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

Ethereum is a smart contract platform for decentralized applications (a blockchain). Ethereum was founded by Vitalik Buterin, Anthony Di Iorio, Mihai Alisie, etc. and launched in 2015.

ETH holders own and govern the protocol. They currently take a cut of the total transaction fees (base fee) paid by users (revenue). Ethereum’s investors include KR1, Block Ventures, 8 Decimal Capital, etc.

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# Ethereum Revenue Methodology

## 1. Overview

Ethereum revenue represents the total fees burned by the Ethereum network, consisting of base fees and blob fees collected from transaction execution. This metric measures the protocol's fee burn mechanism introduced with EIP-1559, where base fees are permanently removed from circulation rather than paid to validators. The calculation aggregates daily fee burn amounts across all Ethereum transactions and converts them to USD values.

## 2. Data sources

The calculation uses the following raw data sources:
- **Ethereum transaction records**: Complete transaction data including gas usage metrics, effective gas prices, blob gas consumption, and blob gas pricing
- **Ethereum block data**: Block-level information containing base fee per gas rates for each block
- **End-of-day token price feeds**: ETH to USD conversion rates for revenue valuation

## 3. Step-by-step calculation

### Component A: Base fee calculation
- **Purpose**: Calculate the base fees burned per transaction, which are the portion of transaction fees permanently removed from circulation
- **Logic**: For each Ethereum transaction, extract the `gas_used` amount and join with block data to obtain the `base_fee_per_gas` rate. The base fee per gas values are converted from wei to ETH by dividing by 10^18. Calculate the base fee amount by multiplying `gas_used` by `base_fee_per_gas` for each transaction.
- **Key fields**: `gas_used` (gas consumed by transaction), `base_fee_per_gas` (block-level base fee rate), `base_fee_amount` (calculated burned fees)

### Component B: Blob fee calculation  
- **Purpose**: Calculate blob fees paid for blob transactions, which handle data availability for layer 2 rollups
- **Logic**: For transactions with blob usage, extract `blob_gas_used` and `blob_gas_price` from transaction records. The blob gas price is converted from wei to ETH by dividing by 10^18. Calculate the blob fee amount by multiplying `blob_gas_used` by `blob_gas_price` for each applicable transaction.
- **Key fields**: `blob_gas_used` (blob gas consumed), `blob_gas_price` (blob gas price rate), `blob_fee_amount` (calculated blob fees)

### Daily aggregation
- **Base fees**: Sum all transaction-level `base_fee_amount` values by day using timestamp truncation to daily boundaries
- **Blob fees**: Sum all transaction-level `blob_fee_amount` values by day using timestamp truncation to daily boundaries
- **Time boundaries**: Use timestamp truncation to day granularity for consistent daily aggregation

### Final aggregation
- **Combining components**: Union the daily base fee amounts and daily blob fee amounts into a single dataset, treating both as revenue components
- **Currency conversion**: Convert ETH amounts to USD using end-of-day price feeds through the conversion macro
- **Time aggregation**: Maintain daily granularity with proper timestamp and timestamp_grain fields
- **Final calculation**: The total daily Ethereum revenue equals the sum of base fees burned plus blob fees paid, converted to USD values. Missing days are filled with zero values to maintain complete time series coverage.

*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.

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