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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for Linea represent the portion of transaction fees that are paid to network operators (validators, sequencers, or other infrastructure providers) for processing transactions. However, for Linea specifically, this metric is explicitly set to zero as a design decision, regardless of the underlying L1 settlement costs incurred by the protocol.

## 2. Data sources

- **Ethereum blockchain transaction records**: Transaction data from Ethereum mainnet including gas prices, gas usage, blob gas prices, and blob gas usage
- **End-of-day token price feeds**: USD pricing data for ETH token conversions  
- **Token metadata**: ETH/WETH token information including contract addresses and symbol mappings

## 3. Step-by-step calculation

### Component A: L1 settlement cost tracking
- **Purpose**: Identifies and calculates the actual costs incurred by Linea for settling transactions on Ethereum L1
- **Logic**: Filters Ethereum transaction records to find transactions sent from Linea's sequencer address `0x46d2f319fd42165d4318f099e143dea8124e9e3e`. For each settlement transaction, calculates the total gas cost by multiplying `gas_used_amount` by `gas_price` and adding any blob gas costs from `blob_gas_used_amount` multiplied by `blob_gas_price`. Converts the final amount from wei to ETH by dividing by 10^18. These transactions represent the actual settlement costs that Linea pays to Ethereum for batch processing
- **Key fields**: `block_timestamp` for timing, `gas_price` and `blob_gas_price` for cost rates, `gas_used_amount` and `blob_gas_used_amount` for usage quantities, `l1_settlement_amount` for the calculated ETH cost

### Component B: Daily aggregation  
- **Purpose**: Aggregates settlement costs by day and prepares the data structure for metrics processing
- **Logic**: Groups settlement transactions by day using timestamp truncation and sums the `l1_settlement_amount` values. Stores this aggregated data as `cost_of_revenue` representing the total daily settlement costs incurred by Linea. Adds required metadata fields including chain identifier, market sector, and business segment classifications
- **Key fields**: `timestamp` truncated to day boundaries, `cost_of_revenue` as the aggregated daily settlement costs, classification fields for proper categorization

### Final aggregation
- **Combining components**: The final metric explicitly overrides the supply-side fees calculation by setting `fees_supply_side` to 0, regardless of the calculated settlement costs from previous components
- **Currency conversion**: USD conversion is handled by the finalize metric macro using end-of-day price feeds
- **Time aggregation**: Daily boundaries are maintained with gap-filling using zeros for missing dates
- **Final calculation**: Supply-side fees are set to exactly 0 for all time periods, representing Linea's decision not to allocate settlement costs as supply-side fees in their tokenomics model

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

Portion of fees distributed to service providers or supply-side participants.

LineaLINEA

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown