# Polkadot AssetHub Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees that is retained by the Polkadot treasury from activity on Polkadot AssetHub. As a system parachain, Polkadot AssetHub allocates 100% of collected fees and tips to the protocol treasury, with no portion distributed to supply-side participants such as validators. This metric reflects the protocol's earnings from providing asset issuance and transfer services before operating expenses are deducted.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` and `AssetTxFeePaid` events from the `assetTxPayment` pallet on Polkadot AssetHub
- **External data**: End-of-day price feeds for native assets and supported fee assets including USDC, USDt, and MYTH

## 3. Step-by-step calculation

### Component A: Native fee extraction

- **Purpose**: Captures fees paid in the native DOT asset on Polkadot AssetHub
- **Logic**: `TransactionFeePaid` events are parsed from the Polkadot AssetHub ledger. The base fee amount and the optional tip are extracted from the event data. Amounts are normalized by the native asset's decimal precision.
- **Key fields**: `amount` (base transaction fee), `tip` (priority payment)

### Component B: Asset-based fee extraction

- **Purpose**: Captures fees paid using supported non-native assets on Polkadot AssetHub
- **Logic**: `AssetTxFeePaid` events are parsed from the `assetTxPayment` pallet. The specific asset used for payment is identified by mapping the `token_id` against a registry of supported fee assets, which includes USDC, USDt, MYTH, and others. The fee and tip amounts are extracted and normalized based on the specific decimal precision of the identified asset.
- **Key fields**: `token_id` (asset identification), `amount` (transaction fee), `tip` (priority payment)

### Component C: Revenue determination

- **Purpose**: Calculates the protocol's retained share of total fees
- **Logic**: Total fees are calculated as the sum of base amounts and tips from both native and asset-based transactions. Since Polkadot AssetHub is a system parachain, the supply-side fee allocation is zero. Consequently, 100% of the total fees are classified as protocol revenue and attributed to the Polkadot treasury.
- **Key fields**: `fees` (total transaction costs), `fees_supply_side` (set to zero)

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes revenue values into USD for reporting
- **Logic**: Daily revenue totals are converted to USD using end-of-day price feeds corresponding to the asset used for payment. For DOT-denominated fees, the native price feed is applied. For other assets, price feeds are matched by asset address and chain. All values are aggregated to a daily granularity using UTC day boundaries.

*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 (L2)

Network participants process transactions and receive fees from users (supply-side fees).

Polkadot is a security & interoperability platform for blockchains and applications. Polkadot was founded by Gavin Wood and launched in 2020.

DOT holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Polkadot’s investors include Polychain, IOSG Ventures, Hashkey, etc.

Polkadot AssetHub

Revenue

Revenue

Chain breakdown