# Katana Chain Cost of revenue Methodology

## 1. Overview

Cost of revenue for Katana Chain is measured as the expenses incurred for settling transaction data on the Ethereum mainnet. These payments are made to ensure data availability and settlement for all Layer 2 transactions. This metric is utilized to determine the protocol's profitability after accounting for the costs of outsourcing security and data storage to the underlying Layer 1 blockchain.

## 2. Data sources

- **Blockchain events**: Transaction data from Katana Chain
- **External data**: End-of-day price feeds for the native gas asset

## 3. Step-by-step calculation

### Component A: L1 data availability fee extraction

- **Purpose**: Captures the expenses paid to Ethereum for data availability and settlement.
- **Logic**: L1 fee components are parsed from transaction data on Katana Chain. The total L1 cost is calculated by identifying the L1 fee attribute or by multiplying the L1 gas used by the L1 gas price and the applicable L1 fee scalar.
- **Key fields**: `l1_fee`, `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`

### Component B: USD conversion and aggregation

- **Purpose**: Normalizes costs to USD for cross-asset comparison and reporting.
- **Logic**: Extracted L1 fees are aggregated by day and normalized by decimal precision. The resulting values are multiplied by end-of-day price feeds for the native gas asset. Daily totals are calculated using UTC day boundaries.
- **Key fields**: `block_timestamp` and `token_address` (ETH)

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

Expenses paid to third parties to deliver core service output.

Cost of revenue

Blockchains (L2)

The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

Katana Chain

Cost of revenue

Cost of revenue

Chain breakdown