Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Pendulum is a decentralized blockchain for cross-border payments and traditional finance infrastructure powered by Polkadot Relay chain.

PEN holders own and govern the protocol. Pendulum is a subsidiary of SatoshiPay. SatoshiPay's investors include Blue Star Capital, KR1 plc, Stellar Development Foundation, etc.

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Blockchains (L2)

Pendulum

# Pendulum Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Pendulum blockchain. This metric is calculated by dividing total daily revenue by the number of daily active users, providing insight into the economic efficiency and user monetization of the Pendulum network. The calculation combines transaction fee data with user activity metrics to produce a standardized daily ARPU value in USD.

## 2. Data sources

The ARPU calculation relies on three primary data sources:

- **Pendulum blockchain event logs**: Specifically `TransactionFeePaid` events that contain transaction fee amounts and tip values paid by users for transaction execution
- **Pendulum extrinsic records**: Transaction-level data containing user addresses (`id` field) of transaction senders, used to identify unique daily active users
- **External price feeds**: End-of-day price feeds from CoinGecko for the Pendulum Chain token (`pendulum-chain` identifier) to convert native token fees to USD values

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract and process raw transaction fees from Pendulum blockchain events
- **Logic**: Parse `TransactionFeePaid` events from Pendulum blockchain logs, extracting fee amounts and tip values from the event data JSON structure. Apply decimal adjustment by dividing by 1e12 to convert from the blockchain's native decimal representation to standard token units. Sum both the base transaction fee (`amount`) and additional tip (`tip`) paid by users
- **Key fields**: `block_timestamp` for daily aggregation, `amount` for base transaction fees, `tip` for additional payments, `event_method` filtered to 'TransactionFeePaid'

### Component B: Daily fee aggregation and USD conversion  
- **Purpose**: Aggregate daily fees and convert to USD values
- **Logic**: Group transaction fees by day using timestamp truncation, summing total fees (amount + tip) for each calendar day. Apply USD conversion using end-of-day CoinGecko price feeds for the Pendulum Chain token, multiplying native token amounts by the corresponding USD price for each day
- **Key fields**: `timestamp` truncated to day boundaries, `chain_id` set to 'pendulum', `product_id` set to 'Pendulum Substrate', `fees` as the aggregated daily fee total

### Component C: Daily active user counting
- **Purpose**: Count distinct daily active users from transaction activity
- **Logic**: Extract unique user addresses from Pendulum extrinsic records, identifying transaction senders through the `id` field. Apply daily timestamp truncation and count distinct user addresses for each calendar day. Use HyperLogLog (HLL) data structure for efficient distinct counting, enabling scalable aggregation across multiple dimensional breakdowns including project-level, chain-level, user-type level, and product-level metrics
- **Key fields**: `user_address` from the `id` field, `block_timestamp` for daily boundaries, `user_type` classified as 'Transaction sender', `chain` set to 'pendulum'

### Component D: User metric aggregation
- **Purpose**: Aggregate user counts across different dimensional breakdowns
- **Logic**: Apply HyperLogLog merge operations to combine daily user counts across multiple dimensions: project-level aggregation for overall metrics, chain-level breakdown for network-specific analysis, user-type breakdown for activity classification, and product-level breakdown for feature-specific insights. Extract final distinct user counts from merged HLL structures
- **Key fields**: `dimensions` indicating the aggregation level, `chain_id` for network identification, `product_id` for feature breakdown, `user_type` for activity classification, `user_dau` as the final distinct user count

### Final aggregation
- **Combining components**: The ARPU calculation divides daily revenue (from Component B) by daily active users (from Component D) using the `calculate_arpu` macro, which performs the mathematical division of revenue by user count for each day
- **Currency conversion**: All revenue values are converted to USD using end-of-day CoinGecko price feeds before the ARPU calculation, ensuring consistent currency representation
- **Time aggregation**: Both revenue and user metrics use daily timestamp truncation with consistent day boundaries, ensuring proper alignment for the division calculation
- **Final calculation**: ARPU = Daily Revenue (USD) ÷ Daily Active User Count, with missing data points filled using a 'fill_zeros' strategy to maintain complete time series data and standardized output formatting applied through the finalization macro

*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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