jakiro
The “famous” Ethereum layer 2 expansion Linea has finally confirmed that it will issue a token.
Based on the latest information released by the team, I have excerpted some of the more critical information related to retail investors:
– Total supply of tokens is approximately 72 billion
– 9% of the supply will be airdropped to users…
In Linea system, the token has no function defined for the time being, neither as fuel (the fuel is still Ethereum), nor has the governance function.
According to token economics, after deducting costs, 20% of the handling fees (Ethereum) received by Linea will be destroyed (used to Ethereum’s deflation), and the remaining 80% will be used to repurchase and destroy LINEA tokens.
From its token economics, we can see that the launch of the Linea system has a direct contribution to the Ethereum currency price.
Although its token LINEA has no practical function by definition, it is similar to the “stock” of the system in terms of empowerment.Most of the system’s profits are allocated to token holders, but this allocation is achieved through repurchase and destruction.
This is much better than other tokens that only have governance functions but no economic empowerment.
From the issuance of tokens, we can also estimate its fair currency price.
Among the Ethereum layer 2 expansion of the now issued tokens, the two strongest ecosystems are Arb and OP, whose full circulation market value (FDV) are US$4.2 billion and US$3.1 billion respectively.
If we measure this criterion, we assume that the price of LINEA can be as good as the two, then the unit price of LINEA is US$0.043 ~ US$0.058.
But according to the data from https://l2beat.com/scaling/summary, we use the TVS in the ecosystem (Total Value Secured) to measure, Linea’s TVS is only US$514 million, which is far from Arb’s US$17.6 billion and OP’s US$3.7 billion.
It is only closest to Starknet’s $518 million.
And what is Starknet’s full circulation market value (FDV)?
Only $1.3 billion.
So if we compare it from the perspective of ecological construction, LINEA’s full circulation market value should be closer to Starknet, which is more reasonable.
If calculated at US$1.3 billion, then the price of LINEA is only US$0.018.
Of course, LINEA has a relatively obvious advantage compared to Arb, OP and Stark, which is that its tokens are economically empowered.But it is hard to say how much this advantage can be reflected in the currency price.I won’t consider this factor for the time being.
Therefore, based on these data, after LINEA went online, the price is more reasonable at around US$0.018, and the upper limit is at most US$0.058.If it exceeds $0.058, the moisture will be quite good.
The above speculations and estimates are only calculated based on theory and data. In fact, the most important thing about the development of the project and the trend of the currency price depends on the construction and promotion of the project – this is the fundamental and the key.
However, I think this most fundamental and critical factor is very disappointing in the performance of Linea project.
Linea has been operating for a long time since it has been testing network to main network and now.
What have we seen over such a long time?
BASE, which is behind it, is in full swing, at least it has AI + Crypto. It doesn’t know what it is doing yet, and only sees the recent vigorous publicity of its progress in ZK on social media.
But what does this progress specifically reflect?What benefits the ecology?What projects have been helped?
I can’t see any of them.
Let’s talk about posting tokens. This incident happened last year or the previous year, and the project party kept hinting and inducing on social media, and it was not until now.
What can this situation bring to the ecology now?
I have an ominous premonition: Will this token be the last highlight of the project?
I hope my premonition is wrong.
