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 Revenue Methodology

## 1. Overview

The Celo L1 (legacy) revenue metric measures the total fee revenue generated by the Celo L1 (legacy) blockchain protocol from transaction processing. This includes base fees (similar to Ethereum's EIP-1559 base fees) and gas fees, calculated differently based on Celo L1 (legacy)'s transition from L1 to L2 architecture on March 26, 2025. The metric answers how much revenue the Celo L1 (legacy) protocol generates from users paying transaction fees, providing insight into protocol usage and monetization.

## 2. Data sources

The calculation uses several core data sources:
- **Celo L1 (legacy) blockchain transaction records**: Complete transaction data including gas usage, gas prices, effective gas prices, fee currencies, sender/receiver addresses, and transaction hashes
- **Celo L1 (legacy) blockchain block headers**: Block-level data containing base fee per gas information and block timestamps
- **End-of-day token price feeds**: Daily closing prices for Celo L1 (legacy) native tokens and other fee currencies to enable USD conversion
- **Token metadata**: Decimal precision information for proper fee amount calculation and normalization

## 3. Step-by-step calculation

### Component A: Transaction data preparation
- **Purpose**: Extract and normalize transaction-level fee information from Celo L1 (legacy) blockchain
- **Logic**: Pull transaction records including gas consumption, gas pricing, and fee currency details. Apply decimal normalization by dividing gas prices by 10^18 to convert from wei to standard units. Handle fee currency logic by defaulting to Celo L1 (legacy)'s native token address `0x471ece3750da237f93b8e339c536989b8978a438` when the `fee_currency` field is null. Maintain the timeline split at March 26, 2025 to accommodate different calculation methods pre and post L2 transition.
- **Key fields**: `gas_used`, `gas_price`, `effective_gas_price`, `fee_currency`, `transaction_hash`, `from_address`, `to_address`, `block_timestamp`

### Component B: Block data preparation  
- **Purpose**: Extract base fee information from block headers for EIP-1559 style base fee calculations
- **Logic**: Pull block-level data and normalize the `base_fee_per_gas` field by dividing by 10^18 to convert from wei to standard units. This base fee represents the minimum fee per gas that goes directly to the protocol as revenue.
- **Key fields**: `base_fee_per_gas`, `block_number`, `block_timestamp`

### Component C: Base fee calculation (pre-March 26, 2025)
- **Purpose**: Calculate protocol base fee revenue for Celo L1 (legacy) L1 transactions
- **Logic**: Join transaction data with block data on block number and timestamp. Multiply the `gas_used` from each transaction by the `base_fee_per_gas` from the corresponding block to get the base fee amount that goes to the protocol. This calculation follows EIP-1559 logic where base fees are burned or collected by the protocol rather than going to miners/validators.
- **Key fields**: `base_fee` (calculated as gas_used × base_fee_per_gas), `token_address`, `block_timestamp`

### Component D: Gas fee calculation (timeline split)
- **Purpose**: Calculate total gas fee revenue using different methodologies for L1 and L2 periods
- **Logic**: For transactions before March 26, 2025, calculate gas fees as `gas_used` multiplied by `effective_gas_price` to capture the full gas fee paid. For transactions after March 26, 2025 (Celo L1 (legacy) L2), calculate L2 gas fees as `gas_price` multiplied by `gas_used` divided by 10^18, with no L1 component since Celo L1 (legacy) L2 does not have separate L1 gas fees like other L2 solutions.
- **Key fields**: `gas_fee` (calculated differently based on timeline), `token_address`, `block_timestamp`

### Final aggregation
- **Combining components**: Before March 26, 2025, use base fee calculations and classify as L1 revenue with product ID 'Celo L1 (legacy)' and market sector 'blockchains_l1'. After March 26, 2025, use gas fee calculations and classify as L2 revenue with product ID 'Celo L1 (legacy) L2' and market sector 'blockchains_l2'. Union these two revenue streams to create a complete timeline.
- **Currency conversion**: Apply USD conversion using end-of-day price feeds for each fee token, with decimal correction to ensure proper unit conversion from blockchain native units to standard token amounts before applying exchange rates.
- **Time aggregation**: Truncate timestamps to daily boundaries and aggregate all fees within each day. Apply a zero-fill strategy to ensure continuous daily data coverage even when no transactions occurred.
- **Final calculation**: Sum all protocol fees (either base fees or gas fees depending on the time period) per day, convert to USD, and classify by appropriate business segments and product identifiers to distinguish between Celo L1 (legacy) L1 and Celo L1 (legacy) L2 revenue streams.

*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.

CeloCELO

Revenue

Revenue

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