# LayerZero V1 Revenue Methodology

## 1. Overview

Revenue measures the portion of cross-chain messaging fees that are retained by the LayerZero protocol. For LayerZero V1, this metric identifies the project's earnings after all fees are distributed to supply-side participants, including Decentralized Verifier Network (DVN) operators and message executors. Revenue is currently zero as the protocol fee switch has not been activated by governance.

## 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: Protocol revenue allocation

- **Purpose**: To determine the portion of fees retained by the LayerZero protocol
- **Logic**: Revenue is hardcoded to zero across all supported chains. Although user fees are collected to compensate infrastructure providers for message verification and execution, no take rate is currently applied at the protocol level. A protocol fee switch exists within the smart contracts but remains inactive, resulting in 100% of collected fees being classified as supply-side fees.

*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

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

Revenue

Revenue

Chain breakdown