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 Expenses Methodology

## 1. Overview

The Linea expenses metric measures the total operating costs incurred by the Linea Layer 2 blockchain network. This metric combines two primary expense components: cost of revenue (representing L1 settlement fees paid to Ethereum) and token incentives (currently zero). The metric answers the business question: "What are Linea's total daily operating expenses?" The calculation aggregates L1 settlement costs paid by Linea's sequencer to secure transactions on Ethereum, providing insight into the network's operational overhead.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Linea transaction records**: Complete transaction data from the Linea L2 network including gas usage, gas prices, and transaction participants
- **Ethereum transaction records**: Complete transaction data from Ethereum L1, specifically filtering for transactions sent by Linea's sequencer address
- **End-of-day token price feeds**: USD price data for ETH to convert gas fee amounts from native tokens to USD values
- **Token metadata**: Token contract information including decimal precision and symbols for proper amount calculations

## 3. Step-by-step calculation

### Component A: L1 settlement cost tracking
- **Purpose**: Calculates the daily cost of settling Linea transactions on Ethereum L1
- **Logic**: Identifies all Ethereum transactions sent from Linea's sequencer address (`0x46d2f319fd42165d4318f099e143dea8124e9e3e`). For each transaction, calculates total gas costs including both regular gas fees and blob gas fees (EIP-4844). Regular gas cost equals `gas_used` multiplied by `gas_price`, while blob gas cost equals `blob_gas_used` multiplied by `blob_gas_price`. The total settlement amount is the sum of both gas types, divided by 1e18 to correct for ETH decimal precision. Transactions are aggregated daily by truncating timestamps to day boundaries.
- **Key fields**: `gas_used_amount` (gas consumed), `gas_price` (gas price in wei), `blob_gas_used_amount` (blob gas consumed), `blob_gas_price` (blob gas price in wei), `l1_settlement_amount` (total cost in ETH)

### Component B: Token incentives calculation  
- **Purpose**: Tracks token-based incentive expenses paid to users or validators
- **Logic**: Currently set to zero as Linea does not operate token incentive programs. The calculation uses the fee metric structure as a template, applying zero values across all time periods to maintain consistent schema and enable future incentive tracking.
- **Key fields**: `token_incentives` (always zero), `timestamp` (daily boundaries), `chain_id` (Linea identifier)

### Final aggregation
- **Combining components**: The two expense components are combined using a union all operation, creating a single dataset with both cost of revenue and token incentive records for each time period
- **Currency conversion**: All ETH amounts are converted to USD using end-of-day price feeds, with the conversion applied before final aggregation to ensure consistent currency reporting
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all transactions within a calendar day contributing to that day's expense total
- **Final calculation**: Total daily expenses equal the sum of L1 settlement costs (in USD) plus token incentives (currently zero), with the finalize_metric_expenses macro ensuring proper schema validation and zero-filling for any missing data periods

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

Total project operating and incentive expenses.

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Expenses

Expenses

Competitive landscape

Chain breakdown