# LayerZero V1 Expenses Methodology

## 1. Overview

Expenses measures the total cost LayerZero V1 incurs to operate its business, including infrastructure costs, contributor incentives, and service provider fees. For this protocol, all verifiable on-chain infrastructure costs are classified as supply-side fees rather than operating expenses. Consequently, the Expenses metric for LayerZero V1 is set to zero.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

### Component A: Expense categorization

- **Purpose**: Establish the accounting logic for protocol-level operating costs.
- **Logic**: Expenses are hardcoded to zero. All infrastructure costs, including fees paid to Decentralized Verifier Networks (DVNs) and message executors, are classified as supply-side fees paid directly by users to infrastructure operators. No additional on-chain data is currently identified as a protocol-level operating expense for LayerZero V1.

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

Total project operating and incentive expenses.

Expenses

Interoperability

LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

LayerZero v1

Expenses

Expenses

Chain breakdown