# Celo L1 (legacy) Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that a project retains, as determined by its take rate. For Celo L1 (legacy), this represents the base fees collected from network transactions, which are removed from circulation via a burn mechanism. This metric reflects the protocol-level earnings generated from transaction activity on the Celo L1 (legacy) blockchain prior to its transition to a Layer 2 architecture.

## 2. Data sources

- **Blockchain events**: Transaction and block data including gas usage and base fee parameters, covering Celo L1 (legacy)
- **External data**: End-of-day price feeds for assets used for fee payments, including native assets and supported stablecoins

## 3. Step-by-step calculation

### Component A: Transaction base fee calculation

- **Purpose**: To identify the protocol-retained portion of transaction fees.
- **Logic**: Individual transaction records and block headers are parsed to extract gas consumption and the base fee per gas unit. For each transaction, the base fee is calculated by multiplying the gas used by the specific base fee per gas value defined in the block. This calculation is applied to all transactions processed on the legacy Celo L1 (legacy) L1 chain prior to March 26, 2025.
- **Key fields**: `gas_used`, `base_fee_per_gas`, and `block_timestamp`.

### Component B: Valuation and aggregation

- **Purpose**: To normalize revenue values to USD for cross-asset comparison.
- **Logic**: Calculated base fee amounts are normalized by the decimal precision of the respective fee currency. These normalized values are multiplied by end-of-day price feeds based on the asset used for the transaction (such as Celo L1 (legacy) or stabilized assets). Daily revenue totals are aggregated by summing the USD-denominated base fees within UTC day boundaries.
- **Key fields**: `base_fee`, `token_address`, and `price_usd`.

*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.

Revenue

Blockchains (L1)

Validators process transactions and receive fees from users (supply-side fees).

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

Celo L1 (legacy)

Revenue

Revenue

Chain breakdown