MegaETH Financials
From the perspective of the token holders, REV is the "top line" metric of a blockchain as it represents the value that users pay for transaction execution and the value that token holders are ultimately eligible to earn, net of expenses.
Network Revenue
Network Revenue for MegaETH consists solely of Real Economic Value (REV), which tracks blockchain value capture from real user activity. REV consists of in-protocol transaction fees paid by users on the L2, plus L1 posting fees passed through to Ethereum.
Expenses
MegaETH expenses include the following components:
- L2 Base Fee: Dynamically adjusted based on L2 network demand. Collected by the sequencer.
- L2 Priority Fee: Optional tip paid by users for faster transaction inclusion. Collected by the sequencer.
- L1 Settlement Fee: Covers the cost of settling and posting transactions to Ethereum L1 for security.
- Data Availability Cost: Paid to EigenDA to store transaction data.
MegaETH also provides a small L2 Subsidy that reduces the effective fees paid by users, partially offsetting L2 execution costs during the network's growth phase.
Gross Profit
Gross Profit = REV - Operator Payments. It measures the margin retained by the MegaETH network after covering transaction costs. A higher gross margin indicates the L2 is efficiently capturing value relative to its data and security costs.