Blast batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense). Bridge depositors deposit ETH or stablecoins to Blast and receive a yield from ETH staking or T-bill strategies.

Blast is an L2 smart contract platform for decentralized applications on Ethereum. Blast has an inherent yield generation mechanism, coming from ETH staking and RWA protocols. Blast was founded by Pacman and launched in 2023.

Blast team and investors currently own and govern the protocol. Blast's investors include Paradigm, Standard Crypto, Santiago, etc.

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Blast

# Blast Earnings Methodology

## 1. Overview

Blast earnings represents the daily net profit of the Blast Layer 2 blockchain, calculated as total revenue minus total expenses. This metric measures the protocol's financial performance by comparing the gas fees collected from users (revenue) against the costs of operating the network, including L1 settlement fees and gas reward payouts (expenses). The calculation follows standard accounting principles where earnings = revenue - expenses.

## 2. Data sources

The calculation utilizes several key data sources:

- **Blast blockchain transaction data**: Complete transaction records from the Blast network including gas usage, gas prices, and transaction metadata
- **Ethereum blockchain transaction data**: Transaction records from Ethereum mainnet, specifically transactions made by Blast's sequencer address for L1 settlements
- **Parsed Blast smart contract function calls**: Decoded function calls for gas claim operations including `claimMaxGas`, `claimAllGas`, `claimGasAtMinClaimRate`, and `claimGas` functions
- **End-of-day token price feeds**: Daily USD exchange rates for ETH and other tokens used in the calculations
- **Token metadata**: Information about token addresses, symbols, and decimal places for proper unit conversion

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate total daily revenue from gas fees collected on Blast network
- **Logic**: Extract all transactions from Blast blockchain and calculate total gas fees paid by users. This includes both L2 execution fees (standard gas fees for transaction processing) and L1 data availability fees (costs for posting transaction data to Ethereum). Gas fees are calculated by multiplying `gas_used` by `effective_gas_price` for L2 fees, and multiplying `l1_gas_used` by `l1_gas_price` and `l1_fee_scalar` for L1 fees, then dividing by 10^18 to convert from wei to ETH units
- **Key fields**: `gas_used`, `effective_gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar` from transaction records

### Component B: Cost of revenue calculation  
- **Purpose**: Calculate daily costs for settling Blast transactions on Ethereum L1
- **Logic**: Identify Ethereum transactions made by Blast's sequencer address (0x415c8893d514f9bc5211d36eeda4183226b84aa7) which represent L1 settlement operations. Calculate total gas costs including both regular gas fees and blob gas fees for data availability. Gas costs are computed as `gas_used_amount` multiplied by `gas_price` plus `blob_gas_used_amount` multiplied by `blob_gas_price`, then divided by 10^18 to convert to ETH units
- **Key fields**: `receipt_effective_gas_price`, `receipt_gas_used`, `receipt_blob_gas_price`, `receipt_blob_gas_used` from Ethereum transactions

### Component C: Operating expenses calculation
- **Purpose**: Calculate daily gas reward payouts to Blast users
- **Logic**: Track gas claim function calls on Blast network where users claim their accumulated gas rewards. Parse specific function calls (`claimMaxGas`, `claimAllGas`, `claimGasAtMinClaimRate`, `claimGas`) and extract the `returnedGas` output parameter which represents the amount of gas rewards paid out to users. Convert amounts from wei to ETH by dividing by 10^18
- **Key fields**: `returnedGas` output from gas claim function calls, `recipient` addresses receiving the rewards

### Component D: Token incentives calculation
- **Purpose**: Calculate daily token-based incentive payments
- **Logic**: Blast currently has no active token incentive programs, so this component returns zero for all time periods
- **Key fields**: Set to constant zero value

### Final aggregation
- **Combining components**: Revenue uses gas fees from Component A. Total expenses combines cost of revenue from Component B, operating expenses from Component C, and token incentives from Component D (zero)
- **Currency conversion**: All ETH amounts are converted to USD using end-of-day exchange rates. Conversion uses Ethereum price feeds since all underlying assets are ETH or WETH
- **Time aggregation**: All transaction-level data is aggregated to daily totals using day-truncated timestamps. Missing days are filled with zeros using the fill_zeros strategy
- **Final calculation**: Daily earnings equals daily revenue minus daily total expenses (cost of revenue + operating expenses + token incentives)

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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