Linea Launches 9.36 Billion Token Airdrop Event

Ethereum Layer 2 network Linea launched its native token LINEA on Wednesday with a token generation event distributing 9.36 billion tokens. Eligible addresses, identified through a July snapshot, now have 90 days to claim before unclaimed tokens revert to the ecosystem fund.

The distribution allocates 85% of supply to ecosystem uses, 10% to early adopters, and 15% to Consensys locked for five years. Around 750,000 wallets qualified after sybil filtering, with 9.3 billion tokens available for claim by early participants of Linea campaigns.

Linea’s design introduces a fee burn mechanism where 20% of ETH fees are destroyed and 80% used to repurchase LINEA. Developers said the dual burn structure creates deflationary pressure, positioning the token as “silver to ETH’s gold” within Ethereum’s broader infrastructure.

Exchanges Binance, HTX, Upbit, and CryptoCom confirmed trading support, with OKX and Binance Alpha running liquidity campaigns. The Linea Consortium, including Consensys, Eigen Labs, ENS, and SharpLink Gaming, will oversee a 54-billion-token fund to incentivize builders and Ethereum-aligned institutions.

SEC Chair Atkins Pushes Onchain Capital Raising Clarity

SEC Chair Paul Atkins told the OECD that most crypto tokens should fall outside securities definitions. He emphasized entrepreneurs must raise capital onchain “without endless legal uncertainty,” enabling trading platforms offering integrated services. Atkins introduced “Project Crypto,” aligning with Trump’s policy to modernize securities law and promote American digital innovation.

Atkins said prior administrations weaponized enforcement, forcing companies overseas and stifling development in the United States. He pledged minimal yet effective regulation to balance investor protection with innovation. Upcoming SEC-CFTC roundtables will explore onchain products, including decentralized perpetuals and DeFi, under new bipartisan legislation defining agency oversight boundaries.

Polygon Network Experiences Delay in Finality

Polygon reported that its proof-of-stake chain was facing 10-15 minute finality delays despite ongoing block production. Developers attributed the slowdown to a milestone issue and began rolling out a fix to validators. They assured users that transactions remain valid, though confirmations take longer, affecting exchanges and applications requiring higher assurance.

Finality guarantees irreversibility once checkpoints are secured on Ethereum, making it critical for trading, lending, and settlement services. Polygon’s team linked the delay to technical debt, addressed partly by its Heimdall v2 upgrade earlier this year. POL, the network’s native token, dropped 4% amid the issue and broader market weakness.

Bubblemaps Flags Massive MYX Airdrop Sybil Attack

Analytics firm Bubblemaps alleged that 100 wallets exploited the MYX airdrop, claiming $170 million worth of tokens. Investigators said wallets received identical BNB funding via OKX before claiming rewards simultaneously, suggesting coordinated manipulation. Bubblemaps called it possibly the largest Sybil attack in crypto history, raising community concern over fairness.

MYX denied wrongdoing, saying token rewards reflected trading contributions and anti-Sybil safeguards were implemented through its Cambrian campaign. The platform admitted that some address changes were allowed but insisted participation remained legitimate. Bubblemaps rejected the explanation, calling it vague, while MYX token prices fell from record highs this week.

Data of the Day

Top Polymarket trader “JustWakingUp” bet $15,000 that the Federal Reserve will slash rates by 50bps. The trader already holds $400 million total trading volume and $2 million profits, according to onchain market trackers. Current Polymarket pricing suggests a potential $226,000 payout if the Fed opts for a larger-than-expected cut.

Most investors still expect a 25bps reduction, with CME’s FedWatch assigning it 91% probability. However, odds of 50bps rose after weak labor data spurred aggressive easing calls from BlackRock and Standard Chartered. Traders now await inflation prints later this week, which could further tilt expectations toward sharper monetary adjustments.

More Breaking News

• Japan's Metaplanet raised $1.4 billion via a 385 million-share offering to expand its Bitcoin treasury, now holding over 20,000 BTC.
• Kraken expanded tokenized stock trading to EU investors, offering xStocks with 24/5 access to US equities via Solana-based SPL tokens.
• Binance partnered with Franklin Templeton to co-develop tokenized security products, combining trading infrastructure with compliant asset issuance capabilities at a global scale.
• Paxos proposed issuing Hyperliquid’s USDH stablecoin with PayPal and Venmo integration, offering $20 million in incentives and a capped revenue-sharing structure.
• Ethereum’s validator exit queue surged after Kiln began removing stakers as a precaution following SwissBorg’s Solana exploit; exits may take 42 days.
• Eric Trump’s board seat at WLFI treasury firm Alt5 Sigma was downgraded to observer following Nasdaq compliance discussions tied to token holdings.
• Belarus President Lukashenko urged banks to expand crypto payments, citing $3 billion in forecasted exchange volume amid tightening Western sanctions.

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