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Blockchains (L2)

Rootstock

# Rootstock Earnings Methodology

## 1. Overview

Earnings measures the net value retained by Rootstock after subtracting all expenses and token incentives from protocol revenue. For Rootstock, this represents the portion of transaction fees allocated to the RSK Foundation and the fee smoothing pool after miners are compensated. This metric reflects the on-chain profitability of the network and is denominated in USD.

## 2. Data sources

- **Blockchain events**: Transaction data from the Rootstock chain
- **External data**: End-of-day price feeds for the native asset (RBTC)

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Calculate the total gross fees generated by network activity
- **Logic**: Transaction data is parsed from the Rootstock chain. Fees for each transaction are calculated by multiplying the gas used by the gas price. Because Rootstock operates as a pre-EIP-1559 network, fees are not split into base and priority components.
- **Key fields**: `gas_used` and `gas_price` from transaction records

### Component B: Revenue and supply-side fee allocation

- **Purpose**: Distribute total fees between infrastructure providers (miners) and the protocol
- **Logic**: Fee distribution is governed by the Reward Manager Smart Contract (REMASC) logic. Supply-side fees are calculated as 80% of total fees, representing the portion paid to miners. Protocol revenue is calculated as the remaining 20% of total fees, representing the combined 10% allocation to the RSK Foundation and 10% to the smoothing pool.

### Component C: Expense and incentive tracking

- **Purpose**: Identify on-chain costs and token-based subsidies
- **Logic**: Expenses are currently set to zero. This reflects the absence of on-chain reported operating expenses and the fact that token incentives are hardcoded to zero within the protocol’s current data models.

### Component D: Final aggregation and USD conversion

- **Purpose**: Determine net earnings and normalize values to USD
- **Logic**: Earnings are calculated as protocol revenue minus expenses. All values are normalized by decimal precision and multiplied by end-of-day price feeds for the native asset (RBTC). Data is aggregated to daily granularity 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.

RootstockRIF

Earnings

Earnings

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