# Kilt Chain Revenue Methodology

## 1. Overview

Revenue measures the total value retained by Kilt Chain from transaction fees and user-submitted tips. This metric reflects the protocol's gross earnings from providing identity and credentialing services before the deduction of operating expenses. On Kilt Chain, 100% of the collected transaction fees are classified as protocol revenue.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Kilt Chain system contracts, covering Kilt Chain
- **External data**: End-of-day price feeds for KILT assets

## 3. Step-by-step calculation

### Component A: Fee and tip extraction

- **Purpose**: To identify and capture all value paid by users for transaction execution on Kilt Chain.
- **Logic**: Successful `TransactionFeePaid` events are parsed from the Kilt Chain events registry. The base transaction fee is extracted from the second element of the event data, while the optional user-submitted tip is extracted from the third element. These two values are summed for every transaction to determine the total fee paid per extrinsic.
- **Key fields**: `event_data`, `event_method`, `success`

### Component B: USD conversion and normalization

- **Purpose**: To convert native fee amounts into a standardized USD value for reporting.
- **Logic**: Raw fee and tip amounts are normalized by a decimal precision of 15. The resulting values are multiplied by end-of-day price feeds for the native KILT asset. Daily totals are calculated based on UTC day boundaries.
- **Key fields**: `block_timestamp`, `amount`, `tip`

### Component C: Final revenue aggregation

- **Purpose**: To calculate the final protocol-level revenue metric.
- **Logic**: Total fees (including tips) are aggregated by day and product ID. As the protocol retains the entirety of these collected fees, the revenue metric is set equal to the total fee value. A forward-filling strategy is applied to ensure data continuity across daily intervals.
- **Key fields**: `timestamp`, `fees`, `revenue`

*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)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Kilt Chain

Archived

Revenue

Revenue

Chain breakdown