# X Layer Revenue Methodology

## 1. Overview

The portion of transaction fees retained by X Layer is represented by Revenue. Earnings generated from network execution and data availability services are reflected by this metric before operating expenses are deducted. On X Layer, all transaction fees paid by users are retained as protocol revenue, representing the economic value captured by the network. The financial sustainability and monetization capacity of the layer 2 network are assessed using this metric.

## 2. Data sources

- **Blockchain events**: Transaction execution data from X Layer, covering X Layer
- **External data**: End-of-day price feeds for the native gas asset (OKB)

## 3. Step-by-step calculation

### Component A: Gas fee extraction

- **Purpose**: Calculate the total gas fees paid for transactions on X Layer, including both L2 execution fees and L1 data fees
- **Logic**: Transaction execution data is parsed to extract gas parameters. The L2 execution fee is calculated by multiplying the gas used by the gas price, and the resulting amount is normalized by decimal precision. The L1 data fee is determined by utilizing the L1 fee field, or fallback calculations using L1 gas used, L1 gas price, and the L1 fee scalar, with the resulting amount normalized by decimal precision. The total fee in the native gas asset (OKB) is calculated as the sum of the L1 data fee and the L2 execution fee.
- **Key fields**: `gas_used`, `gas_price`, `l1_fee`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: USD conversion

- **Purpose**: Normalize the calculated gas fees to USD
- **Logic**: The total fee amounts denominated in the native gas asset (OKB) are multiplied by the end-of-day price feeds for OKB.
- **Key fields**: `fees`, `price_usd`

### Component C: Revenue aggregation

- **Purpose**: Aggregate the daily USD-denominated fees to represent protocol revenue
- **Logic**: Because 100% of the transaction fees are retained by the protocol, revenue is set equal to the total fees. The daily revenue values are aggregated by timestamp and product ID, with daily boundaries set according to UTC midnight.
- **Key fields**: `revenue`, `timestamp`

*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.

X Layer

Revenue

Revenue

Chain breakdown