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

Scroll is an L2 smart contract platform for decentralized applications on Ethereum. Scroll was founded by Sandy Peng, Haichen Shen, and Ye Zhang and launched in 2023.

SCR tokenholders own and govern the protocol. Scroll's investors include Polychain, Qiming Venture Partners, etc.

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Scroll

# Scroll Earnings Methodology

## 1. Overview

Earnings measures the net value retained by Scroll after all expenses are subtracted from its revenue. Revenue is generated from transaction fees paid by users on the Scroll network, including both L1 security fees and L2 execution fees. Expenses include the cost of revenue, represented by the L1 settlement fees paid to Ethereum for data availability and batch posting, and operating expenses, represented by onchain token incentives. Earnings reflects the onchain profitability of the Layer 2 network.

## 2. Data sources

- **Blockchain events**: Native transaction data from Ethereum and Scroll, plus `Claimed` events from `TokenDistributor` contracts on Scroll
- **External data**: End-of-day price feeds for native gas assets and the Scroll asset

## 3. Step-by-step calculation

### Component A: Protocol revenue calculation

- **Purpose**: Capture the total fees paid by users to the Scroll network.
- **Logic**: User fees are extracted from Scroll transaction data. The total fee is calculated as the sum of the L2 execution fee (gas used multiplied by the effective gas price) and the L1 security fee (the overhead cost for posting data to Ethereum). Daily totals are aggregated and converted to USD using end-of-day price feeds for the native gas asset.

### Component B: Cost of revenue calculation

- **Purpose**: Capture the expenses incurred by the sequencer for settling data on Ethereum.
- **Logic**: Ethereum transactions sent to the Scroll sequencer address are identified. The cost for each transaction is calculated by summing the base gas fee (gas used multiplied by gas price) and the blob gas fee (blob gas used multiplied by blob gas price). These costs represent the protocol's primary expense for data availability and security on the L1.

### Component C: Token incentives tracking

- **Purpose**: Capture the value of protocol assets distributed as incentives.
- **Logic**: `Claimed` events are parsed from `TokenDistributor` contracts on Scroll. The claimed amounts are normalized by decimal precision and converted to USD using end-of-day price feeds for the Scroll asset. These distributions are classified as operating expenses.

### Component D: Final earnings aggregation

- **Purpose**: Determine the net profitability of the protocol.
- **Logic**: Expenses are calculated as the sum of settlement costs (Component B) and token incentives (Component C). Earnings are then calculated by subtracting these total expenses from the protocol revenue (Component A). All values are aggregated to a daily granularity with 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.

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