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

Kilt is digital identity solution powered by Polkadot Relay chain.

KILT holders own and govern the protocol.

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Kilt

# Kilt Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user on the KILT blockchain. This metric answers the business question: "How much revenue does each user generate on average?" The calculation divides total daily revenue by the number of distinct daily active users, providing insight into user monetization effectiveness and protocol economics.

## 2. Data sources

The ARPU calculation relies on these raw data sources:
- **KILT blockchain events**: Parsed `TransactionFeePaid` events containing transaction fee amounts and tips paid by users
- **KILT blockchain extrinsics**: Transaction records identifying unique users (transaction senders) performing on-chain activities  
- **External price feeds**: End-of-day KILT token price feeds from CoinGecko API for USD conversion
- **Chain metadata**: KILT protocol configuration including native token decimal places (15 decimals)

## 3. Step-by-step calculation

### Component A: Fee collection and processing
- **Purpose**: Extract and convert transaction fees from KILT blockchain into USD-denominated revenue
- **Logic**: Process `TransactionFeePaid` events from successful transactions, extracting base `amount` and `tip` values from event data. Convert native token amounts by dividing by 1e15 (KILT's decimal precision). Sum base amount and tip for total transaction cost. Aggregate fees daily using timestamp truncation to day boundaries.
- **Key fields**: `amount` (base transaction fee), `tip` (optional additional fee), `block_timestamp` (transaction timing), `extrinsic_hash` (transaction identifier)

### Component B: USD conversion
- **Purpose**: Convert native KILT token fees to USD values using market prices
- **Logic**: Join daily aggregated KILT fees with end-of-day price feeds from CoinGecko API. Handle potential token ID variations by attempting conversion with both 'kilt-protocol-2' and 'kilt-protocol' identifiers. Apply exchange rates to convert native token amounts to USD equivalents.
- **Key fields**: `fees` (native token amounts), `timestamp` (price date alignment), `chain_id` and `product_id` (dimensional identifiers)

### Component C: Daily active user counting
- **Purpose**: Count distinct users active each day on KILT blockchain
- **Logic**: Extract unique transaction senders from extrinsics data, identifying them as active users. Use timestamp truncation to group users by day. Implement HyperLogLog (HLL) algorithm for efficient distinct counting across multiple dimensional breakdowns including project-level, chain-level, user-type-level, and product-level aggregations.
- **Key fields**: `user_address` (unique user identifier from transaction sender), `block_timestamp` (activity timing), `chain` and `product_id` (dimensional categorization)

### Final aggregation
- **Combining components**: Join daily USD revenue totals with daily active user counts using timestamp alignment. Both components use day-level timestamp truncation ensuring proper temporal matching.
- **Currency conversion**: All revenue converted to USD using end-of-day CoinGecko exchange rates, with fallback token ID handling for price feed reliability
- **Time aggregation**: Daily boundaries established through timestamp truncation, ensuring consistent 24-hour periods across revenue and user metrics
- **Final calculation**: Divide total daily revenue (in USD) by total daily active users to produce average revenue per user. Apply zero-filling strategy for days with missing data to maintain time series continuity

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

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Average revenue per user (ARPU)

Average revenue per user (ARPU)

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