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

Cosmos Hub is an interoperability & security platform for blockchains and applications. Cosmos was founded by Ethan Buchman & Jae Kwon and launched in 2019.

ATOM holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Cosmos’s investors include Paradigm, IOSG Ventures, 1confirmation, etc.

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Cosmos Hub

# Cosmos Hub Revenue Methodology

## 1. Overview

The Cosmos revenue metric measures the net protocol-side revenue earned by the Cosmos Hub after validator rewards are distributed. It represents the portion of total fees that flows to the protocol treasury rather than to validators and delegators. The calculation combines transaction fees from regular Cosmos Hub operations with fees from the Application-Enabled Zone (AEZ) program, where other blockchain networks pay to use Cosmos Hub validators for security services.

## 2. Data sources

- **Cosmos Hub transaction records**: Raw transaction data containing fee amounts paid by users for transaction execution
- **Cosmos Hub message events**: Blockchain event logs containing transfer events, specifically those directed to the AEZ fee collection address
- **Token metadata**: Token decimal precision information for proper amount normalization across different token denominations
- **End-of-day token price feeds**: CoinGecko price data for converting token amounts to USD values
- **Hardcoded token definitions**: Mapping of Cosmos token denominations to CoinGecko identifiers for AEZ tokens including ATOM, ELYS, STRD, NTRN, and various staked token variants

## 3. Step-by-step calculation

### Component A: Regular transaction fees
- **Purpose**: Calculates fees from standard Cosmos Hub transactions paid by users
- **Logic**: Extracts `transaction_fee` amounts from Cosmos Hub transaction records. All fees are denominated in `uatom` (micro-ATOM) and normalized by dividing by 10^6 to convert to ATOM units. Daily aggregation sums all transaction fees for each day.
- **Key fields**: `transaction_fee` (raw fee amount), `block_timestamp` (for daily grouping)

### Component B: AEZ fees  
- **Purpose**: Captures fees paid by other blockchain networks using Cosmos Hub validators through the Application-Enabled Zone program
- **Logic**: Parses transfer events from Cosmos Hub message events where the recipient address is `cosmos1ap0mh6xzfn8943urr84q6ae7zfnar48am2erhd` (the AEZ fee collection address). Uses regular expressions to extract numeric amounts and token denominations from the `amount` field in event attributes. Normalizes amounts using token-specific decimal precision from token metadata. Maps token denominations to CoinGecko identifiers using hardcoded definitions. Daily aggregation sums fees by token type.
- **Key fields**: `event_attributes.amount` (contains both amount and token denom), `event_attributes.recipient` (filtered to AEZ address), `token_address` (extracted token denomination)

### Component C: Total fees calculation
- **Purpose**: Combines regular transaction fees and AEZ fees into a unified fee total
- **Logic**: Unions the normalized daily fee amounts from both regular transactions and AEZ transfers. Converts all fee amounts to USD using end-of-day CoinGecko price feeds matched by token CoinGecko identifiers. Groups by day, chain, and other dimensional attributes.
- **Key fields**: `fees` (daily fee total in token units), `coingecko_id` (for price lookup), `timestamp` (daily boundary)

### Component D: Supply-side fees calculation
- **Purpose**: Determines the portion of total fees that goes to validators and delegators rather than the protocol
- **Logic**: Applies time-based percentage cuts to total fees based on governance decisions. Uses 98% of total fees before December 20, 2022, then 90% between December 20, 2022 and May 2, 2025, then reverts to 98% after May 2, 2025. These percentages represent the validator/delegator reward portion.
- **Key fields**: `fees` (from total fees), `timestamp` (for time-based logic), `fees_supply_side` (calculated percentage)

### Final aggregation
- **Combining components**: Revenue is calculated as total fees minus supply-side fees, creating a net protocol revenue figure
- **Currency conversion**: All amounts are converted to USD using end-of-day CoinGecko price feeds matched by token CoinGecko identifiers
- **Time aggregation**: Daily boundaries are established using timestamp truncation to day level
- **Final calculation**: Net revenue equals total fees (regular transaction fees plus AEZ fees converted to USD) minus supply-side fees (total fees multiplied by time-based percentage cuts), representing the protocol's retained revenue after validator rewards distribution

*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.

Cosmos HubATOM

Revenue

Revenue

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