Decouples execution, sequencing, and verification into specialized roles to maximize hardware utilization. Settles to Ethereum as an L2. Run via a single sequencer model with stateless validation. Uses an EVM-compatible execution environment.

MegaETH is an Ethereum Layer 2 blockchain that targets 100,000+ transactions per second and sub-10ms block times. Its architecture separates sequencers, executors, and verifiers to maximize hardware efficiency and uses an in-memory state structure called SALT (Small Authentication Large Trie) to eliminate disk I/O during execution.

Founded by Shuyao Kong and Namik Muduroglu. MegaETH Labs leads protocol development; the network is intended to be operated by independent sequencers, executors, and verifiers.

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Blockchains (L2)

MegaETH

# MegaETH Cost of revenue Methodology

## 1. Overview

Cost of revenue measures the expenses MegaETH incurs when outsourcing data availability and settlement to external infrastructure providers. These expenses are primarily driven by L1 settlement fees paid to Ethereum for posting batch data to EigenDA and the L1 anchor. This metric is essential for evaluating the operational efficiency and net profitability of the Layer 2 network.

## 2. Data sources

- **Blockchain events**: Transaction execution and receipt data from MegaETH transactions, covering MegaETH
- **External data**: End-of-day price feeds for the native gas asset (WETH)

## 3. Step-by-step calculation

### Component A: L1 fee extraction

- **Purpose**: Extract the L1 settlement fees from raw transaction receipts
- **Logic**: Raw transaction data is parsed to extract the L1 fee (`l1_fee`) from transaction receipts. These fees represent the cost paid to Ethereum for data availability and settlement. The extracted fees are aggregated daily.
- **Key fields**: `l1_fee` (L1 fee amount), `block_timestamp` (transaction timing)

### Component B: Normalization and USD conversion

- **Purpose**: Convert the extracted L1 fees into USD
- **Logic**: Aggregated L1 fee amounts are normalized by decimal precision. The normalized amounts are then multiplied by the end-of-day price of WETH on Ethereum to determine the USD value.
- **Key fields**: `l1_fee_amount` (normalized L1 fee), `price_usd` (WETH price)

### Component C: Final aggregation and zero-filling

- **Purpose**: Finalize the cost of revenue metric for reporting
- **Logic**: The USD-denominated cost of revenue is mapped to the MegaETH chain identifier. Missing days in the time series are filled with zeros to ensure a continuous daily dataset.
- **Key fields**: `cost_of_revenue` (final USD value), `chain_id` (recasted to 'megaeth')

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

Expenses paid to third parties to deliver core service output.

MegaETHMEGA

Cost of revenue

Cost of revenue

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