# Injective EVM Revenue Methodology

## 1. Overview

Revenue is measured as the portion of transaction fees retained by the protocol through the burning of base fees on Injective EVM. In accordance with the EIP-1559 gas model, transaction fees are bifurcated into a base fee and a priority fee. While priority fees are distributed to validators as supply-side fees, base fees are permanently removed from circulation, representing the primary revenue mechanism for the protocol. This metric reflects the value captured by the project before the distribution of incentives or operating expenses.

## 2. Data sources

- **Blockchain events**: Transaction and block data from Injective EVM
- **External data**: End-of-day price feeds for the native INJ asset

## 3. Step-by-step calculation

### Component A: Gas fee data collection

- **Purpose**: Retrieve raw gas usage and pricing data required for fee calculations.
- **Logic**: Transaction data is parsed to extract the amount of gas used and the effective gas price for every transaction. These records are joined with block data to obtain the specific base fee per gas for the corresponding block in which the transaction was included.
- **Key fields**: `gas_used`, `effective_gas_price`, and `base_fee_per_gas`.

### Component B: EIP-1559 fee decomposition

- **Purpose**: Distribute total fees into protocol revenue and supply-side components.
- **Logic**: The base fee is calculated by multiplying the gas used by the base fee per gas. The priority fee is derived by subtracting the base fee per gas from the effective gas price and multiplying the result by the gas used. Protocol revenue is specifically attributed to the total base fees collected, which are designated for burning.
- **Key fields**: `base_fee` and `priority_fee`.

### Component C: Normalization and USD conversion

- **Purpose**: Standardize revenue values into a common currency for analysis.
- **Logic**: Calculated revenue amounts are normalized by decimal precision. These native asset values are multiplied by end-of-day price feeds for the INJ asset to determine the USD value. Daily totals are aggregated based on UTC day boundaries.
- **Key fields**: `block_timestamp` and `price`.

*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 EVM

Revenue

Revenue

Chain breakdown