A Revenue Model for Based Rollups
Duration: 00:24:55
Speaker: Conor McMenamin
Type: Talk
Expertise: Beginner
Event: Devcon
Date: Nov 2024
We outline the costs that a based rollup has, followed by the paths it has to revenue generation, revenue capture and finally revenue redistribution. We demonstrate that based rollup costs are front-loaded and non-negligible. Based rollups must pay for ZK-provers, app- and user-onboarding, R&D, etc, as well as L1 fees. We consider several continuous and once-off revenue models, and compare the pros and cons of each according to several key properties that based rollups are expected to have.