# Katana Chain Fees Methodology

## 1. Overview

Fees are measured as the total value paid by users for transaction execution on Katana Chain. These fees are composed of Layer 2 (L2) execution fees, Layer 1 (L1) settlement fees, and Isthmus operator fees. All transaction-related costs are aggregated to represent the total economic value generated by the network's blockspace. Other Katana-related products, such as Katana Perps, Katana Vault Bridge, Katana AUSD Yield, and vKAT, are excluded from this product-level metric and are aggregated separately.

## 2. Data sources

- **Blockchain events**: Transaction execution receipts and gas parameters captured on Katana Chain
- **External data**: End-of-day price feeds for the native gas asset (ETH)

## 3. Step-by-step calculation

### Component A: L2 execution fee calculation

- **Purpose**: To calculate the gas fees associated with transaction execution on the Katana Chain Layer 2 network.
- **Logic**: L2 execution fees are calculated by multiplying the gas used by the effective gas price. The effective gas price is determined by coalescing the receipt effective gas price and the transaction gas price. The resulting native asset amount is normalized by the decimal precision of the native gas asset.
- **Key fields**: `gas_used`, `gas_price`, `receipt_effective_gas_price`

### Component B: L1 settlement fee calculation

- **Purpose**: To calculate the fees paid for settling Katana Chain transactions on Ethereum Layer 1.
- **Logic**: L1 settlement fees are extracted from transaction receipts. If a direct L1 fee is available, it is normalized by the decimal precision of the native gas asset. If the direct fee is unavailable, the fee is calculated by multiplying the L1 gas used, the L1 gas price, and the L1 fee scalar, followed by normalization. If neither is available, the L1 fee is set to zero.
- **Key fields**: `receipt_l1_fee`, `receipt_l1_gas_used`, `receipt_l1_gas_price`, `receipt_l1_fee_scalar`

### Component C: Isthmus operator fee calculation

- **Purpose**: To calculate the operator fees charged by the Isthmus sequencer.
- **Logic**: Isthmus operator fees are calculated using the operator fee constant and the operator fee scalar. The fee is computed by multiplying the gas used by the operator fee scalar, dividing by one million, adding the operator fee constant, and normalizing the final sum by the decimal precision of the native gas asset.
- **Key fields**: `receipt_operator_fee_constant`, `receipt_operator_fee_scalar`, `gas_used`

### Component D: Fee aggregation and USD conversion

- **Purpose**: To combine all gas fee components and convert the total to USD.
- **Logic**: For each transaction, the L2 execution fee, L1 settlement fee, and Isthmus operator fee are summed to produce the total native gas fee. These native fees are aggregated daily. The daily native fee totals are then multiplied by the end-of-day price of the native gas asset (ETH) to determine the final USD value. Daily boundaries are defined using UTC time.
- **Key fields**: `timestamp`, `fees`

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

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

Fees

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

Fees

Fees

Chain breakdown