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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MegaETH

# MegaETH Revenue Methodology

## 1. Overview

Revenue is defined as the portion of transaction fees retained by the MegaETH protocol. Because the sequencer is operated at cost and no payouts are distributed to validators or sequencers, 100% of the collected transaction fees are retained as protocol revenue. This metric is utilized to evaluate the economic sustainability and fee generation capacity of the MegaETH network.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Gas fee extraction

- **Purpose**: To calculate the total gas fees paid for transaction execution on the network.
- **Logic**: Transaction data is parsed to extract gas used, gas price, and L1 fee details. The L2 execution fee is calculated by multiplying gas used by the gas price, and the L1 settlement fee is extracted directly from the L1 fee field. Both fee components are normalized by decimal precision and summed to determine the total transaction fees.
- **Key fields**: `gas_used`, `gas_price`, and `l1_fee`

### Component B: USD conversion

- **Purpose**: To normalize the calculated transaction fees into USD.
- **Logic**: The total transaction fees, denominated in the native gas asset (ETH), are multiplied by the end-of-day price of the asset. Daily granularity is applied using UTC day boundaries.
- **Key fields**: `fees` and `price_usd`

### Component C: Supply-side fee deduction and revenue calculation

- **Purpose**: To determine the final protocol revenue after deducting supply-side fees.
- **Logic**: Supply-side fees are set to zero because the sequencer operates at cost and no payouts are distributed to validators or sequencers. Protocol revenue is calculated by subtracting the supply-side fees (zero) from the total transaction fees, resulting in 100% of the transaction fees being retained as revenue.
- **Key fields**: `fees`, `fees_supply_side`, and `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

MegaETHMEGA

Revenue

Revenue

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