# LayerZero V2 Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that LayerZero V2 retains after fees are paid by users for cross-chain messaging. For LayerZero V2, this metric is currently zero. All fees collected from users are distributed to supply-side participants who provide the necessary infrastructure for message verification and execution. Although LayerZero governance may activate a protocol fee switch in the future to capture a portion of these fees, no take rate is currently applied.

## 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 tracking

- **Purpose**: To determine the portion of transaction fees retained by the LayerZero protocol.
- **Logic**: Revenue is hardcoded to zero. This reflects that a protocol-level fee switch has not been activated. All fees paid for cross-chain messages are treated as supply-side fees and are allocated entirely to infrastructure operators, including Decentralized Verifier Networks (DVNs) and executors. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds for the respective native assets.

*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 v2

Revenue

Revenue

Chain breakdown