github

twitter

discord

website

Blockchains (L2)

Boba Network

# Boba Network Supply-side fees Methodology

## 1. Overview

Boba Network supply-side fees represent the portion of transaction fees that are distributed to network validators, stakers, or other supply-side participants. This metric answers the question: "How much revenue does Boba Network share with its supply-side participants?" 

For Boba Network, this metric is consistently set to zero, indicating that the protocol does not distribute fees to supply-side participants. All sequencer fees are retained by the protocol operator rather than being shared with validators or stakers.

## 2. Data sources

The calculation relies on these underlying data sources:
- **Ethereum transaction records**: Complete transaction data including gas usage, gas prices, and blob gas information for settlement transactions
- **End-of-day token price feeds**: USD conversion rates for final metric standardization
- **Token metadata**: Information about token symbols and decimal places for proper formatting

## 3. Step-by-step calculation

### Component A: L1 settlement cost tracking
- **Purpose**: Identifies and measures the cost of Boba Network's L1 settlement operations on Ethereum
- **Logic**: Filters Ethereum transactions to capture only those sent to Boba Network's sequencer addresses, including both the historical sequencer address `0x5fd2cf99586b9d92f56cbad0a3ea4df256a0070b` and the current sequencer address `0xfff0000000000000000000000000000000000288`. For each qualifying transaction, calculates total gas costs by combining regular gas fees (gas used amount multiplied by gas price) and blob gas fees (blob gas used amount multiplied by blob gas price). Converts the total cost from wei to ETH by dividing by 10^18
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for uniqueness, `gas_used_amount` and `gas_price` for regular gas costs, `blob_gas_used_amount` and `blob_gas_price` for EIP-4844 blob costs, `l1_settlement_amount` as the final ETH cost per transaction

### Component B: Daily aggregation of settlement costs
- **Purpose**: Aggregates L1 settlement costs into daily totals for consistent time series reporting
- **Logic**: Groups L1 settlement transactions by day using timestamp truncation, summing all `l1_settlement_amount` values within each day. Associates each day's data with chain identifier, market sector, and business segment classifications. Uses incremental processing with day-level partitioning for efficient updates
- **Key fields**: `timestamp` truncated to day boundaries, `cost_of_revenue` as the daily sum of settlement costs, `chain_id` identifying the blockchain, `token_address` for the settlement token (wrapped ETH)

### Component C: Supply-side fee calculation  
- **Purpose**: Determines the portion of fees distributed to supply-side participants
- **Logic**: Takes the daily settlement cost data and explicitly sets `fees_supply_side` to zero for all records, regardless of the underlying settlement costs. This hardcoded zero value reflects Boba Network's business model where sequencer fees are retained by the protocol operator rather than shared with validators or stakers
- **Key fields**: `fees_supply_side` consistently set to 0, maintaining all other timestamp and identifier fields from the daily aggregation

### Final aggregation
- **Combining components**: The supply-side fees are directly sourced from the zero-setting logic, with no complex joining or summation required since the value is uniformly zero
- **Currency conversion**: Standard USD conversion applied through the finalization macro using end-of-day price feeds, though the base value remains zero
- **Time aggregation**: Daily boundary logic maintained from the settlement cost aggregation, with zero-fill strategy applied to ensure complete time series coverage
- **Final calculation**: Supply-side fees equal zero for all time periods, representing Boba Network's model of retaining all sequencer revenue rather than distributing it to supply-side participants

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

Portion of fees distributed to service providers or supply-side participants.

Boba NetworkBOBA

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown