Lido's V3 to enable native yield generation. This means ETH bridged to Linea can earn yields, which are then distributed to liquidity providers and DeFi protocols. Instead of relying on $LINEA incentives, users might soon get rewards in ETH or stablecoins like mUSD. This feature is slated to launch between October and December 2025.

The Benefits for the Ecosystem and Meme Tokens

Why does this matter? For starters, it creates deflationary tokenomics for $LINEA. With a current circulating supply of about 15.5 billion tokens and no insider unlocks, these burns could significantly reduce supply as the network grows. That scarcity might attract more investors, including institutions—think big players like SharpLink Gaming planning to deploy $200 million in ETH on Linea.

For meme token creators and traders, Linea's lower fees and Ethereum compatibility make it an ideal playground. Increased network activity from these burns and yields could mean more liquidity and buzz, helping meme projects gain traction without the high costs of mainnet. Plus, as institutional capital flows in (maybe even integrations with traditional systems like SWIFT), the overall TVL (total value locked) rises, creating a vibrant ecosystem where memes can flourish alongside serious DeFi.

Looking Ahead: Future Plans and What to Watch

Linea isn't stopping here. The gas burn is already live, and the native yield feature is on the horizon. They're focusing on community incentives rather than team or investor allocations, which is a refreshing take in the crypto space. Keep an eye on upcoming events, like their zkEVM upgrade or podcasts discussing these changes.

If you're building or trading meme tokens, Linea's moves could supercharge your plays by boosting platform adoption. For more details, check out the full article on BSC News.

What do you think—will this make $LINEA a must-hold? Drop your thoughts in the comments below!

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