OP Mainnet batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

OP Mainnet is an L2 smart contract platform for decentralized applications on Ethereum. OP Mainnet was founded by Jinglan Wang, Karl Floersch & Kevin Ho and launched in 2021.

Optimism team & investors own and govern the protocol. Optimism’s investors include Paradigm, a16z, IDEO CoLab Ventures, etc.

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OP Mainnet

# OP Mainnet Cost of revenue Methodology

## 1. Overview

Cost of revenue for Optimism represents the total gas fees paid to settle Optimism's Layer 2 transactions on Ethereum mainnet. This metric captures Optimism's primary operational cost - the expense of maintaining security and finality by regularly submitting state commitments and transaction batches to Ethereum. The calculation accounts for Optimism's architectural evolution, handling both the original pre-Bedrock system (June 2021 - June 2023) and the current post-Bedrock system (June 2023 onwards) which changed how settlements are structured and identified.

## 2. Data sources

- **Ethereum transaction records**: Complete transaction data from Ethereum mainnet including gas usage, gas prices, sender/receiver addresses, and timestamps
- **Optimism v1 event logs**: Parsed `StateCommitmentChain_StateBatchAppended_event` and `CanonicalTransactionChain_SequencerBatchAppended_event` logs from Optimism's original smart contracts on Ethereum
- **End-of-day price feeds**: ETH to USD conversion rates for translating settlement costs from native ETH amounts to USD values
- **Token metadata**: WETH token reference data for standardized token addressing

## 3. Step-by-step calculation

### Component A: Pre-bedrock settlement identification
- **Purpose**: Identifies L1 settlement transactions from Optimism's original architecture (June 20, 2021 to June 6, 2023)
- **Logic**: Creates an allowlist of valid settlement transactions by extracting transaction hashes from two key Optimism v1 events. The `StateCommitmentChain_StateBatchAppended_event` captures state commitment submissions while `CanonicalTransactionChain_SequencerBatchAppended_event` captures transaction batch submissions. These events represent the two primary ways Optimism settled data to Ethereum before the Bedrock upgrade. Filters Ethereum transaction records to only include transactions whose hashes appear in this allowlist and fall within the pre-bedrock time window.
- **Key fields**: `transaction_hash` for matching, `block_timestamp` for time filtering, `receipt_gas_used` and `receipt_effective_gas_price` for cost calculation

### Component B: Post-bedrock settlement identification  
- **Purpose**: Identifies L1 settlement transactions from Optimism's current Bedrock architecture (after June 6, 2023)
- **Logic**: Uses direct address filtering on Ethereum transactions to identify settlements. Captures two types of settlement transactions: sequencer batch submissions (from sequencer address `0x6887246668a3b87f54deb3b94ba47a6f63f32985` to null address `0xff00000000000000000000000000000000000010`) and state root proposals (from state root proposer `0x473300df21d047806a082244b417f96b32f13a33` to L2 output oracle `0xdfe97868233d1aa22e815a266982f2cf17685a27`). This reflects the new settlement pattern introduced with the Bedrock upgrade where settlements are identified by specific system addresses rather than event parsing.
- **Key fields**: `to_address` and `from_address` for filtering, `block_timestamp` for time boundaries, `receipt_gas_used` and `receipt_effective_gas_price` for gas cost calculation

### Component C: Gas fee calculation
- **Purpose**: Converts raw gas consumption data into ETH-denominated settlement costs
- **Logic**: For each identified settlement transaction, multiplies `receipt_gas_used` by `receipt_effective_gas_price` to get the total gas cost in wei, then divides by 10^18 to convert from wei to ETH. This captures the actual cost Optimism paid for each settlement transaction on Ethereum mainnet.
- **Key fields**: `amount` field containing the calculated ETH cost per settlement

### Component D: Historical data combination
- **Purpose**: Merges pre-bedrock and post-bedrock settlement data into a unified dataset
- **Logic**: Unions the settlement transactions from both periods, ensuring consistent schema with standardized fields for timestamp, chain identifier, token address (using WETH as reference), and settlement amounts. Both datasets use the same gas fee calculation methodology for consistency.
- **Key fields**: `block_timestamp`, `chain`, `token_address`, `amount`

### Final aggregation
- **Combining components**: All settlement transactions are grouped by day using timestamp truncation to daily boundaries and summed to get total daily settlement costs
- **Currency conversion**: ETH-denominated daily settlement totals are converted to USD using end-of-day ETH/USD exchange rates
- **Time aggregation**: Daily settlement costs are aggregated with standard business metadata including market sector classification as "blockchains_l2" and business segment as "blockchain"
- **Final calculation**: The daily cost of revenue equals the sum of all L1 settlement gas fees for that day, converted to USD. Missing days are filled with zeros to maintain a continuous time series, and chain availability filtering ensures data quality standards are met.

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

Expenses paid to third parties to deliver core service output.

OP MainnetOP

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown