github

twitter

website

Exchanges (CEX)

# OKX Earnings Methodology

## 1. Overview

Earnings is defined as the net value retained by OKX's X Layer after all expenses are subtracted from total revenue. Revenue is generated from transaction fees paid by users on X Layer, which is composed of L2 execution fees and L1 data fees. Expenses are represented by the cost of revenue, which is comprised of L1 settlement fees paid to Ethereum for batch posting and data availability. Token incentives are also included in expenses but are currently set to zero. On-chain profitability is measured by this metric, which is determined by the relationship between fee collection and L1 settlement costs.

## 2. Data sources

- **Blockchain events**: Transaction data from X Layer and Ethereum, covering Ethereum and X Layer
- **External data**: End-of-day price feeds for ETH and OKB

## 3. Step-by-step calculation

### Component A: X Layer transaction fee collection

- **Purpose**: Calculate total transaction fees collected on X Layer as the basis for revenue
- **Logic**: Transaction data is parsed from X Layer. For each transaction, the L2 gas fee is calculated by multiplying the gas used by the gas price. The L1 fee is extracted directly or calculated by multiplying L1 gas used, L1 gas price, and the L1 fee scalar. Total fees are calculated as the sum of the L1 fee and L2 gas fee, normalized by decimal precision, and converted to USD using end-of-day price feeds for OKB. Revenue is set equal to total fees.

### Component B: L1 settlement fee tracking

- **Purpose**: Calculate the cost of settling transactions on Ethereum
- **Logic**: Transaction data is parsed from Ethereum to identify settlement transactions. Two distinct eras are captured: the Polygon CDK Validium era (where transactions are sent to the CDK rollup contract) and the OP Stack era (where transactions are sent from designated batcher wallets). For these transactions, the L1 settlement cost is calculated by summing the execution gas cost (gas used multiplied by gas price) and the blob gas cost (blob gas used multiplied by blob gas price). The resulting amounts are normalized by decimal precision and converted to USD using end-of-day price feeds for ETH. Cost of revenue is set equal to these L1 settlement fees.

### Component C: Expenses and earnings calculation

- **Purpose**: Calculate total expenses and net earnings for X Layer
- **Logic**: Total expenses are calculated as the sum of the cost of revenue (L1 settlement fees) and token incentives (which are set to zero). Earnings are calculated by subtracting total expenses from total revenue. Daily values are aggregated using UTC day boundaries.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

OKXOKB

Earnings

Earnings

Competitive landscape