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.

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Blockchains (L2)

Celo

# Celo Cost of revenue Methodology

## 1. Overview

Celo L1 (legacy) cost of revenue measures the daily L1 settlement fees paid by the Celo L1 (legacy) L2 sequencer on Ethereum. This metric captures the operational cost of maintaining Celo L1 (legacy)'s Layer 2 network by tracking gas fees spent on settlement transactions. The calculation identifies specific sequencer transactions on Ethereum, calculates their total gas costs (including blob gas), aggregates them daily, and converts to USD to provide a standardized measure of Celo L1 (legacy)'s settlement expenses.

## 2. Data sources

- **Ethereum transaction records**: Complete transaction data from the Ethereum blockchain including gas usage, gas prices, blob gas information, and transaction metadata
- **End-of-day token price feeds**: ETH price data for converting gas fees to USD values
- **Token metadata**: Information about wrapped ETH token (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) used in the calculation

## 3. Step-by-step calculation

### Component A: Settlement transaction identification
- **Purpose**: Identify Celo L1 (legacy) sequencer settlement transactions on Ethereum
- **Logic**: Filter Ethereum transaction records to find transactions where the `from_address` matches Celo L1 (legacy)'s sequencer address (`0x0cd08c7f7a96aa9635f761b49216b9ea74c5ca60`) and the `to_address` matches Celo L1 (legacy)'s null address (`0xff00000000000000000000000000000000042220`). Only include transactions from March 26, 2025 onwards when Celo L1 (legacy)'s settlement pattern began. Extract transaction details including `block_timestamp`, `transaction_hash`, gas price information, and gas usage amounts.
- **Key fields**: `gas_price` (effective gas price paid), `blob_gas_price` (blob gas price if applicable), `gas_used_amount` (total gas consumed), `blob_gas_used_amount` (blob gas consumed), and timing information

### Component B: Gas fee calculation
- **Purpose**: Calculate the total ETH cost of each settlement transaction
- **Logic**: For each identified settlement transaction, compute the total gas fee by multiplying `gas_used_amount` by `gas_price` to get regular gas costs, then add blob gas costs by multiplying `blob_gas_used_amount` by `blob_gas_price` (using zero if blob gas fields are null). Convert the result from wei to ETH by dividing by 10^18. Assign the wrapped ETH token address and symbol for downstream processing.
- **Key fields**: `settlement_amount` (total ETH cost per transaction), `token_address` (wrapped ETH contract), `token_symbol` (ETH)

### Component C: Daily aggregation
- **Purpose**: Sum settlement costs by day and assign business metadata
- **Logic**: Group settlement transactions by day using `timestamp_trunc` to create daily boundaries. Sum the `settlement_amount` values for all transactions within each day to get total daily settlement costs. Assign business categorization metadata including `chain_id` as 'ethereum', `market_sector_id` as 'blockchains_l2', `business_segment_id` as 'blockchain', and `product_id` as 'Celo L1 (legacy) L2'. Set `timestamp_grain` to 'day' to indicate daily aggregation.
- **Key fields**: `cost_of_revenue` (daily total settlement fees), `timestamp` (daily boundary), business classification fields

### Final aggregation
- **Combining components**: The daily aggregated settlement fees represent the complete cost of revenue without further combination needed
- **Currency conversion**: Convert ETH settlement amounts to USD using end-of-day token price feeds, applying the conversion to the `cost_of_revenue` field while maintaining decimal precision
- **Time aggregation**: Daily boundaries are established using day-level timestamp truncation, ensuring all settlement transactions within a 24-hour period are grouped together
- **Final calculation**: The final cost of revenue value equals the sum of all L1 settlement gas fees (regular gas plus blob gas costs) paid by the Celo L1 (legacy) sequencer on each day, converted from ETH to USD. The finalization process validates business IDs, ensures schema compliance, and applies a zero-fill strategy for any missing days to maintain continuous time series data.

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

Expenses paid to third parties to deliver core service output.

CeloCELO

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown