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 Revenue Methodology

## 1. Overview

Ink revenue represents the total gas fees collected by the Ink blockchain network. This metric measures the protocol's revenue generation by capturing all transaction fees paid by users for transaction execution on the Ink L2 network and associated Layer 1 data availability costs on Ethereum mainnet. The calculation sums both L2 execution fees and L1 data availability fees, converts them to USD, and aggregates them daily.

## 2. Data sources

- **Blockchain transactions**: Raw Ink blockchain transaction records containing gas usage, gas prices, and fee components
- **External data**: End-of-day ETH price feeds for USD conversion
- **Token metadata**: ETH token information including contract address (`0x4200000000000000000000000000000000000006`) and symbol

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize transaction data from the Ink blockchain
- **Logic**: Raw transaction data is extracted from Ink blockchain records and standardized with consistent field types and formats. Each transaction includes the sending and receiving addresses, gas usage metrics, gas pricing information, and L1 fee components. The ETH token address is hardcoded as the gas token since all fees are paid in ETH on Ink.
- **Key fields**: `block_timestamp` for timing, `gas_used` for L2 execution gas, `gas_price` for L2 gas pricing, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar` for L1 calculations, and `l1_fee` for direct L1 fee values

### Component B: Gas fee calculation
- **Purpose**: Calculate total gas fees for each transaction including both L2 and L1 components
- **Logic**: For each transaction, L2 gas fees are calculated by multiplying gas used by gas price and converting from wei to ETH by dividing by 1e18. L1 gas fees account for Ethereum mainnet data availability costs and can be calculated two ways: using the direct `l1_fee` field when available, or computing it as the product of L1 gas used, L1 gas price, and L1 fee scalar, also converted from wei to ETH. The calculation prefers the direct L1 fee value when available, falling back to the computed value otherwise. Total gas fees combine both L2 and L1 components.
- **Key fields**: `l2_gas_fee` (computed as gas_used × gas_price ÷ 1e18), `l1_gas_fee` (either direct `l1_fee` or computed value), and `timestamp` truncated to day granularity

### Component C: Daily aggregation and USD conversion
- **Purpose**: Aggregate transaction fees to daily totals and convert to USD
- **Logic**: Transaction fees are grouped by day using timestamp truncation and summed to calculate total daily fees in ETH. The daily ETH fee totals are then converted to USD using end-of-day ETH price feeds. Currency conversion accounts for token decimals and applies appropriate exchange rates based on the transaction date.
- **Key fields**: Daily aggregated `fees` in ETH, converted to USD amounts, with `timestamp` at day granularity and `chain_id` set to 'ink'

### Final aggregation
- **Combining components**: The gas fees represent the complete fee structure for Ink, combining L2 execution costs and L1 data availability fees into a single daily total
- **Currency conversion**: ETH fee amounts are converted to USD using end-of-day price feeds, with proper decimal handling for ETH (18 decimals)
- **Time aggregation**: Fees are aggregated to daily boundaries using timestamp truncation, ensuring consistent daily totals
- **Final calculation**: Revenue equals the total daily gas fees in USD, since gas fees represent Ink's primary revenue stream as a blockchain network. Data quality checks ensure completeness and gap-filling strategies maintain consistent time series data.

*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.

Ink

Revenue

Revenue

Competitive landscape

Chain breakdown