Linea batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Linea is an L2 smart contract platform for decentralized applications on Ethereum. Linea was founded by the ConsenSys team and launched in 2023.

ConsenSys team owns and governs the protocol. ConsenSys's investors include ParaFi Capital, Microsoft, Coinbase Ventures, etc.

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Blockchains (L2)

Linea

# Linea Earnings Methodology

## 1. Overview

Linea earnings represents the net profit generated by the Linea Layer 2 blockchain, calculated as total revenue minus total expenses. This metric answers the business question: "How much profit does Linea generate after accounting for operational costs?" The calculation follows a standard profit formula where revenue comes from transaction fees collected from users, and expenses include the costs of settling transactions on Ethereum Layer 1 plus any token incentives distributed.

## 2. Data sources

The calculation relies on several key data sources:

- **Linea blockchain transaction records**: Complete transaction data from the Linea Layer 2 blockchain including gas usage, gas prices, sender/receiver addresses, and transaction timestamps
- **Ethereum blockchain transaction records**: Ethereum Layer 1 transaction data, specifically filtered for transactions sent by Linea's sequencer address (`0x46d2f319fd42165d4318f099e143dea8124e9e3e`) which represent settlement costs
- **End-of-day token price feeds**: Historical ETH/USD price data used to convert all ETH-denominated amounts to USD values
- **Token metadata**: Token contract information including symbols and decimal places for ETH on both Linea (`0xe5d7c2a44ffddf6b295a15c148167daaaf5cf34f`) and Ethereum (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`)

## 3. Step-by-step calculation

### Component A: Revenue calculation (L2 gas fees)
- **Purpose**: Calculate total daily revenue from transaction fees collected on Linea
- **Logic**: Extract all Linea transaction records and calculate gas fees paid by users. For each transaction, multiply `gas_used` by `gas_price` and divide by 10^18 to convert from wei to ETH. Sum all transaction fees by day to get daily revenue totals. Convert ETH amounts to USD using end-of-day price feeds. Apply gap-filling logic to ensure continuous daily time series.
- **Key fields**: `gas_used` (gas consumed per transaction), `gas_price` (price per unit of gas in wei), `block_timestamp` (transaction timestamp), `transaction_hash` (unique transaction identifier)

### Component B: L1 settlement costs (cost of revenue)  
- **Purpose**: Calculate daily costs paid by Linea to settle transactions on Ethereum Layer 1
- **Logic**: Filter Ethereum transaction records to only include transactions where the sender address equals Linea's sequencer address (`0x46d2f319fd42165d4318f099e143dea8124e9e3e`). These represent batch settlements of Linea transactions to Ethereum. For each settlement transaction, calculate total gas cost including both regular gas fees and blob gas fees: (`gas_used` * `gas_price`) + (`blob_gas_used` * `blob_gas_price`). Convert wei amounts to ETH by dividing by 10^18. Aggregate daily settlement costs and convert to USD using end-of-day price feeds.
- **Key fields**: `from_address` (transaction sender), `receipt_gas_used` (gas consumed), `receipt_effective_gas_price` (gas price), `receipt_blob_gas_used` (blob gas consumed), `receipt_blob_gas_price` (blob gas price)

### Component C: Token incentives
- **Purpose**: Account for any token incentives or rewards distributed by Linea
- **Logic**: Set token incentives to zero for all time periods, as Linea does not currently operate a token incentive program. This component is structured to easily accommodate future incentive programs if implemented.
- **Key fields**: `token_incentives` (always zero)

### Component D: Total expenses calculation
- **Purpose**: Combine all expense categories into total daily expenses  
- **Logic**: Sum L1 settlement costs and token incentives to calculate total daily expenses. Since token incentives are zero, total expenses equal L1 settlement costs. Apply consistent time aggregation and gap-filling logic.
- **Key fields**: `cost_of_revenue` (L1 settlement costs), `token_incentives` (token rewards), `expenses` (combined total)

### Final aggregation
- **Combining components**: Join revenue and expense components by date to ensure matching time periods. Revenue comes from the gas fees metric, expenses come from the combined expenses metric.
- **Currency conversion**: All ETH amounts converted to USD using end-of-day price feeds through the standardized conversion macro. No decimal corrections are applied as gas amounts are already in wei units.
- **Time aggregation**: All data aggregated to daily boundaries using day truncation of block timestamps. Missing days filled with zeros to ensure continuous time series.
- **Final calculation**: Daily earnings calculated as daily revenue minus daily expenses (Earnings = Revenue - Expenses). Apply schema validation and chain availability filtering to ensure data quality and appropriate time bounds.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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