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

Gravity Alpha is an L2 smart contract platform for decentralized applications on Ethereum. Gravity Alpha was founded by Galxe and launched in 2024.

G tokenholders own and govern the protocol. Galxe's investors include Arbitrum Foundation, Multicoin Capital, Dragonfly Capital, etc.

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Gravity Alpha Mainnet

# Gravity Alpha Mainnet Earnings Methodology

## 1. Overview

GravityAlpha earnings represents the net profit generated by the GravityAlpha Layer 2 blockchain network. The metric measures the difference between revenue (gas fees collected from users) and expenses (costs to settle transactions on Ethereum Layer 1). This provides insight into the operational profitability of the L2 network by calculating: Revenue - Expenses = Earnings. The calculation helps assess the financial sustainability and efficiency of the layer 2 scaling solution.

## 2. Data sources

The earnings calculation relies on several key data sources:

- **GravityAlpha L2 transaction records**: All transactions executed on the GravityAlpha network, including gas usage and gas price information
- **Ethereum mainnet transaction data**: Transactions from the sequencer address (`0xba369bd77a346babcd282cb1a015194e8ec54542`) to the sequencer inbox contract (`0x8d99372612e8cfe7163b1a453831bc40eaeb3cf3`) representing batch submissions
- **End-of-day price feeds**: G token price data from CoinGecko API (`g-token` identifier) for converting L2 fees to USD
- **WETH price data**: Ethereum price feeds for converting L1 settlement costs from WETH to USD
- **Token metadata**: G token contract address (`0xbb859e225ac8fb6be1c7e38d87b767e95fef0ebd`) and WETH contract address (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`)

## 3. Step-by-step calculation

### Component A: L2 transaction fee collection (revenue)

- **Purpose**: Calculates daily revenue from gas fees paid by users on the GravityAlpha L2 network
- **Logic**: Extracts all transactions from GravityAlpha L2 network and calculates gas fees by multiplying `gas_used_amount` by `gas_price` and dividing by 1e18 to normalize for 18 decimals. Transactions are aggregated daily by truncating `block_timestamp` to day boundaries. The aggregated fees are then converted to USD by joining with G token prices from CoinGecko on matching daily timestamps
- **Key fields**: `block_timestamp`, `gas_used_amount`, `gas_price`, `gas_fee_amount`, and daily G token `price_usd`

### Component B: L1 settlement costs (expenses)

- **Purpose**: Calculates daily expenses from L1 settlement costs paid to submit transaction batches to Ethereum mainnet
- **Logic**: Filters Ethereum transactions where `from_address` equals the sequencer address and `to_address` equals the sequencer inbox contract address. Calculates settlement costs by multiplying `receipt_gas_used` by `receipt_effective_gas_price` and dividing by 1e18 to get WETH amounts. Daily aggregation is performed by truncating `block_timestamp` to day boundaries. The aggregated costs are converted to USD using WETH price data
- **Key fields**: `receipt_gas_used`, `receipt_effective_gas_price`, `block_timestamp`, and WETH price conversion data

### Final aggregation

- **Combining components**: The revenue and expenses components are combined using the `calculate_earnings` macro which performs a subtraction operation (Revenue - Expenses) to derive net earnings
- **Currency conversion**: All amounts are converted to USD - L2 fees using G token prices and L1 costs using WETH prices, both sourced from end-of-day price feeds
- **Time aggregation**: Both revenue and expense streams are aggregated to daily boundaries using timestamp truncation to day granularity
- **Final calculation**: Daily earnings equals daily L2 gas fee revenue minus daily L1 settlement expenses, with missing data points filled with zero values using the `fill_zeros` strategy to ensure complete time series coverage

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Gravity Alpha MainnetG

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