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Blockchains (L2)

Boba Network

# Boba Network Earnings Methodology

## 1. Overview

The Boba Network earnings metric measures the protocol's daily profit by calculating total revenue minus total expenses. Revenue represents gas fees collected from users for transaction processing, while expenses include L1 settlement costs for data availability and any token incentive programs. This metric answers the business question: "How much profit does Boba Network generate daily after accounting for operational costs?"

The calculation follows the standard formula: Earnings = Revenue - Expenses, where both components are converted to USD and aggregated daily.

## 2. Data sources

The earnings calculation relies on the following raw data sources:

- **Boba Network transaction records**: Complete transaction data from the Boba Network blockchain including gas usage, gas prices, and L1 data availability fee components (`gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`)
- **Ethereum transaction records**: Transaction data from Ethereum mainnet, specifically transactions sent to Boba Network's sequencer addresses for L1 settlement operations
- **End-of-day token price feeds**: USD price data for ETH and wrapped ETH tokens used for currency conversion
- **Token metadata**: Decimal precision and symbol information for proper token amount calculations

## 3. Step-by-step calculation

### Component A: Revenue calculation (total fees collected)

- **Purpose**: Calculates total fees collected from users for transaction processing on Boba Network
- **Logic**: Extracts all Boba Network transactions and calculates the total gas fees paid by users. Each transaction has two fee components: L2 execution fees and L1 data availability fees. The L2 component uses standard gas calculation (`gas_used` × `gas_price`), while the L1 component accounts for the cost of posting transaction data to Ethereum mainnet (`l1_gas_used` × `l1_gas_price` × `l1_fee_scalar`). All amounts are normalized by dividing by 10^18 to convert from wei to ETH. Daily totals are aggregated and converted to USD using end-of-day price feeds.
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`, `block_timestamp`

### Component B: L1 settlement cost calculation

- **Purpose**: Calculates the cost Boba Network pays to settle transactions on Ethereum mainnet
- **Logic**: Identifies Ethereum transactions sent by Boba Network's sequencer addresses (both old address `0x5fd2cf99586b9d92f56cbad0a3ea4df256a0070b` and new address `0xfff0000000000000000000000000000000000288`). For each settlement transaction, calculates the total gas cost including both regular gas fees (`gas_used` × `gas_price`) and blob gas fees for EIP-4844 data (`blob_gas_used` × `blob_gas_price`). The sum represents the actual L1 settlement cost paid to Ethereum validators. Daily costs are aggregated and converted to USD.
- **Key fields**: `receipt_gas_used`, `receipt_effective_gas_price`, `receipt_blob_gas_used`, `receipt_blob_gas_price`, `to_address`

### Component C: Token incentives

- **Purpose**: Accounts for any token rewards or incentives paid to users
- **Logic**: Currently set to zero as Boba Network does not operate a token incentive program. This component is included for consistency with the standard earnings framework and can accommodate future incentive programs.
- **Key fields**: Static zero value for all time periods

### Component D: Expenses aggregation

- **Purpose**: Combines all operational expenses including L1 settlement costs and token incentives
- **Logic**: Sums the L1 settlement costs and token incentives for each day. Since token incentives are zero, expenses equal L1 settlement costs. This provides the total daily operational expense in USD.
- **Key fields**: `cost_of_revenue` from settlement fees, `token_incentives` (zero)

### Final aggregation

- **Combining components**: Revenue and expenses are combined using the earnings formula (Revenue - Expenses) through the `calculate_earnings` macro
- **Currency conversion**: All ETH amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied during the conversion process
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day granularity, ensuring consistent 24-hour periods
- **Final calculation**: Daily earnings equal daily revenue minus daily expenses, with zero-fill strategy applied to ensure continuous time series coverage and chain availability filtering to exclude periods when blockchain data is unavailable

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

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

Boba NetworkBOBA

Earnings

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