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 Revenue Methodology

## 1. Overview

The Phala Network revenue metric measures the net protocol revenue generated from transaction fees on the Phala blockchain. This metric calculates the total transaction fees collected by the protocol minus any fees paid to supply-side participants (validators, collators, etc.). Currently, all transaction fees are retained as protocol revenue with no supply-side distributions.

## 2. Data sources

- **Phala blockchain events**: Raw event logs from the Phala Network blockchain, specifically from the `transactionPayment` pallet
- **Transaction fee events**: Parsed `TransactionFeePaid` events containing fee and tip amounts
- **External price data**: End-of-day price feeds from CoinGecko for PHA token USD conversion
- **Token metadata**: PHA token decimal configuration (12 decimals)

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract and process all transaction fees paid on the Phala Network
- **Logic**: Parse `TransactionFeePaid` events from the `transactionPayment` pallet to extract fee components. Each event contains a base `transaction_fee` and optional `transaction_tip` in the event data array. These amounts are combined to get the total fee paid per transaction. Raw fee amounts are converted from PHA's native units to decimal format by dividing by 10^12 to account for the token's decimal precision.
- **Key fields**: `transaction_fee`, `transaction_tip`, `extrinsic_id`, `timestamp`

### Component B: Fee aggregation and USD conversion  
- **Purpose**: Aggregate daily transaction fees and convert to USD
- **Logic**: Group processed transaction fees by day and sum the total fee amounts. Convert the PHA token amounts to USD using end-of-day price feeds from CoinGecko for the 'pha' token identifier. Apply daily timestamp grain aggregation to create consistent daily revenue figures.
- **Key fields**: `fees`, `timestamp`, `chain_id`, `coingecko_id`

### Component C: Supply-side fee calculation
- **Purpose**: Calculate fees distributed to supply-side participants
- **Logic**: Currently sets `fees_supply_side` to 0 for all records, indicating that Phala Network retains all transaction fees as protocol revenue without distributing payments to validators or other network participants.
- **Key fields**: `fees_supply_side`

### Final aggregation
- **Combining components**: The final revenue is calculated by taking total fees from Component B and subtracting supply-side fees from Component C using a union operation (fees as positive values, supply-side fees as negative values)
- **Currency conversion**: USD conversion occurs before final aggregation using end-of-day CoinGecko price feeds
- **Time aggregation**: Daily aggregation boundaries are used consistently across all components  
- **Final calculation**: Net revenue equals total transaction fees minus supply-side fees, though currently supply-side fees are zero, so revenue equals total fees collected

*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.

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