zkSync Era batches users' transactions and submits them to Ethereum together with a zero-knowledge proof, paying a share of the transaction fees to Ethereum validators (expense).

zkSync Era is an L2 smart contract platform for decentralized applications on Ethereum. zkSync Era was founded by Matter Labs and launched in 2023.

Matter Labs team owns and governs the protocol. Matter Labs' investors include a16z, Lightspeed Venture Partners, Blockchain Capital, etc.

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zkSync Era

# zkSync Era Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total protocol fees that are distributed to supply-side participants such as liquidity providers, validators, or other network contributors. For zkSync Era, this metric is explicitly set to zero, indicating that all transaction fees are retained by the protocol rather than being distributed to external supply-side participants. This reflects zkSync Era's fee distribution model as a Layer 2 scaling solution.

## 2. Data sources

The calculation relies on the following raw data sources:

- **zkSync Era transaction records**: Complete transaction data from the zkSync Era blockchain, including gas usage metrics, effective gas prices, transaction hashes, block information, and participant addresses
- **End-of-day price feeds**: Daily ETH price data used for USD conversion of fee amounts
- **Token metadata**: WETH contract information and token symbol data for proper identification and decimal handling

## 3. Step-by-step calculation

### Component A: Transaction gas fee extraction
- **Purpose**: Extract individual transaction gas fees from raw zkSync Era blockchain data
- **Logic**: Process all zkSync Era transactions to identify gas usage patterns. Each transaction record contains `receipt_gas_used` (the actual gas consumed) and `receipt_effective_gas_price` (the price per unit of gas in wei). The effective gas price is converted from wei to ETH units by dividing by 10^18. The system uses the WETH contract address `0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2` and ETH symbol since zkSync Era uses ETH for transaction fees
- **Key fields**: `gas_used` (gas consumption), `effective_gas_price` (price per gas unit in ETH), `block_timestamp` (transaction timing), `token_address` (WETH address), `transaction_hash` (unique identifier)

### Component B: Daily fee aggregation
- **Purpose**: Aggregate individual transaction fees into daily totals
- **Logic**: Group all transactions by day using timestamp truncation to daily boundaries. For each day and token combination, calculate the total fee amount by multiplying `gas_used` by `effective_gas_price` for each transaction and summing across all transactions. This produces daily aggregate fee amounts denominated in ETH
- **Key fields**: `timestamp` (daily boundary), `token_address` (WETH), `fee_amount` (daily total fees in ETH)

### Component C: USD conversion and metadata assignment
- **Purpose**: Convert daily ETH fee amounts to USD and assign proper protocol metadata
- **Logic**: Convert daily ETH fee amounts to USD using end-of-day ETH price feeds. Assign market sector as 'blockchains_l2' and business segment as 'blockchain' to categorize zkSync Era as a Layer 2 blockchain solution. Initially use 'ethereum' as the chain identifier since zkSync Era is an Ethereum Layer 2, then recast to 'zksyncera' for proper protocol identification
- **Key fields**: `fees` (daily fees in USD), `chain_id` (protocol identifier), `market_sector_id` (categorization), `timestamp_grain` (daily aggregation level)

### Final aggregation
- **Combining components**: The supply-side fees calculation takes the complete daily fee dataset and explicitly sets the `fees_supply_side` field to 0 for all records
- **Currency conversion**: All fee amounts are converted to USD using end-of-day ETH exchange rates applied to the daily ETH fee totals
- **Time aggregation**: Data is aggregated at daily boundaries with timestamp truncation ensuring consistent daily periods
- **Final calculation**: Supply-side fees are set to zero (0) for all time periods, indicating that zkSync Era does not distribute any portion of transaction fees to supply-side participants. All collected fees are retained by the protocol itself rather than being shared with external network contributors like validators or liquidity providers

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

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

zkSync EraZK

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown