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 Cost of revenue Methodology

## 1. Overview

The Ink cost of revenue metric measures the daily USD value of gas fees paid by Ink's sequencer to settle transaction data on Ethereum Layer 1. This represents Ink's primary operational cost for maintaining security and data availability through L1 settlement. The metric captures both regular gas costs and blob gas costs (EIP-4844) incurred when the sequencer posts batched transaction data to Ethereum.

## 2. Data sources

- **Ethereum transaction records**: Complete transaction data from Ethereum mainnet, including gas usage, gas prices, blob gas usage, and blob gas prices
- **End-of-day ETH price feeds**: Daily ETH to USD exchange rates for currency conversion
- **Token metadata**: WETH (Wrapped Ethereum) token information, as settlement fees are denominated in ETH

## 3. Step-by-step calculation

### Component A: L1 settlement transaction identification
- **Purpose**: Identifies all Ethereum transactions made by Ink's sequencer for L1 settlement
- **Logic**: Filters Ethereum transaction records where the recipient address equals `0x005969bf0ecbf6edb6c47e5e94693b1c3651be97` (Ink's sequencer address). This captures all transactions where Ink posts settlement data to Ethereum L1. Each transaction record includes gas usage metrics, gas prices, blob gas usage (if applicable), and transaction metadata
- **Key fields**: `to_address` for filtering, `receipt_effective_gas_price` and `receipt_blob_gas_price` for gas pricing, `receipt_gas_used` and `receipt_blob_gas_used` for usage amounts, `block_timestamp` for timing

### Component B: Gas cost calculation
- **Purpose**: Calculates the total gas cost for each settlement transaction in ETH
- **Logic**: For each filtered transaction, computes the total gas cost by combining regular gas costs and blob gas costs. Regular gas cost equals gas used multiplied by effective gas price. Blob gas cost equals blob gas used multiplied by blob gas price, with null values treated as zero. The total cost is converted from wei to ETH by dividing by 10^18
- **Key fields**: `gas_used_amount`, `gas_price`, `blob_gas_used_amount`, `blob_gas_price`, resulting in `l1_settlement_amount`

### Component C: Daily aggregation
- **Purpose**: Aggregates settlement costs to daily totals
- **Logic**: Groups transactions by day using timestamp truncation and sums all L1 settlement amounts within each day. Includes business classification fields marking this as a blockchain L2 market sector metric. Uses incremental processing to handle only recent data changes efficiently
- **Key fields**: Daily `timestamp`, aggregated `cost_of_revenue` as the sum of all settlement amounts

### Final aggregation
- **Combining components**: The daily settlement fee totals flow directly from the aggregation component
- **Currency conversion**: ETH amounts are converted to USD using end-of-day ETH price feeds, maintaining the original decimal precision without additional corrections
- **Time aggregation**: Data is aggregated at daily granularity with timestamp truncation to day boundaries
- **Final calculation**: The final metric represents the total USD value of gas fees paid daily by Ink's sequencer for L1 settlement, with zero-filling applied for days with no settlement activity and chain availability filtering to ensure data completeness

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

Expenses paid to third parties to deliver core service output.

Ink

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown