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Blockchains (L1)

Plasma

# Plasma Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user on the Plasma blockchain. This metric is calculated by dividing total daily protocol revenue by the number of daily active users. The calculation helps assess user monetization efficiency and protocol economic health. Plasma uses an EIP-1559 fee model where both base fees (burned) and priority fees (paid to validators) constitute protocol revenue since Plasma currently operates with internal validators.

## 2. Data sources

The ARPU calculation relies on several core data sources:

- **Plasma transaction records**: Complete transaction data including sender addresses, gas usage, and effective gas prices
- **Plasma block records**: Block-level data containing base fee per gas information required for EIP-1559 calculations  
- **End-of-day token price feeds**: Daily closing prices for XPL token conversion to USD
- **Token metadata**: XPL token contract address and symbol information for the native Plasma token

## 3. Step-by-step calculation

### Component A: Transaction and user identification
- **Purpose**: Extract user activity and transaction details from raw Plasma blockchain data
- **Logic**: Transaction records are processed to identify unique users and capture gas usage metrics. Each transaction sender address (`from_address`) is classified as a user, with all users categorized as "Transaction sender" type. Key transaction details including `gas_used`, `effective_gas_price`, and timing information are extracted and validated through safe casting operations.
- **Key fields**: `from_address` (user identifier), `gas_used` (gas consumption), `effective_gas_price` (total gas price paid), `block_timestamp` (transaction timing)

### Component B: Gas fee calculation  
- **Purpose**: Calculate total gas fees using EIP-1559 model components
- **Logic**: Gas fees are calculated using the EIP-1559 model by combining base fees and priority fees. Base fees are computed as `gas_used` multiplied by `base_fee_per_gas` from block data, while priority fees are calculated as `gas_used` multiplied by the difference between `effective_gas_price` and `base_fee_per_gas`. Both fee components are divided by 1e18 to correct for decimal places in the native token denomination. Transaction data is joined with block data to obtain the required `base_fee_per_gas` values.
- **Key fields**: `base_fee_per_gas` (from blocks), `effective_gas_price` (from transactions), computed `base_fee` and `priority_fee` amounts

### Component C: Revenue aggregation and USD conversion
- **Purpose**: Aggregate daily gas fees and convert to USD for revenue calculation
- **Logic**: Gas fees are aggregated daily by summing base fees and priority fees across all transactions. Since Plasma currently uses internal validators, both base fees (burned) and priority fees (paid to validators) constitute protocol revenue. The total daily fees are converted to USD using end-of-day price feeds for the XPL token. Daily boundaries are established using day-truncated timestamps.
- **Key fields**: Daily aggregated `fees` (base_fee + priority_fee), USD-converted `revenue` amounts

### Component D: Daily active user counting
- **Purpose**: Count distinct active users per day using efficient aggregation
- **Logic**: Daily active users are identified by counting distinct `from_address` values per day from transaction data. The calculation uses HyperLogLog (HLL) algorithms for efficient distinct counting across large datasets. Users are aggregated by day using timestamp truncation, and the system creates multiple dimensional breakdowns including project-level, chain-level, user-type-level, and product-level views.
- **Key fields**: `user_address` (distinct user identifier), `user_dau` (daily active user count)

### Final aggregation
- **Combining components**: Revenue and DAU metrics are combined using a standardized ARPU calculation macro that divides daily revenue by daily active users for the same time period
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day token price feeds before the ARPU division
- **Time aggregation**: Both revenue and user metrics use consistent daily boundaries (day-truncated timestamps) to ensure proper alignment
- **Final calculation**: ARPU equals total daily protocol revenue in USD divided by the count of daily active users, with missing days filled with zero values to maintain complete time series data

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

PlasmaXPL

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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