Network REV
Real Economic Value is a standardized metric that tracks blockchain value accrual generated by user activity. REV consists of both in-protocol transaction fees and out-of-protocol tips that users pay for transaction execution, so it measures the monetary demand to transact onchain.
In the case of Arbitrum, there are no out-of-protocol tips. All REV is generated by in-protocol transaction fees, of which there are two types.
- L1 Fee: Covers the cost of submitting L2 transactions to Ethereum mainnet L1. It fluctuates based on Ethereum mainnet's network congestion.
- L2 Base Fee: The minimum fee required for a transaction to be included in a block, dependent on the Arbitrum's network congestion.
- Timeboost Fee: MEV searchers bid for priority transaction inclusion in an second-bid auction. The Arbitrum DAO currently receives 97% of the fees.