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

Astar is a collective driving web3 adoption by connecting people through blockchain technology, business innovation, decentralized applications, and seamless digital experiences in the Polkadot ecosystem. Astar was founded by Sota Watanabe and launched in 2021.

ASTR tokenholders own and govern the protocol. Part of the transaction fees is burned (revenue). Astar’s investors include Binance, Polychain Capital, Crypto.com, etc.

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Astar

# Astar Earnings Methodology

## 1. Overview

The Astar earnings metric measures the daily net profitability of the Astar blockchain ecosystem by calculating the difference between revenue generated from transaction fees and expenses incurred through token incentives (block rewards). This metric answers the business question: "How much profit does the Astar network generate daily after accounting for token-based rewards paid to ecosystem participants?"

The calculation follows the standard formula: Earnings = Revenue - Expenses, where revenue consists of all transaction fees collected across both Layer 1 (native Astar) and Layer 2 (Astar EVM) operations, while expenses represent block rewards distributed through the dApp staking mechanism.

## 2. Data sources

The calculation relies on several key data sources from the Astar blockchain and external systems:

- **Astar blockchain events**: Parsed events from the Astar substrate-based blockchain, specifically from the `transactionPayment`, `ethereum`, and `balances` pallets
- **Transaction payment events**: `TransactionFeePaid` events containing fee and tip data for Layer 1 transactions
- **Balance events**: `Withdraw` and `Deposit` events from the ethereum pallet that capture Layer 2 EVM transaction fees
- **Minting events**: `Minted` events from the balances pallet representing block rewards distributed through inflation
- **Execution events**: `Executed` events from the ethereum pallet to identify EVM transaction signers
- **End-of-day price feeds**: Daily ASTAR token price data from CoinGecko for USD conversion
- **Token metadata**: ASTAR token decimal configuration for proper unit conversion

## 3. Step-by-step calculation

### Component A: Layer 1 fee extraction
- **Purpose**: Capture native Astar transaction fees and tips paid by users
- **Logic**: Filter Astar blockchain events to `transactionPayment` pallet `TransactionFeePaid` events. Extract `transaction_fee` and `transaction_tip` values from the event data array (positions 1 and 2). Sum these values to get the total fee per transaction. Convert from wei to ASTAR tokens by dividing by 10^18. Group by daily timestamps and extrinsic identifiers.
- **Key fields**: `transaction_fee`, `transaction_tip`, `extrinsic_id`, `timestamp`, `event_data`

### Component B: Layer 2 fee extraction  
- **Purpose**: Calculate net fees from Astar EVM (Layer 2) transactions by tracking balance changes
- **Logic**: Extract `Withdraw` events (positive fees) and `Deposit` events (negative refunds) from the balances pallet within the ethereum pallet context. Parse the withdrawal/deposit amounts from the event data. Match these events to their corresponding `Executed` events to identify the transaction signer. Filter to include only balance changes where the signer matches the extrinsic signer (eliminating internal transfers). Net the withdrawals against deposits per transaction, then convert from wei to ASTAR tokens by dividing by 10^18.
- **Key fields**: `signer_address`, `transaction_fee`, `event_method`, `extrinsic_id`

### Component C: Total revenue calculation
- **Purpose**: Aggregate all fee revenue from both Layer 1 and Layer 2 operations
- **Logic**: Combine the processed Layer 1 and Layer 2 fees by summing daily totals across both layers. Convert the total ASTAR token fees to USD using end-of-day price feeds from CoinGecko. Apply daily timestamp truncation to ensure proper aggregation boundaries.
- **Key fields**: `fees`, `chain_id`, `product_id`, `timestamp`

### Component D: Token incentives (expenses)
- **Purpose**: Calculate the cost of block rewards distributed through Astar's inflation mechanism
- **Logic**: Extract `Minted` events from the balances pallet, which represent newly created tokens distributed as block rewards to dApp staking participants (developers and stakers). Parse the minted amount from the event data and convert from micro units to ASTAR tokens by dividing by 10^18. Aggregate daily totals and convert to USD using end-of-day ASTAR prices. These minted tokens represent the network's expense for incentivizing ecosystem participation.
- **Key fields**: `amount`, `block_number`, `event_data`, `token_incentives`

### Final aggregation
- **Combining components**: The earnings calculation subtracts total daily expenses (token incentives in USD) from total daily revenue (transaction fees in USD) using the formula: earnings = revenue - expenses
- **Currency conversion**: All ASTAR token amounts are converted to USD using end-of-day price feeds from CoinGecko, applied consistently across both revenue and expense calculations
- **Time aggregation**: Daily boundaries are established using timestamp truncation to day level, ensuring all transactions and events within a 24-hour period are properly grouped
- **Final calculation**: For each day, sum all Layer 1 and Layer 2 fees in USD to get revenue, sum all block rewards in USD to get expenses, then subtract expenses from revenue to derive net earnings. Apply zero-filling for any missing days to maintain continuous time series data.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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