# Injective Cosmos Revenue Methodology

## 1. Overview

Revenue measures the value retained by the protocol through the Injective Cosmos burn auction mechanism. Unlike standard blockchain models where revenue is derived from a portion of transaction fees, Injective Cosmos revenue is generated by aggregating exchange fees from decentralized applications (dApps) within the ecosystem. These fees are auctioned to users in exchange for the native INJ asset, which is subsequently destroyed. This metric represents the total USD value of the assets successfully bid and burned during these periodic auctions.

## 2. Data sources

- **Blockchain events**: `burn` events parsed from block event logs, covering Injective Cosmos
- **External data**: End-of-day price feeds for the native INJ asset

## 3. Step-by-step calculation

### Component A: Burn auction event extraction

- **Purpose**: Identify and extract the value of native assets destroyed via the protocol's auction mechanism
- **Logic**: `burn` events are filtered from the block event logs. Only events where the `burner` attribute matches the designated auction contract address (`inj1j4yzhgjm00ch3h0p9kel7g8sp6g045qf32pzlj`) are included. The value of the burned assets is extracted from the `amount` attribute within the event data.
- **Key fields**: `event_type`, `event_attributes` (specifically `burner` and `amount`)

### Component B: Normalization and USD conversion

- **Purpose**: Convert raw event data into a standardized USD valuation
- **Logic**: The extracted auction amounts are normalized by decimal precision. These values are then multiplied by the end-of-day price of the native INJ asset.
- **Key fields**: `amount` (from event attributes), end-of-day asset prices

### Component C: Daily aggregation

- **Purpose**: Consolidate burn data into a daily time series
- **Logic**: All converted burn values are summed at a daily granularity. Data is grouped by the UTC day corresponding to the block timestamp of the `burn` events to provide a continuous measure of protocol revenue.
- **Key fields**: `block_timestamp`, normalized USD value

*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 transactions fees (supply-side fees).

Injective is a smart contract platform for decentralized finance applications (a blockchain) and an orderbook exchange protocol. Injective was founded by Eric Chen, Albert Chon etc. and launched in 2020. Note that this dashboard only tracks Injective's blockchain business.

INJ holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue) via Burn Auctions. Injective's investors include Binance, Jump Crypto, Mark Cuban, etc.

Injective Cosmos

Revenue

Revenue

Chain breakdown