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

Hedera is a decentralized enterprise-grade public network that uses proof-of-stake hashgraph consensus to offer low & fixed fees, 10k TPS, and instant transaction finality. Hedera was founded by Leemon Baird, Mance Harmon, etc. and launched in 2019.

HBAR holders own and govern the protocol. They currently take a cut of the total transaction and query fees paid by users (revenue). Hedera’s investors include BlockTower Capital, Continue Capital, Unanimous Capital, etc.

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Hedera

# Hedera Revenue Methodology

## 1. Overview

Hedera revenue represents the protocol's earnings from transaction fees after accounting for fees distributed to network validators and node operators. The metric calculates net protocol revenue by taking total transaction fees collected and subtracting the portion that goes to supply-side participants (validators/nodes). This provides insight into the protocol's fee retention and economic sustainability.

The calculation follows a simple formula: Revenue = Total Transaction Fees - Supply-Side Fees, where both components are converted to USD for standardized reporting.

## 2. Data sources

The calculation relies on three primary data sources:

- **Hedera transaction records**: Raw blockchain transaction data containing fee information, transaction hashes, block timestamps, and fee amounts charged in tinybars
- **Hedera HBAR transfer events**: Native token transfer records showing HBAR movements between accounts, including transfers to network validators and node operators
- **End-of-day token price feeds**: HBAR price data used for USD conversion of fee amounts

## 3. Step-by-step calculation

### Component A: Total transaction fees calculation
- **Purpose**: Aggregate all transaction fees collected by the Hedera protocol
- **Logic**: Extract transaction fee data from Hedera blockchain transaction records. Each transaction includes a `fee_charged` field denominated in tinybars (HBAR's smallest unit where 1 HBAR = 100,000,000 tinybars). Filter for transactions with non-null fee amounts, then aggregate fees by day. Convert tinybars to HBAR by dividing by 1e8
- **Key fields**: `fee_charged` (transaction fee in tinybars), `block_timestamp` (for daily aggregation), `transaction_hash` (unique identifier)

### Component B: Supply-side fees calculation  
- **Purpose**: Identify fees distributed to network validators and node operators
- **Logic**: Join Hedera transaction data with HBAR transfer events to find transfers paid to node operators as compensation. Filter for transfers where: the recipient account matches the `node` field from transactions, transfer amount is positive, transfer amount is less than the total transaction fee, and the recipient is the node operator. This isolates the portion of fees that goes to supply-side participants rather than the protocol
- **Key fields**: `transfer_amount` (HBAR transferred to nodes), `node` (node operator identifier), `account_address` (transfer recipient)

### Component C: USD conversion
- **Purpose**: Convert both fee components from HBAR to USD for standardized reporting  
- **Logic**: Apply end-of-day HBAR price feeds to convert native token amounts to USD values. Use the price from the same day as the transaction timestamp
- **Key fields**: Price conversion applied to aggregated daily fee amounts in HBAR

### Final aggregation
- **Combining components**: Calculate net protocol revenue by subtracting supply-side fees from total transaction fees: Revenue = Total Fees (USD) - Supply-Side Fees (USD)
- **Currency conversion**: All amounts converted to USD using end-of-day HBAR price feeds matched by transaction date
- **Time aggregation**: Daily aggregation using transaction block timestamp truncated to day boundaries
- **Final calculation**: The metric represents the net USD value of fees retained by the Hedera protocol after compensating network validators and node operators

*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.

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Revenue

Revenue

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