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).

governance

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etherscan

website

Infrastructure

Kleros

# Kleros Revenue Methodology

## 1. Overview

Kleros revenue represents the protocol-level revenue generated by the Kleros decentralized court system. Currently, this metric is set to 0 across all time periods, indicating that while the protocol collects arbitration fees, these fees are not considered protocol revenue (likely because they are distributed to jurors and stakers rather than retained by the protocol).

## 2. Data sources

- **Blockchain events**: Parsed `KlerosLiquid_TokenAndETHShift` events from Ethereum and Gnosis chains
- **External data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimal specifications for amount normalization
- **Fee data**: Processed arbitration fee calculations from the Kleros court system

## 3. Step-by-step calculation

### Component A: Arbitration fee extraction
- **Purpose**: Capture all arbitration fees collected by the Kleros decentralized court system
- **Logic**: Extract fee transfer events from `KlerosLiquid_TokenAndETHShift` events on Ethereum and Gnosis chains. Parse both ETH amounts from the `ETHAmount` field and PNK token amounts from the `tokenAmount` field. Filter out removed events and zero-amount PNK transfers. Classify all fees under the "Decentralized Court" business line within the infrastructure market sector
- **Key fields**: `block_timestamp` for timing, `ETHAmount` and `tokenAmount` for fee amounts, `address` for court contract, `transaction_hash` and `log_index` for event identification

### Component B: Fee aggregation and conversion
- **Purpose**: Aggregate fees by day and convert to USD for standardized reporting
- **Logic**: Group fee events by daily timestamps, chain, and token type. Apply USD conversion using end-of-day price feeds and correct for token decimals to get proper USD amounts. Handle both ETH (using wrapped ETH address `0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) and PNK token (address `0x93ed3fbe21207ec2e8f2d3c3de6e058cb73bc04d`) conversions
- **Key fields**: `timestamp` truncated to daily boundaries, `fees` in USD after conversion, `chain_id`, `token_address`

### Component C: Revenue determination
- **Purpose**: Determine what portion of collected fees constitutes protocol revenue
- **Logic**: Despite fees being collected and processed, explicitly set all revenue values to 0. This indicates that arbitration fees in Kleros are not retained as protocol revenue but are instead distributed to participants (jurors, stakers) in the decentralized court system
- **Key fields**: `revenue` field set to 0 for all records, while maintaining the same time series structure as the underlying fees

### Final aggregation
- **Combining components**: Use the fee data structure and metadata (timestamps, chains, product classifications) but replace all fee amounts with 0 for the revenue calculation
- **Currency conversion**: USD conversion is performed on the underlying fees for consistency, though revenue amounts remain 0
- **Time aggregation**: Daily time boundaries are maintained to provide complete time series data
- **Final calculation**: Revenue = 0 for all time periods, indicating that while Kleros collects arbitration fees, these do not constitute protocol-level revenue due to the decentralized nature of fee distribution to court participants

*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.

KlerosPNK

Revenue

Revenue

Competitive landscape

Chain breakdown