Users connect a TON wallet and Telegram account to buy Telegram Stars, Premium and Ads, to trade collectible usernames and numbers in auctions and sales, and to withdraw creator rewards. Payments settle in TON.

Fragment is a free platform which facilitates the transaction of collectibles between users and the purchase of services from third parties, such as Telegram Premium and Telegram Ads. It supports direct sales and public auctions.

Fragment is a platform for Telegram users, content creators, bot developers and advertisers, built on the TON blockchain.

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Fragment

# Fragment Cost of revenue Methodology

## 1. Overview

Cost of revenue measures the expenses incurred by Fragment when distributing creator rewards and payouts to third-party participants. These expenses are primarily comprised of Telegram Stars withdrawals by bots and advertisement revenue-share payments distributed to channels. This metric is used to reflect the direct costs associated with incentivizing content creators and developers on the platform. Only on-chain TON flows are captured, representing the direct cost of revenue settled on-chain.

## 2. Data sources

- **Blockchain events**: Transaction messages from payout wallets, covering The Open Network
- **External data**: End-of-day price feeds for the TON asset

## 3. Step-by-step calculation

### Component A: Payout message extraction

- **Purpose**: Identify and extract on-chain creator rewards and payout transactions
- **Logic**: Transaction messages on The Open Network are filtered to isolate outgoing flows from designated payout wallets. Inbound messages are parsed where the sender matches designated payout wallets, representing outgoing flows from the protocol. Messages must be successful (not bounced), have a positive transfer value, and contain a transaction memo starting with 'Reward from Telegram '. To prevent double-counting, transfers to internal Fragment and Telegram wallets are excluded.
- **Key fields**: `source` (payout wallet address), `destination` (recipient address), `value` (amount in nanoton), `comment` (transaction memo)

### Component B: Normalization and USD conversion

- **Purpose**: Convert the extracted payout amounts into USD
- **Logic**: The extracted payout amounts, denominated in nanoton, are aggregated by day. The daily sums are normalized by decimal precision to convert the values into TON. These normalized amounts are then multiplied by the end-of-day price of the TON asset to determine the daily cost of revenue in USD.
- **Key fields**: `amount_nanoton` (raw payout value), `price_usd` (end-of-day asset price)

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

Expenses paid to third parties to deliver core service output.

Fragment

Cost of revenue

Cost of revenue

Competitive landscape