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

Ink is an Ethereum Layer 2 (L2) blockchain built on Optimism's Superchain, focused on providing a secure, scalable infrastructure for Web3 applications.

Kraken team owns and governs the protocol. Kraken's investors include RIT Capital Partners, Hummingbird Ventures, Money Partners Group, etc.

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Blockchains (L2)

# Ink Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for Ink measures the daily average revenue generated per active user on the Ink blockchain. This metric provides insight into the monetization efficiency of the network by dividing total daily revenue (from transaction fees) by the number of daily active users. ARPU helps assess the economic value generated per user and track the network's revenue productivity over time.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Ink blockchain transaction records**: Complete transaction data including gas usage metrics, gas prices, transaction hashes, sender and receiver addresses, and timestamps
- **End-of-day token price feeds**: ETH/USD exchange rates used to convert gas fees from ETH denomination to USD values
- **ETH token metadata**: Token information for ETH (address `0x4200000000000000000000000000000000000006` and symbol 'ETH') used as the native token for gas fee payments

## 3. Step-by-step calculation

### Component A: Daily revenue calculation
- **Purpose**: Calculate total daily revenue from transaction fees paid on the Ink blockchain
- **Logic**: Process all Ink blockchain transactions to extract gas usage data including `gas_used`, `l1_gas_used`, `gas_price`, `l1_gas_price`, and `l1_fee_scalar`. For each transaction, calculate L2 gas fee by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei to ETH. Calculate L1 gas fee by multiplying `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`, then dividing by 1e18. Sum L1 and L2 gas fees to get total transaction fee. Convert each transaction fee from ETH to USD using end-of-day price feeds. Group transactions by day (using timestamp truncation) and sum all fees to get daily revenue totals.
- **Key fields**: `gas_used` (L2 gas consumption), `l1_gas_used` (L1 gas consumption), `gas_price` (L2 gas price), `l1_gas_price` (L1 gas price), `l1_fee_scalar` (L1 fee multiplier), `fees` (total transaction fee in USD)

### Component B: Daily active users calculation  
- **Purpose**: Count unique daily active users on the Ink blockchain
- **Logic**: Process all Ink blockchain transactions to identify unique users based on transaction sender addresses (`from_address`). Group transactions by day using timestamp truncation. For each day, count distinct sender addresses to determine daily active users. Use HyperLogLog (HLL) functions for efficient distinct counting, which enables scalable aggregation across multiple dimensions. Apply aggregation logic to create breakdowns by project, chain, user type, and product dimensions while maintaining accurate distinct user counts.
- **Key fields**: `from_address` (transaction sender, classified as user), `user_dau` (distinct daily active users), `block_timestamp` (transaction timestamp)

### Final aggregation
- **Combining components**: Join daily revenue totals with daily active user counts by matching on the same day timestamp
- **Currency conversion**: All gas fees are converted from ETH denomination to USD using end-of-day price feeds, ensuring consistent currency representation
- **Time aggregation**: Both revenue and user metrics use daily boundaries created by truncating timestamps to day level, ensuring aligned time periods
- **Final calculation**: Daily ARPU equals daily revenue divided by daily active users (ARPU = Daily Revenue / Daily Active Users). Days with missing data are filled with zero values to maintain time series continuity

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

Ink

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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