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Blockchains (L2)

peaq

# peaq Revenue Methodology

## 1. Overview

The Peaq revenue metric measures the protocol's net revenue by calculating total transaction fees minus supply-side fees paid to validators and delegators. This metric answers the business question: "How much revenue does the Peaq protocol retain after paying network validators?" The calculation follows the standard protocol revenue formula: Revenue = Total Fees - Supply-side Fees, where supply-side fees represent the 40% of transaction fees allocated to validators and delegators according to Peaq's tokenomics.

## 2. Data sources

The revenue calculation relies on the following raw data sources:
- **Peaq blockchain events**: Parsed `TransactionFeesDistributed` events from the `blockReward` pallet that record fee distribution amounts
- **Blockchain transaction data**: Peaq extrinsic hashes, block numbers, and timestamps for fee events
- **External price data**: End-of-day PEAQ token price feeds from CoinGecko API
- **Tokenomics documentation**: Peaq's documented fee allocation structure specifying 40% allocation to validators and delegators

## 3. Step-by-step calculation

### Component A: Fee data extraction
- **Purpose**: Extract and normalize transaction fee amounts from Peaq blockchain events
- **Logic**: Query Peaq blockchain event logs filtering for `TransactionFeesDistributed` events within the `blockReward` pallet. Each event contains fee amounts stored in JSON format within the event data. Extract the base fee amount from the first element of the event data array and convert from Peaq's native decimal format by dividing by 1e18 to get standard decimal amounts.
- **Key fields**: `block_timestamp`, `extrinsic_hash`, `event_index`, `amount` (converted from native format)

### Component B: Daily fee aggregation and USD conversion
- **Purpose**: Aggregate fees by day and convert to USD values
- **Logic**: Group the extracted fee amounts by day using timestamp truncation to daily boundaries. Sum all fee amounts within each day to get total daily fees in native PEAQ tokens. Join with end-of-day PEAQ token price data from CoinGecko to convert the native token amounts to USD values using the corresponding daily price.
- **Key fields**: `timestamp` (daily), `amount` (aggregated), `fees` (USD-converted)

### Component C: Supply-side fee calculation
- **Purpose**: Calculate the portion of fees paid to network validators and delegators
- **Logic**: Apply Peaq's documented tokenomics rule that allocates 40% of transaction fees to validators and delegators. Multiply the total daily fees (already in USD) by 0.4 to determine the supply-side fee amount that represents the network's cost for processing transactions.
- **Key fields**: `fees_supply_side` (40% of total fees)

### Final aggregation
- **Combining components**: Combine total fees as positive revenue contribution with supply-side fees as negative revenue contribution using a union operation. Total fees contribute positively to protocol revenue while supply-side fees are subtracted (represented as negative values in the union).
- **Currency conversion**: All amounts are converted to USD using end-of-day PEAQ token prices from CoinGecko, applied after daily aggregation of native token amounts.
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all fees within a calendar day summed together.
- **Final calculation**: Protocol revenue equals the sum of total fees minus supply-side fees, or mathematically: Revenue = Total Fees - (Total Fees × 0.4) = Total Fees × 0.6, representing the 60% of fees retained by the protocol after paying validators and delegators.

*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.

peaqPEAQ

Revenue

Revenue

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