# Flow Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees that is retained by the Flow network to offset validator staking rewards. Under the Flow inflation offset economic model, validators receive fixed rewards each epoch, and collected transaction fees are used to reduce the net inflation burden on asset holders. Revenue is captured from Flow, where fees serve as a protocol take to offset reward issuance, while revenue for Flow EVM is currently recognized as zero as all fees are distributed to validators as supply-side compensation.

## 2. Data sources

- **Blockchain events**: Native transaction records and gas consumption data, covering Flow and Flow EVM
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: Flow fee extraction

- **Purpose**: Capture the total fee value from native transactions on Flow
- **Logic**: Fee amounts are extracted directly from native transaction records for all processed blocks. These values represent the total costs paid by transaction payers to the network.
- **Key fields**: `fee_amount` (transaction cost), `block_timestamp` (timing)

### Component B: Flow EVM fee extraction

- **Purpose**: Calculate gas fees generated by transactions on Flow EVM
- **Logic**: Transaction gas fees are calculated by multiplying the gas used by the gas price for every transaction record. These amounts are normalized by decimal precision to represent the native asset value.
- **Key fields**: `receipt_gas_used` (consumption), `gas_price` (unit cost)

### Component C: Protocol revenue attribution

- **Purpose**: Apply the revenue recognition logic based on the protocol's economic model
- **Logic**: For Flow, 100% of the collected fees are classified as revenue because they are used by the protocol to offset validator inflation. For Flow EVM, revenue is hardcoded to zero because all collected fees are distributed to infrastructure operators as supply-side fees with no protocol take-rate currently active.
- **Key fields**: `product_id` (product identification), `fees` (input values)

### Component D: USD conversion and aggregation

- **Purpose**: Normalize revenue values to USD and aggregate by time
- **Logic**: Native revenue values are multiplied by end-of-day price feeds for the native asset. Results are aggregated to daily granularity using UTC day boundaries.
- **Key fields**: `timestamp` (daily alignment), `price` (valuation)

*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.

Revenue

Blockchains (L1)

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

Flow is a smart contract platform for decentralized applications (a blockchain). Flow was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and launched in 2019.

FLOW holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Flow’s investors include a16z, Coatue, Coinfund, Fabric Ventures, etc.

Flow

Revenue

Revenue

Chain breakdown