In August 2025, Ethereum Layer 2, led by Linea under Declan Fox, announced significant protocol upgrades that could alter the rules of the game in the blockchain industry.
Ethereum Layer 2 Protocol Upgrades
The tech summit in San Francisco showcased advancements in Layer 2 technology. Updates, including ETH-native staking and burn mechanisms, enhance the network's scalability and decentralization, attracting investor interest.
Economic Impact on Cryptocurrency Market
The protocol upgrades also affect the financial sector, aiming to attract participants from DeFi and TradFi. 85% of Linea's token supply is now allocated for ecosystem grants and developer incentives, potentially increasing user engagement.
Future Prospects and Expectations
According to Declan Fox, "Linea Mainnet will burn ETH with every transaction and use the LINEA token to support users and builders." This highlights changes in capital allocation and signals sustainable growth in ecosystem participants.
The protocol upgrades of Ethereum Layer 2, particularly the staking and ETH burn mechanisms, may reshape the dynamics within the cryptocurrency ecosystem, fostering growth and resilience.
