Validators process transactions and receive fees from users (supply-side fees). DA costs for users are reflected in the transactions fees paid.

Celestia is a proof of stake blockchain optimized for data availability (DA). Celestia was founded by Mustafa Al-Bassam, etc. and launched in 2023.

TIA holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Celestia's investors include Polychain Capital, Placeholder, Coinbase Ventures, etc.

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Celestia

# Celestia Earnings Methodology

## 1. Overview

Celestia earnings represents the daily net income of the Celestia blockchain protocol, calculated as the difference between revenue and expenses. Revenue comes from the community tax portion of transaction fees (2% of total fees), while expenses consist of token incentives paid to validators through block rewards. This metric measures the protocol's profitability by subtracting the cost of network security incentives from the protocol's share of user fees.

## 2. Data sources

The calculation uses three primary raw data sources:

- **Celestia transaction records**: Individual transaction data including base fees and tips paid by users, with amounts denominated in utia (micro-TIA units)
- **Celestia block events**: Blockchain event logs containing coinbase events that record token minting for validator rewards, with amounts and token denominations stored in event attributes
- **End-of-day price feeds**: Token price data from CoinGecko API providing daily USD exchange rates for TIA token conversion

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculates protocol revenue from the community tax portion of transaction fees
- **Logic**: Extracts all successful Celestia transactions (excluding those with null fees), combines base transaction fees and tips, converts amounts from utia micro-units to full TIA units by dividing by 10^6, aggregates daily totals, then takes 2% of total fees representing the community tax rate according to Celestia parameters
- **Key fields**: `transaction_fee` (base fee), `transaction_tip` (additional tip), `block_timestamp` for daily grouping

### Component B: Expenses calculation  
- **Purpose**: Calculates token incentive expenses paid to validators as block rewards
- **Logic**: Processes coinbase events from Celestia block data, uses a JavaScript function to extract reward amounts from event attributes JSON, filters for utia token rewards specifically, converts amounts from utia micro-units to full TIA units by dividing by 10^6, aggregates daily totals of minted tokens as validator incentives
- **Key fields**: `event_type` (filtered to 'coinbase'), `event_attributes` (containing amount and token data), `block_timestamp` for daily grouping

### Final aggregation
- **Combining components**: Revenue and expenses are calculated independently then joined by date for the earnings calculation
- **Currency conversion**: Both revenue and expenses are converted to USD using end-of-day TIA token prices from CoinGecko price feeds
- **Time aggregation**: All data is aggregated to daily timestamps using timestamp truncation to day boundaries
- **Final calculation**: Daily earnings equals revenue minus expenses, with both values in USD. Missing dates are filled with zero values to maintain consistent 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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