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 Expenses Methodology

## 1. Overview

Expenses for MegaETH is calculated as the sum of token incentives distributed to users and the cost of revenue paid for L1 data availability and settlement. Token incentives are comprised of MEGA emissions distributed via staking contracts. Cost of revenue is represented by the L1 settlement fees paid to Ethereum for posting batch data to EigenDA and the L1 anchor. These components are aggregated to measure the total operational costs incurred by the network.

## 2. Data sources

- **Blockchain events**: `RewardsClaimed` and `LockedStakingRewardsClaimed` events from `MegaStaking` contracts, and transaction-level L1 fee data from MegaETH transactions, covering MegaETH
- **External data**: End-of-day price feeds for native gas assets and the MEGA asset, and asset metadata from the tokens registry

## 3. Step-by-step calculation

### Component A: Token incentives extraction

- **Purpose**: Capture MEGA emissions distributed to users.
- **Logic**: `RewardsClaimed` and `LockedStakingRewardsClaimed` events are parsed from `MegaStaking` contracts. The reward amount and token address are extracted from each event. Transactions are filtered to isolate the MEGA asset using its contract address (`0x28b7e77f82b25b95953825f1e3ea0e36c1c29861`). The extracted amounts are aggregated daily.
- **Key fields**: `amount`, `token_address`, `block_timestamp`

### Component B: Cost of revenue extraction

- **Purpose**: Capture L1 settlement fees paid to Ethereum.
- **Logic**: Transaction-level data is parsed to extract the L1 fee paid for posting batch data to EigenDA and the L1 anchor. The L1 fee amount is aggregated daily. The gas asset is mapped to the Ethereum WETH contract address to resolve the correct price feed.
- **Key fields**: `l1_fee`, `block_timestamp`

### Component C: USD conversion and decimal normalization

- **Purpose**: Normalize asset amounts and convert them to USD.
- **Logic**: For token incentives, raw amounts are normalized by decimal precision using asset metadata from the tokens registry and multiplied by end-of-day prices. For cost of revenue, the L1 fee amounts are converted to USD using end-of-day price feeds for the native gas asset.

### Component D: Final expenses aggregation

- **Purpose**: Combine token incentives and cost of revenue into total expenses.
- **Logic**: The USD-denominated values for token incentives and cost of revenue are summed together on a daily basis. Missing days are zero-filled to ensure a continuous time series.

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

Total project operating and incentive expenses.

MegaETHMEGA

Expenses

Expenses

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