Validators process transactions and receive fees from users (supply-side fees).

Kusama is a security & interoperability platform for blockchains and applications. Kusama was founded by Gavin Wood and launched in 2019.

KSM holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue).

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Kusama

# Kusama Revenue Methodology

## 1. Overview

Kusama revenue represents the blockchain's share of transaction fees collected from network usage. The metric is calculated as 80% of all transaction fees paid on the Kusama network, converted to USD. This reflects Kusama's revenue model where the network retains a portion of fees paid by users for transaction processing, with the remaining portion going to validators and other network participants.

## 2. Data sources

The calculation relies on three primary data sources:

- **Kusama blockchain events**: Parsed `TransactionFeePaid` events from the Kusama blockchain containing fee amounts and tips paid by users for transaction processing
- **Token pricing data**: End-of-day price feeds from CoinGecko for KSM token to enable USD conversion
- **Token metadata**: KSM token configuration data including decimal precision (1e12) and symbol information needed for proper unit conversion

## 3. Step-by-step calculation

### Component A: Fee extraction
- **Purpose**: Extract and normalize all transaction fees paid on the Kusama network
- **Logic**: The system processes `TransactionFeePaid` events from Kusama blockchain events, extracting two fee components from each event's data array. The first component represents the base transaction fee, while the second represents the tip paid to validators. Both amounts are stored as raw blockchain values requiring decimal conversion. Raw amounts are divided by 1e12 to convert from the blockchain's native decimal precision to human-readable KSM amounts. Each unique transaction is identified by its `extrinsic_hash`, `block_number`, and `event_index` to prevent double-counting
- **Key fields**: `amount` (base transaction fee), `tip` (additional validator payment), `extrinsic_hash` (transaction identifier), `block_timestamp` (transaction timing)

### Component B: Daily aggregation and USD conversion
- **Purpose**: Aggregate all transaction fees by day and convert to USD values
- **Logic**: Transaction fees are combined by adding the base `amount` and `tip` for each transaction to get the total cost per transaction. These totals are then aggregated daily using timestamp truncation to the day boundary, summing all transaction fees that occurred within each 24-hour period. The daily KSM fee totals are converted to USD by multiplying against CoinGecko's end-of-day price feed for KSM tokens. This ensures consistent pricing across all transactions within a day
- **Key fields**: `fees` (total daily fees in KSM), `timestamp` (daily boundary), `chain` (kusama identifier), `token_symbol` (KSM), `coingecko_id` (kusama price feed identifier)

### Component C: Revenue calculation
- **Purpose**: Apply Kusama's revenue share to calculate actual blockchain revenue
- **Logic**: The system applies a fixed 80% multiplier to the total daily fees to calculate Kusama's revenue portion. This reflects the network's economic model where 80% of collected fees represent blockchain revenue, while the remaining 20% goes to other network participants like validators or treasury functions. The calculation uses a `safe_multiply` function to handle the percentage conversion
- **Key fields**: `revenue` (80% of total fees), `fee_cut` (0.8 multiplier constant)

### Final aggregation
- **Combining components**: The revenue calculation directly applies the 80% fee cut to the USD-converted daily fees without additional joining or complex aggregation
- **Currency conversion**: All amounts are converted to USD using CoinGecko's end-of-day price feeds for KSM, ensuring consistent daily pricing across all transactions
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, creating one revenue value per day representing all network activity within that 24-hour period
- **Final calculation**: Daily revenue equals the sum of all transaction fees (base fees plus tips) for that day, converted to USD, then multiplied by 0.8 to represent Kusama's 80% revenue share of collected fees

*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.

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Revenue

Revenue

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