Financial breakdown for Base. Shout out Blockworks for the data. Onchain = transparency.

91% gross profit margin is eye watering.

L1 expenses (primarily Data Availability costs) are proportionally decreasing relative to revenue..

Also almost all the revenue comes from priority fees which means fundamental user adoption 👀

Priority fees only exist when users are willing to pay extra to "jump the line" and have their transactions processed faster:

- Users find genuine value
- … are competing a non-scarce product (L2s are commoditized)
- … have time-sensitive transactions they consider worth the premium