# Celo L2 Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees retained by Celo L2. Following the transition of Celo L1 (legacy) to a Layer 2 architecture, revenue is derived from the total gas fees paid by users to execute transactions on the network. This metric represents the total value captured by the protocol from selling blockspace before any operational expenses, developer incentives, or infrastructure costs are subtracted.

## 2. Data sources

- **Blockchain events**: Transaction data and block metadata from Celo L2
- **External data**: End-of-day price feeds for the native Celo L1 (legacy) asset and supported fee currencies such as USDT

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: To identify and calculate the total fees paid by users for network activity on Celo L2.
- **Logic**: Transaction records are parsed to extract gas price and gas usage for every successful transaction. For Celo L2 activity, revenue is calculated by multiplying the gas price by the actual gas units consumed. The specific asset used for fee payment is identified via on-chain currency identifiers; if no specific currency is indicated, the native Celo L1 (legacy) asset is assigned as the default fee token.
- **Key fields**: `gas_price`, `gas_used`, and `token_address`

### Component B: USD conversion and aggregation

- **Purpose**: To normalize fee values into a common currency for reporting and cross-project comparison.
- **Logic**: Daily fee totals are aggregated by transaction currency. These totals are normalized by asset decimal precision and multiplied by end-of-day price feeds to determine the USD value. In instances where specific stablecoins are used as fee currencies, asset addresses are mapped to reliable price sources to ensure accurate valuation. All values are then summed by day according to UTC boundaries to produce the final daily revenue metric for Celo L2.
- **Key fields**: `block_timestamp`, `token_address`, and `revenue`

*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 (L2)

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 L2

Revenue

Revenue

Chain breakdown