# Polkadot BridgeHub Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees retained by the Polkadot protocol treasury from activity on Polkadot BridgeHub. This includes fees paid for cross-chain message routing, execution, and general transaction processing. As Polkadot BridgeHub is a system parachain, all collected fees are directed to the protocol treasury rather than shared with validators, resulting in a 100% protocol take rate.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Polkadot BridgeHub
- **External data**: End-of-day price feeds for the native DOT asset

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Capture the total value paid by users for transactions executed on the parachain.
- **Logic**: `TransactionFeePaid` events are parsed to identify successful fee payments. The base fee amount and the tip amount are extracted from the event data. These components are summed to determine the total fee paid per extrinsic.
- **Key fields**: `amount` (base transaction fee), `tip` (voluntary priority fee)

### Component B: Protocol revenue allocation

- **Purpose**: Determine the specific portion of fees retained by the protocol treasury.
- **Logic**: A protocol take rate of 100% is applied to all fees. Unlike the Polkadot Relay Chain, where 20% of fees are distributed to validators as supply-side rewards, Polkadot BridgeHub is classified as a system parachain where 100% of the collected fees are allocated to the treasury. Supply-side fees are consequently set to zero for this product, and revenue is calculated as the total sum of fees and tips.

### Component C: USD conversion and aggregation

- **Purpose**: Normalize captured revenue into a standard currency for comparison.
- **Logic**: Revenue amounts are normalized by decimal precision and multiplied by the end-of-day price feeds for the DOT asset. Daily totals are aggregated 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 BridgeHub

Revenue

Revenue

Chain breakdown