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Blockchains (L1)

Berachain

# Berachain Revenue Methodology

## 1. Overview

Berachain revenue represents the net protocol revenue generated from transaction fees on the Berachain blockchain. This metric calculates the total fees paid by users minus the portion distributed to validators (supply-side fees), representing the protocol's retained revenue. The calculation follows the EIP-1559 fee structure where total transaction fees are split between base fees (burned/retained by protocol) and priority fees (paid to validators).

## 2. Data sources

The calculation uses the following raw data sources:

- **Berachain block data**: Block records containing base fee per gas information and block timestamps
- **Berachain transaction records**: Individual transaction data including gas usage, gas prices, priority fees, sender and recipient addresses
- **End-of-day token price feeds**: USD price data for the BERA token used for currency conversion
- **Token metadata**: BERA token information including the standard token address and symbol

## 3. Step-by-step calculation

### Component A: Block and transaction data processing

- **Purpose**: Extract and combine block-level fee information with transaction-level gas usage data
- **Logic**: Block data provides the `base_fee_per_gas` for each block, which represents the minimum fee required for transaction inclusion. Transaction records contain `gas_used`, `gas_price`, and `max_priority_fee_per_gas` fields. These datasets are joined on block number to combine fee structure information with actual gas consumption data for each transaction.
- **Key fields**: `base_fee_per_gas` from blocks, `gas_used`, `gas_price`, and `max_priority_fee_per_gas` from transactions, along with transaction identifiers and timestamps

### Component B: Gas fee calculations

- **Purpose**: Calculate the different components of transaction fees using EIP-1559 fee structure
- **Logic**: For each transaction, three fee components are calculated by multiplying gas usage by the respective fee rates and converting from wei to BERA tokens. Total fees equal `gas_used` multiplied by `gas_price` divided by 1e18. Priority fees (validator rewards) equal `max_priority_fee_per_gas` multiplied by `gas_used` divided by 1e18. Base fees (protocol portion) equal `base_fee_per_gas` multiplied by `gas_used` divided by 1e18. All amounts are aggregated to daily totals.
- **Key fields**: `fee_amount` (total fees), `priority_fee_amount` (validator portion), `base_fee_amount` (protocol portion)

### Component C: Protocol fees (total fees)

- **Purpose**: Calculate total fees paid by users, representing gross protocol revenue
- **Logic**: Daily transaction fee amounts are converted from BERA tokens to USD using end-of-day price feeds. The conversion applies the daily closing price of BERA to each day's aggregated fee amounts. These USD amounts are then processed through data validation and gap-filling procedures to ensure a complete time series.
- **Key fields**: `fees` in USD representing total daily protocol fees

### Component D: Supply-side fees (validator rewards)

- **Purpose**: Calculate the portion of fees distributed to validators
- **Logic**: For EIP-1559 transactions, the priority fee amount represents validator rewards. For legacy transactions where priority fee is null, validator rewards are calculated as the difference between total fees and base fees. These amounts are converted to USD using the same price feed methodology as protocol fees. The values are then processed through validation procedures.
- **Key fields**: `fees_supply_side` in USD representing daily validator rewards

### Final aggregation

- **Combining components**: Protocol revenue is calculated by taking total fees (Component C) and subtracting supply-side fees (Component D). This is achieved by unioning the positive fee amounts from protocol fees with the negative fee amounts from supply-side fees.
- **Currency conversion**: All BERA token amounts are converted to USD using end-of-day BERA price feeds, ensuring consistent valuation timing across all fee components
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation, with each day representing the sum of all transaction fees for that 24-hour period
- **Final calculation**: Net revenue equals total transaction fees minus validator rewards, representing the protocol's retained revenue from gas fees. Positive values indicate net revenue to the protocol, while negative values would indicate that validator rewards exceed total fees (which should not occur under normal EIP-1559 mechanics).

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

BerachainBERA

Revenue

Revenue

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