Fraxtal batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Fraxtal is an Ethereum Layer 2 (L2) blockchain built on the OP Stack by Frax Finance. It uses frxETH as the gas token and features a blockspace incentive system called Flox. Fraxtal launched in February 2024.

Frax Finance team owns and governs the protocol. Frax Finance's investors include Dragonfly Capital, Mechanism Capital, Galaxy Digital, etc.

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Fraxtal

# Fraxtal Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) measures the revenue generated per active user over a fixed 24-hour window. This metric reflects the ability of the Fraxtal network to monetize its individual user base on a daily basis through transaction-related activities. It is calculated by dividing the total daily revenue—consisting of both L2 execution fees and L1 data availability fees—by the number of unique active users (daily).

## 2. Data sources

- **Blockchain events**: Transaction data from the Fraxtal network
- **External data**: End-of-day price feeds for native gas assets, including frxETH and FRAX
- **Revenue**: Derived from the Revenue metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Gas fee and revenue capture

- **Purpose**: Calculate the total daily revenue generated by the network from transaction fees
- **Logic**: Gas fees are calculated as the sum of L2 execution fees and L1 data availability fees for every transaction. L2 fees are determined by multiplying the gas used by the gas price. L1 fees are calculated by multiplying the L1 gas used, the L1 gas price, and the L1 fee scalar. The native gas asset is identified as frxETH for transactions prior to the North Star hardfork and as FRAX for transactions occurring after the hardfork. Daily revenue is calculated as the sum of all transaction fees, normalized by decimal precision, and converted to USD using end-of-day price feeds.
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`

### Component B: Active user identification

- **Purpose**: Identify the number of unique daily participants on the network
- **Logic**: active users (daily) are identified by filtering for unique transaction signers. The transaction sender address is extracted from every successful transaction on the network. These addresses are aggregated to determine the total number of unique active users (daily) within a UTC 24-hour window.
- **Key fields**: `from_address`

### Component C: Final ARPU calculation

- **Purpose**: Calculate the average revenue generated per individual user
- **Logic**: Total daily revenue is divided by the total count of active users (daily). This calculation is performed at a daily granularity with UTC day boundaries. If no activity is detected for a given period, the metric is set to zero to ensure a continuous time series.
- **Key fields**: `revenue`, `user_dau`

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

FraxtalFXTL

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape