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

Phala is a specialized privacy-preserving cloud computing blockchain powered by Polkadot Relay chain.

PHA holders own and govern the protocol. Phala’s investors include IOSG Ventures, Incuba Alpha, Candaq Fintech Group, and others.

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Phala

# Phala Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user on the Phala blockchain. This metric is calculated by dividing daily protocol revenue by the number of daily active users. It provides insights into user monetization and protocol efficiency, answering the question: "How much revenue does each active user generate on average per day?" The calculation uses transaction fee data as the revenue source and transaction senders as the user base.

## 2. Data sources

The ARPU calculation relies on these raw data sources:

- **Phala blockchain events**: Parsed `TransactionFeePaid` events from the `transactionPayment` pallet containing transaction fee and tip amounts in JSON format
- **Phala blockchain extrinsics**: Transaction records containing sender addresses and transaction metadata 
- **End-of-day price feeds**: PHA token prices from CoinGecko API for USD conversion
- **Token metadata**: PHA token decimal configuration (12 decimals) for unit conversion

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract and process raw transaction fees paid by users
- **Logic**: Parse `TransactionFeePaid` events from the `transactionPayment` pallet on Phala blockchain. Extract `transaction_fee` and `transaction_tip` amounts from the JSON `event_data` array (positions 1 and 2). Combine fee and tip amounts to get total transaction cost. Convert from raw units by dividing by 10^12 to get standard PHA token amounts. Apply daily timestamp truncation for consistent time boundaries.
- **Key fields**: `transaction_fee`, `transaction_tip`, `event_data`, `timestamp`, `extrinsic_id`

### Component B: Revenue calculation  
- **Purpose**: Convert PHA fee amounts to USD revenue and calculate net protocol revenue
- **Logic**: Take processed transaction fees and convert to USD using end-of-day PHA price feeds from CoinGecko. Apply the conversion at daily granularity to ensure consistent pricing across all transactions within each day. Calculate supply-side fees (set to 0 for Phala, meaning no fees are redistributed to validators or other parties). Subtract supply-side fees from total fees to get net protocol revenue.
- **Key fields**: `fees`, `coingecko_id` (pha), `transaction_fee`, `fees_supply_side`

### Component C: Daily active user counting
- **Purpose**: Count unique users who sent transactions each day
- **Logic**: Extract transaction sender addresses from Phala extrinsics using the `id` field as the user identifier. Apply daily timestamp truncation to group transactions by day. Use HyperLogLog sketching for efficient deduplication of user addresses within each day. Create multiple dimensional breakdowns (by chain, user type, product) but use the project-level aggregate for ARPU calculation.
- **Key fields**: `user_address`, `block_timestamp`, `chain`, `user_type`

### Final aggregation
- **Combining components**: Revenue and user count metrics are combined through the `calculate_arpu` macro, which performs a division operation between daily revenue amounts and daily active user counts
- **Currency conversion**: All fee amounts are converted to USD using end-of-day PHA token prices, ensuring consistent valuation across time periods
- **Time aggregation**: Both revenue and user metrics use daily timestamp boundaries (timestamp truncated to day), ensuring alignment between numerator and denominator
- **Final calculation**: ARPU = Daily Revenue (USD) ÷ Daily Active Users, where revenue represents total transaction fees paid and users represent unique transaction senders per day

*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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