Jurors receive arbitration fees for reviewing evidence and voting coherently on disputes (supply-side fees).

Kleros is a third party arbitration and dispute resolution system built on Ethereum and Gnosis. Kleros was founded by Federico Ast, Clémenet Lesaege and Nicolas Wagner, and was launched in 2019.

PNK tokenholders own and govern the protocol. They do not currently take a cut of the total fees taken by coherent jurors (revenue).

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Kleros

# Kleros Fees Methodology

## 1. Overview

Kleros fees measures the total arbitration fees collected by the Kleros decentralized court system, converted to USD and aggregated daily. This metric captures revenue generated from dispute resolution services provided by the Kleros protocol across Ethereum and Gnosis chains. The calculation extracts fee payments from blockchain events, handles both ETH and PNK token denominations, and converts everything to USD for standardized reporting.

## 2. Data sources

The methodology relies on the following raw data sources:

- **Blockchain events**: Parsed `KlerosLiquid_TokenAndETHShift` events from Kleros v1 smart contracts on Ethereum and Gnosis chains, which record arbitration fee payments
- **Token data**: Contract addresses and metadata for WETH (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2) and PNK (0x93ed3fbe21207ec2e8f2d3c3de6e058cb73bc04d) tokens
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal place correction

## 3. Step-by-step calculation

### Component A: Fee extraction from blockchain events
- **Purpose**: Extract arbitration fee amounts from Kleros court events across both supported chains
- **Logic**: The calculation processes `KlerosLiquid_TokenAndETHShift` events from Kleros v1 contracts on Ethereum and Gnosis chains. For each event, it extracts two types of fee payments: ETH amounts from the `ETHAmount` field and PNK token amounts from the `tokenAmount` field. The system filters out any removed or invalid events and excludes PNK amounts that are zero or negative. Each fee payment is classified with business metadata including 'Decentralized Court' as the business line, 'infrastructure' as the market sector, and 'other' as the business segment.
- **Key fields**: Event data includes `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, contract `address` for source identification, `ETHAmount` for ETH-denominated fees, and `tokenAmount` for PNK-denominated fees

### Component B: Token address mapping and standardization  
- **Purpose**: Map extracted fee amounts to standardized token contracts and apply business classifications
- **Logic**: The system maps ETH fees to the WETH contract address (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2) and PNK fees to the PNK token contract address (0x93ed3fbe21207ec2e8f2d3c3de6e058cb73bc04d). Each fee record is tagged with the protocol version ('v1'), chain identifier ('ethereum' for both Ethereum mainnet and Gnosis), and account names ('ETH' for WETH fees, 'PNK' for PNK token fees). The mapping ensures consistent token identification across different fee denominations while preserving the original chain context.
- **Key fields**: Mapped data includes standardized `token_address` for price lookups, `account_name` for token identification, `chain` for blockchain context, and `amount` for the raw token quantity

### Component C: USD conversion and decimal correction
- **Purpose**: Convert raw token amounts to properly formatted USD values using current market prices
- **Logic**: The system applies decimal correction based on each token's metadata to convert raw blockchain amounts to human-readable quantities. ETH amounts are adjusted from wei (18 decimals) while PNK amounts use their specific decimal configuration. After decimal correction, the system converts each amount to USD using end-of-day price feeds that correspond to the transaction date. This ensures consistent USD valuation across different tokens and time periods.
- **Key fields**: Converted data includes decimal-corrected `amount` values and calculated `fees_usd` amounts based on market prices

### Final aggregation
- **Combining components**: All USD-converted fees are aggregated by truncating timestamps to daily boundaries using the `timestamp_trunc` function, then grouping by date, chain, and token address to sum total daily fees per token
- **Currency conversion**: USD conversion uses end-of-day price feeds matched to transaction dates, with decimal correction applied before price multiplication to ensure accurate valuations
- **Time aggregation**: Timestamps are truncated to day-level granularity, and fees are summed across all transactions within each day for each chain-token combination
- **Final calculation**: The final metric represents the total USD value of arbitration fees collected daily by the Kleros protocol, with zero-fill applied to ensure continuous time series data and chain availability filters applied to limit results to supported blockchain networks

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

Total value users pay to use a protocol (gross fees, user-paid fees).

KlerosPNK

Fees

Fees

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