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Blockchains (L2)

peaq

# peaq Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on the Peaq blockchain network. This metric answers the business question: "How much revenue does each user generate on average?" The calculation divides daily protocol revenue by the count of daily active users, providing insight into user monetization efficiency. Peaq operates as a Layer-2 blockchain supporting both substrate-native transactions and Ethereum-compatible EVM transactions.

## 2. Data sources

The ARPU calculation relies on several key data sources:
- **Peaq blockchain events**: Specifically `TransactionFeesDistributed` events from the `blockReward` pallet that record transaction fee distributions on the Peaq substrate blockchain
- **Peaq transaction data**: Substrate extrinsics representing native Peaq transactions with transaction sender information
- **Peaq EVM events**: Ethereum-compatible transaction events, particularly `Executed` events from the `ethereum` pallet for EVM transactions on Peaq
- **External price data**: End-of-day price feeds from CoinGecko for PEAQ token USD conversion
- **Tokenomics configuration**: Peaq's fee distribution rules specifying that 40% of fees go to validators and delegators

## 3. Step-by-step calculation

### Component A: Transaction fee collection
- **Purpose**: Extract and process transaction fees paid on the Peaq network
- **Logic**: The system identifies `TransactionFeesDistributed` events from the `blockReward` pallet in Peaq blockchain events. These events contain fee amounts in the first element of the event data array. Fee amounts are converted from wei units (1e18) to standard token units by dividing by the conversion factor. All fees are aggregated daily by summing individual transaction fees within each day boundary.
- **Key fields**: `block_timestamp` for daily grouping, `event_data` containing the base fee amount, `extrinsic_hash` for transaction identification

### Component B: USD conversion
- **Purpose**: Convert PEAQ token fees to USD values for standardized revenue measurement  
- **Logic**: Daily fee totals in PEAQ tokens are joined with end-of-day PEAQ price data from CoinGecko price feeds. The conversion multiplies the token amount by the corresponding daily price to produce USD-denominated fees. This ensures consistent currency measurement across different time periods.
- **Key fields**: `amount` representing daily fee totals, `price` from CoinGecko feeds, `timestamp` for joining daily price data

### Component C: Revenue allocation
- **Purpose**: Calculate protocol revenue after accounting for supply-side fee distribution
- **Logic**: Per Peaq tokenomics documentation, 40% of transaction fees are distributed to validators and delegators as supply-side rewards. The protocol revenue calculation starts with total USD fees, calculates the supply-side portion as 40% of total fees, then subtracts this from total fees. The resulting protocol revenue represents 60% of total collected fees that accrue to the protocol.
- **Key fields**: `fees` representing total daily fees, `fees_supply_side` representing the 40% validator/delegator allocation, `revenue` as the net protocol revenue

### Component D: User activity tracking
- **Purpose**: Count unique daily active users across both substrate and EVM transaction types
- **Logic**: User addresses are collected from two sources: substrate extrinsics where the `id` field represents transaction senders, and EVM events where executed transactions contain sender addresses in the event data. Both address types are combined and deduplicated daily using HyperLogLog aggregation for efficient distinct counting. This captures users transacting through either the native Peaq substrate interface or the Ethereum-compatible EVM interface.
- **Key fields**: `user_address` from both extrinsics and EVM events, `block_timestamp` for daily boundaries, `user_dau` as the deduplicated daily user count

### Final aggregation
- **Combining components**: The ARPU calculation uses a macro that joins the daily revenue values with daily active user counts on matching timestamps. Both metrics are aggregated to the same daily grain to ensure proper alignment.
- **Currency conversion**: All revenue components are converted to USD using end-of-day CoinGecko price feeds before the ARPU calculation, ensuring consistent currency units.
- **Time aggregation**: Both revenue and user metrics use daily time boundaries, with timestamps truncated to day granularity for proper alignment.
- **Final calculation**: ARPU is calculated by dividing the daily protocol revenue (in USD) by the daily active user count. Days with zero active users are handled through zero-filling strategies to maintain complete time series data. The result represents the average USD revenue generated per user per day on the Peaq network.

*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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