# Katana Chain Revenue Methodology

## 1. Overview

Revenue is measured as the portion of fees that a project retains, as determined by its take rate. For Katana Chain, revenue is defined as 100% of the transaction fees (gas fees) collected on the network, as there is no supply-side payout. These fees are generated from transaction execution, Layer 1 settlement, and operator fees. Fees and revenues from other products, such as Katana Perps, Katana Vault Bridge, Katana AUSD Yield, and vKAT, are excluded from the Katana Chain product metric and are accounted for separately. The metric is utilized to evaluate the economic activity and blockspace demand of the Katana Chain network.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Layer 2 execution and Layer 1 settlement fee extraction

- **Purpose**: The gas fees associated with transaction execution on Layer 2 and settlement on Layer 1 are calculated.
- **Logic**: Transaction receipts are parsed to extract gas usage and gas prices. Layer 2 execution fees are calculated by multiplying the gas used by the effective gas price. Layer 1 settlement fees are determined using either the direct Layer 1 fee or by multiplying Layer 1 gas used, Layer 1 gas price, and the Layer 1 fee scalar. Both fee components are normalized by decimal precision.
- **Key fields**: `gas_used`, `gas_price`, `l1_fee`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: Isthmus operator fee calculation

- **Purpose**: The additional operator fees charged for transaction processing are calculated.
- **Logic**: Operator fees are calculated by combining a constant operator fee with a scalar-adjusted fee. The scalar-adjusted fee is computed by multiplying the gas used by the operator fee scalar and dividing by a scaling factor of one million. The sum of the constant and scalar-adjusted fees is then normalized by decimal precision.
- **Key fields**: `operator_fee_constant`, `operator_fee_scalar`, `gas_used`

### Component C: USD conversion and revenue aggregation

- **Purpose**: All fee components are combined, converted to USD, and aggregated daily.
- **Logic**: Layer 2 execution fees, Layer 1 settlement fees, and operator fees are summed to calculate the total fees for Katana Chain. Because no portion of these fees is distributed to supply-side participants, 100% of the total fees is allocated to revenue. Daily native asset amounts are multiplied by end-of-day price feeds to convert the values to USD. Daily boundaries are defined using UTC timestamps.
- **Key fields**: `l2_gas_fee`, `l1_gas_fee`, `operator_fee`, `timestamp`

*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.

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

Revenue

Revenue

Chain breakdown