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Berachain

# Berachain Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per daily active user on the Berachain network. This metric answers the business question: "How much revenue does each user generate for the protocol on average each day?" The calculation divides daily protocol revenue by the number of daily active users, where protocol revenue represents the portion of transaction fees retained by the protocol after excluding validator rewards.

## 2. Data sources

The ARPU calculation relies on the following raw data sources:

- **Berachain transaction records**: Complete transaction data including sender addresses, gas usage, gas prices, priority fees, and timestamps for all transactions on the Berachain network
- **Berachain block data**: Block-level information including base fees per gas (for EIP-1559 calculations) and block timestamps to support gas fee calculations
- **End-of-day token price feeds**: USD price data for the BERA token used to convert gas fees from native token amounts to USD values for standardized revenue reporting

## 3. Step-by-step calculation

### Component A: Gas fee calculation
- **Purpose**: Calculate total gas fees paid by users and separate the portion that goes to validators versus the protocol
- **Logic**: For each transaction, calculate the total gas fee as `gas_used` multiplied by `gas_price`, then convert from wei to BERA tokens by dividing by 1e18. For supply-side fees (validator rewards), use the `priority_fee_amount` when available (EIP-1559 transactions), or calculate as the difference between total fee and base fee for legacy transactions. Aggregate all calculations to daily totals by truncating transaction timestamps to day boundaries.
- **Key fields**: `gas_used`, `gas_price`, `priority_fee_per_gas`, `base_fee_per_gas`, `block_timestamp`

### Component B: User identification and counting
- **Purpose**: Count distinct daily active users on the Berachain network
- **Logic**: Identify all unique transaction senders (`from_address`) for each day by truncating transaction timestamps to daily boundaries. Use HyperLogLog sketches for efficient distinct counting, which allows aggregation across multiple dimensions while maintaining accuracy for large user sets. Users are classified as "Transaction sender" type and associated with the "blockchains_l1" market sector.
- **Key fields**: `from_address`, `block_timestamp`, `user_type`

### Component C: Revenue calculation
- **Purpose**: Calculate net protocol revenue by subtracting validator rewards from total fees collected
- **Logic**: Start with total gas fees collected from all transactions, then subtract supply-side fees that are paid to validators. This produces the net revenue retained by the protocol. Convert all fee amounts to USD using end-of-day BERA token price feeds. Aggregate to daily totals for revenue reporting.
- **Key fields**: `fee_amount`, `priority_fee_amount`, `base_fee_amount`

### Component D: User aggregation with HyperLogLog
- **Purpose**: Efficiently aggregate distinct user counts across multiple dimensional breakdowns
- **Logic**: Create HyperLogLog sketches for daily user counts and merge them across different grouping dimensions including project-level, chain-level, user-type-level, and product-level aggregations. Extract final distinct counts from merged HLL sketches to produce accurate daily active user totals.
- **Key fields**: `user_dau`, `timestamp`, `chain`, `user_type`, `product_id`

### Final aggregation
- **Combining components**: The ARPU calculation uses a macro that joins daily revenue totals with daily active user counts by matching on timestamp and relevant dimensional keys (chain, product, etc.)
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day price feeds for the BERA token, ensuring consistent currency representation across the calculation
- **Time aggregation**: Both revenue and user metrics are aggregated to daily boundaries using timestamp truncation, ensuring alignment between numerator and denominator in the ARPU calculation
- **Final calculation**: ARPU is calculated as Daily Protocol Revenue (in USD) divided by Daily Active Users count, producing an average revenue per user metric expressed in USD per user per day

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

BerachainBERA

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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