Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

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Arbitrum One

# Arbitrum One Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) is measured as the daily revenue generated per active user on Arbitrum One. The monetization efficiency of the active user base is reflected by this metric on a daily basis. Total daily revenue is divided by the number of active users (daily) to perform this calculation. Greater economic activity or higher transaction fees generated per individual user within a fixed 24-hour window are indicated by a higher ARPU.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Determine the total daily revenue generated by the protocol
- **Logic**: Daily revenue is set equal to total fees, which are aggregated from three distinct sources. First, L2 gas fees are calculated by multiplying transaction gas used by the effective gas price for all transactions. Second, Timeboost fees are extracted from `AuctionResolved` events emitted by `ExpressLaneAuction` contracts. Third, Arbitrum Expansion Program (AEP) licence fees are calculated as a percentage of net fee-account inflows on participating chains, such as Robinhood Chain, by tracking fee inflows and refund outflows. All fee components are normalized by decimal precision, converted to USD using end-of-day price feeds, and summed to determine total daily revenue.
- **Key fields**: `gas_used_amount`, `gas_price`, `timeboost_fee`, `fee_inflow`, `refund_outflow`, `price_usd`

### Component B: Daily active user tracking

- **Purpose**: Count the number of unique active users on a daily basis
- **Logic**: active users (daily) are identified by extracting unique transaction senders from transaction records. The unique addresses are aggregated daily to represent the total count of active users (daily) for each 24-hour period.
- **Key fields**: `from_address`, `block_timestamp`

### Component C: Average revenue per user calculation

- **Purpose**: Calculate the final average revenue generated per user
- **Logic**: The total daily revenue is divided by the active users (daily) count for each corresponding day. If either value is missing or if there are no active users, the resulting average revenue per user is set to zero.
- **Key fields**: `revenue`, `user_dau`, `arpu`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Arbitrum OneARB

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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