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 Revenue Methodology

## 1. Overview

Revenue is measured as the portion of transaction fees retained by Fraxtal from user activity on the network. These fees are generated from both L2 execution costs and L1 security costs paid by users to submit transactions and settle data to Ethereum. Revenue represents the gross income of the protocol before the deduction of L1 data availability costs, token incentives, or other operating expenses.

## 2. Data sources

- **Blockchain events**: Transaction-level execution data, including gas usage and price parameters, captured from the Fraxtal network
- **External data**: End-of-day price feeds for the native gas assets (frxETH and FRAX)

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: To determine the total fees paid by users for network usage.
- **Logic**: Transaction parameters are parsed to calculate the distinct components of the network fee. L2 execution fees are calculated by multiplying the gas used by the gas price. L1 data availability fees are calculated by multiplying the L1 gas used, the L1 gas price, and the L1 fee scalar. Both components are then summed to determine the total fee per transaction.
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`

### Component B: Native asset identification and normalization

- **Purpose**: To assign the correct native gas asset and normalize values based on network upgrades.
- **Logic**: The native gas asset is identified based on the block timestamp relative to the North Star hardfork. Transactions occurring before April 29, 2025, are associated with frxETH (wrapped as wfrxETH), while transactions occurring after this timestamp are associated with FRAX (wrapped as WFRAX). All fee amounts are normalized by the decimal precision of the respective native asset.
- **Key fields**: `block_timestamp` and `token_address`

### Component C: Revenue aggregation and USD conversion

- **Purpose**: To aggregate fees and convert the total value to USD.
- **Logic**: Total fees are aggregated by day and multiplied by the end-of-day price feeds for the identified native gas assets. Revenue is set equal to 100% of the total fees collected, reflecting the protocol's gross earnings before any supply-side distributions or infrastructure costs. Daily values are calculated using UTC day boundaries.
- **Key fields**: `fees` and `price_usd`

*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.

FraxtalFXTL

Revenue

Revenue

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