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 Fees Methodology

## 1. Overview

The Ink fees metric measures the total daily gas fees paid by users on the Ink Layer 2 blockchain, denominated in USD. This metric captures the cost of executing transactions on Ink, which includes both Layer 2 execution fees and Layer 1 data availability fees that are passed through to users. As a Layer 2 solution, Ink transactions incur dual fee components: L2 fees for computation on Ink itself, and L1 fees for data posting to Ethereum for security and finality.

## 2. Data sources

- **Ink transaction records**: Complete transaction history from the Ink blockchain including gas usage, pricing, and execution details
- **End-of-day token price feeds**: ETH/USD exchange rates for currency conversion
- **Token metadata**: Standard ETH token information including contract addresses and symbol mappings

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize transaction-level gas and fee information from raw Ink blockchain data
- **Logic**: Raw transaction records are processed to extract key fields including block timestamps, transaction hashes, sender and recipient addresses, gas usage metrics, and pricing data. Each transaction contains both Layer 2 specific metrics (`gas_used`, `gas_price`) and Layer 1 metrics (`l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`) since Ink must post transaction data to Ethereum. All transactions are standardized with the ETH token address `0x4200000000000000000000000000000000000006` and symbol `ETH` since gas fees are paid in ETH
- **Key fields**: `block_timestamp` for timing, `gas_used` and `gas_price` for L2 execution costs, `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar` for L1 data availability costs

### Component B: Gas fee calculation  
- **Purpose**: Calculate the total gas fee for each transaction by combining L2 execution fees and L1 data availability fees
- **Logic**: For each transaction, two separate fee components are calculated and then summed. The L2 gas fee is calculated by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei to ETH. The L1 gas fee is calculated by multiplying `l1_gas_used` by `l1_gas_price` by `l1_fee_scalar`, then dividing by 1e18 to convert from wei to ETH. The `l1_fee_scalar` is a dynamic multiplier that adjusts L1 costs based on network conditions. Both fee components are then added together to get the total transaction fee in ETH
- **Key fields**: `l2_gas_fee` (calculated L2 execution cost), `l1_gas_fee` (calculated L1 data availability cost), total `fees` (sum of both components)

### Component C: Daily aggregation and metadata assignment
- **Purpose**: Aggregate transaction-level fees to daily totals and assign proper business classification metadata
- **Logic**: Transaction fees are aggregated by day using timestamp truncation to daily boundaries. Each daily record is assigned standard metadata including `timestamp_grain` as 'day', `business_line` as 'blockchain', `market_sector_id` as 'blockchains_l2' to classify Ink as a Layer 2 solution, and `business_segment_id` as 'blockchain'. The `chain` field is initially set to 'blockchain' during processing and the `token_address` is preserved for the ETH token used in gas payments
- **Key fields**: Daily `timestamp`, aggregated `fees` in ETH, business classification fields

### Final aggregation
- **Combining components**: Daily fee totals in ETH are combined with end-of-day price data for currency conversion
- **Currency conversion**: ETH-denominated fees are converted to USD using end-of-day ETH/USD exchange rates, with decimal correction disabled since the fees are already properly scaled
- **Chain recasting**: The chain identifier is recast from 'blockchain' to 'ink' for proper protocol identification in the final output
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation, ensuring consistent daily totals regardless of transaction timing within each day  
- **Final calculation**: The final metric represents the total USD value of all gas fees (L1 + L2 components) paid on Ink for each day, with gap filling applied to ensure zero values for days with no transaction activity, and chain availability filtering applied to ensure data quality

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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