# Pendulum Substrate Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees and tips that is retained by Pendulum Substrate. The protocol's earnings from network activity are reflected by this metric before any operating expenses or incentives are deducted. On Pendulum Substrate, revenue is currently equivalent to the total fees paid by users, as 100% of the transaction costs and priority tips collected during block execution are retained by the protocol.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events, covering Pendulum Substrate
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: Fee and tip extraction

- **Purpose**: Capture the raw economic value paid by users for transaction execution on the network.
- **Logic**: `TransactionFeePaid` events are parsed from the Pendulum Substrate event logs. Two distinct values are extracted from the event data: the base transaction fee and the priority tip. These values are summed to determine the total cost of the transaction to the user.
- **Key fields**: `event_data` (containing fee amount and tip values)

### Component B: Revenue attribution and normalization

- **Purpose**: Attribute the collected fees to the protocol and normalize the asset values.
- **Logic**: Total fees (base fee plus tip) are attributed as revenue, reflecting a 100% protocol take rate. All raw amounts are normalized by decimal precision.
- **Key fields**: `amount`, `tip`

### Component C: USD conversion and aggregation

- **Purpose**: Convert native asset values into a standardized USD denomination for reporting.
- **Logic**: Normalized native asset amounts are multiplied by end-of-day price feeds. The resulting USD values are aggregated by day using UTC boundaries to calculate the daily total revenue for Pendulum Substrate.

*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.

Revenue

Blockchains (L1)

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.

Pendulum Substrate

Archived

Revenue

Revenue

Chain breakdown