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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of protocol fees distributed to suppliers such as validators, liquidity providers, or other network participants who contribute resources to the protocol. For Scroll, this metric is consistently set to 0, indicating that Scroll does not implement a fee-sharing mechanism with suppliers. Instead, all protocol revenue is retained by the protocol itself, and L1 settlement costs are treated as operational expenses rather than supplier compensation.

## 2. Data sources

The methodology relies on the following data sources to establish the baseline for supply-side fee calculations:

- **Ethereum transaction data**: Transaction records from the Ethereum blockchain, specifically focusing on transactions sent to Scroll's sequencer address for L1 settlement operations
- **Gas fee data**: Detailed gas usage and pricing information including both regular gas fees and blob gas fees (EIP-4844) paid during L1 settlement transactions
- **End-of-day token price feeds**: Token pricing data used by the finalization process for USD conversion (though not actively used since fees are set to 0)
- **Token metadata**: Token contract information and decimal precision data used for proper unit conversions

## 3. Step-by-step calculation

### Component A: L1 settlement cost tracking
- **Purpose**: Identifies and quantifies the costs Scroll pays to Ethereum for L1 data availability and settlement, providing context for potential supply-side fee calculations
- **Logic**: The system filters Ethereum transaction data to identify transactions sent to Scroll's sequencer address (`0xa13baf47339d63b743e7da8741db5456dac1e556`). For each settlement transaction, it calculates the total gas costs by combining regular gas fees (gas used amount multiplied by gas price) and blob gas fees (blob gas used amount multiplied by blob gas price). These costs are converted from wei to ETH by dividing by 10^18 to achieve proper decimal precision
- **Key fields**: `block_timestamp` for temporal tracking, `transaction_hash` for unique identification, `gas_price` and `blob_gas_price` for fee calculation, `gas_used_amount` and `blob_gas_used_amount` for usage quantities, and `l1_settlement_amount` for the final cost in ETH

### Component B: Daily aggregation of settlement costs
- **Purpose**: Aggregates L1 settlement costs into daily totals to provide a baseline understanding of protocol operational expenses
- **Logic**: The system groups settlement transactions by day using timestamp truncation and sums the L1 settlement amounts. This creates daily cost totals that represent Scroll's operational expenses for L1 data availability and settlement. The aggregation includes proper handling of incremental loading to efficiently process new data while maintaining historical accuracy
- **Key fields**: `timestamp` truncated to day boundaries, `cost_of_revenue` representing total daily L1 settlement costs, `chain_id` set to ethereum for the L1 settlement chain, and various metadata fields for classification

### Final aggregation
- **Combining components**: The final model takes the daily settlement cost data but explicitly sets the `fees_supply_side` field to 0 for all time periods, reflecting Scroll's business model decision not to share fees with suppliers
- **Currency conversion**: While the underlying infrastructure supports USD conversion through end-of-day price feeds, no conversion is performed since supply-side fees are set to 0
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation, with proper handling of time zones and incremental updates
- **Final calculation**: The final supply-side fees value is consistently 0 across all time periods, indicating that 100% of protocol fees are retained by Scroll rather than distributed to suppliers, validators, or other network participants. The finalization process ensures proper schema compliance, validates all identifiers, and fills any data gaps with zeros to maintain complete time series data.

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

Portion of fees distributed to service providers or supply-side participants.

ScrollSCR

Supply-side fees

Supply-side fees

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