Validators process transactions and receive fees from users (supply-side fees).

Algorand is a smart contract platform for decentralized applications (a blockchain). Algorand was founded by Silvio Micali and launched in 2018.

ALGO holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Algorand's investors include Union Square Ventures, Multicoin Capital, Pillar, etc.

github

twitter

discord

etherscan

website

Blockchains (L1)

Algorand

# Algorand Revenue Methodology

## 1. Overview

Revenue is measured as the portion of transaction fees retained by the Algorand protocol. This metric represents the total earnings generated from network activity before the deduction of any operating expenses. On Algorand, revenue is derived directly from the transaction fees paid by users to execute operations on the blockchain, as 100% of these fees are captured by the protocol.

## 2. Data sources

- **Blockchain events**: Transaction data including the `fee` field from the Algorand blockchain
- **External data**: End-of-day price feeds for the native ALGO asset

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Capture the raw transaction costs paid by users in the network's native unit.
- **Logic**: Individual transaction records are parsed from the blockchain. The `fee` field is extracted from every transaction where a fee is present. These values are then aggregated to determine the total daily volume of fees denominated in microAlgos.
- **Key fields**: `fee` and `block_timestamp`.

### Component B: Native asset normalization

- **Purpose**: Convert fees from the base unit to the standard asset denomination.
- **Logic**: Aggregated fee amounts are normalized by decimal precision. Specifically, values are divided by 1,000,000 to convert the data from microAlgos to ALGO.
- **Key fields**: `total_fees_micro_algo`.

### Component C: USD conversion and revenue mapping

- **Purpose**: Calculate the final revenue value in USD based on the protocol's take rate.
- **Logic**: Normalized native fee amounts are multiplied by end-of-day asset prices. Since the Algorand protocol does not distribute a portion of transaction fees to supply-side participants, the take rate is 100%. Consequently, the total Fees metric is mapped directly to Revenue. All values are aggregated using UTC day boundaries.

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

AlgorandALGO

Revenue

Revenue

Competitive landscape