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

Base is an Ethereum Layer 2 (L2) offering a secure, low-cost, builder-friendly way for anyone, anywhere, to build onchain.

Coinbase team owns and governs the protocol. Coinbase is a public company and its investors include Andreessen Horowitz, Vanguard Group, ARK Investment Management, etc.

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Blockchains (L2)

Base

# Base Token incentives Methodology

## 1. Overview

The Base token incentives metric measures the USD value of token-based rewards distributed to users on the Base blockchain. This metric is currently set to zero, as Base does not distribute token incentives to users. The calculation establishes a consistent framework for potential future token incentive programs while maintaining data continuity and schema consistency with other blockchain metrics.

## 2. Data sources

- **Base transaction records**: Complete transaction history from the Base blockchain including gas usage, fees, and transaction metadata
- **End-of-day token price feeds**: ETH/USD price data used for currency conversion in the underlying fee structure
- **Token metadata**: Ethereum WETH contract information (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) used as the reference token for pricing

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Establish the base data structure and temporal framework for the incentives metric
- **Logic**: Extract Base blockchain transaction records and map them to use Ethereum's WETH token address for consistent pricing across the platform. Cast transaction fields including timestamps, addresses, gas usage metrics (both L1 and L2 components), and gas prices to appropriate data types.
- **Key fields**: `block_timestamp`, `transaction_hash`, `gas_used`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`, `gas_price`

### Component B: Gas fee aggregation  
- **Purpose**: Calculate daily gas fee totals that provide the temporal structure for incentives tracking
- **Logic**: Aggregate Base transactions to daily level, calculating both L2 gas fees (gas used × gas price) and L1 gas fees (L1 gas used × L1 gas price × L1 fee scalar) in ETH units. This creates the daily timestamp framework that the incentives metric inherits.
- **Key fields**: Daily `timestamp`, `l2_gas_fee`, `l1_gas_fee`, `token_address`, `chain`

### Component C: Fee currency conversion
- **Purpose**: Convert gas fees to USD to establish the currency framework for incentives
- **Logic**: Apply USD conversion using end-of-day ETH price feeds and convert amounts to standard decimal precision. Recast the chain identifier from 'ethereum' (used for pricing) back to 'base' for proper chain attribution.
- **Key fields**: `fees` (in USD), `timestamp_grain` (set to 'day'), `chain_id` (set to 'base')

### Final aggregation
- **Combining components**: The token incentives metric uses the temporal and structural framework from the gas fee calculation but sets the `token_incentives` field to zero for all records
- **Currency conversion**: No additional currency conversion is needed since incentives are set to zero
- **Time aggregation**: Maintains daily grain boundaries established by the underlying fee calculation 
- **Final calculation**: Token incentives equals zero for all time periods, with the `finalize_metric_token_incentives` macro ensuring schema consistency, forward-filling any temporal gaps with zeros, and applying chain availability filters to include only active Base blockchain periods

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

Value of native tokens distributed as incentives.

Base

Token incentives

Token incentives

Competitive landscape

Chain breakdown