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.

twitter

discord

etherscan

website

Blockchains (L2)

Fraxtal

# Fraxtal Cost of revenue Methodology

## 1. Overview

Cost of revenue measures the expenses Fraxtal incurs when outsourcing core infrastructure requirements to third-party service providers. For Fraxtal, this specifically represents the settlement fees paid to the Ethereum mainnet for data availability and the submission of transaction batches. These payments are required to inherit the security of the underlying layer and are considered the primary operating expense for the network.

## 2. Data sources

- **Blockchain events**: Ethereum transaction data associated with the Fraxtal sequencer address, covering Ethereum
- **External data**: End-of-day price feeds for the native gas asset (ETH)

## 3. Step-by-step calculation

### Component A: Sequencer transaction identification

- **Purpose**: Identify all transactions submitted by Fraxtal to Ethereum for data settlement
- **Logic**: Transactions are parsed from the Ethereum blockchain where the recipient address matches the designated Fraxtal sequencer. This process isolates the specific activity related to state root updates and transaction batching.
- **Key fields**: `block_timestamp` (timing), `transaction_hash` (identification), `to_address` (sequencer identification)

### Component B: L1 settlement cost calculation

- **Purpose**: Calculate the total gas and blob fees paid for each settlement transaction
- **Logic**: Fees are calculated by combining execution costs and data availability costs. Execution costs are derived by multiplying `gas_used_amount` by `gas_price`. For transactions involving EIP-4844, blob costs are calculated by multiplying `blob_gas_used_amount` by `blob_gas_price`. Both components are summed to determine the total settlement fee per transaction. Amounts are then normalized by decimal precision.
- **Key fields**: `gas_price`, `gas_used_amount`, `blob_gas_price`, `blob_gas_used_amount`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize settlement expenses to USD and aggregate by daily intervals
- **Logic**: Daily settlement fees are summed and multiplied by the end-of-day price feed for the native Ethereum asset. Data is aggregated using UTC day boundaries to align with standard reporting periods.
- **Key fields**: `timestamp`, `token_address`, `price_usd`

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

Expenses paid to third parties to deliver core service output.

FraxtalFXTL

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown