# Polkadot Coretime Revenue Methodology

## 1. Overview

Revenue measures the portion of fees retained by the Polkadot protocol from the operations of Polkadot Coretime. This metric captures the value generated from transaction fees on the Polkadot Coretime chain and the sale of computational resources (cores) to parachains. Revenue is calculated by subtracting supply-side fees (payments to validators) from total fees. For Polkadot Coretime, which operates as a system parachain, 100% of fees are allocated to the protocol treasury.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events, and `Purchased` and `Renewed` events from `broker` pallets on Polkadot Coretime
- **External data**: End-of-day price feeds for the native DOT asset

## 3. Step-by-step calculation

### Component A: Transaction fee collection

- **Purpose**: Capture the fees paid for executing transactions on the Polkadot Coretime chain
- **Logic**: `TransactionFeePaid` events are parsed from the Polkadot Coretime chain. The base fee amount and any additional tips are extracted from the event data.
- **Key fields**: `amount`, `tip`

### Component B: Coretime sales and renewals

- **Purpose**: Capture the revenue generated from the sale of Polkadot Coretime
- **Logic**: `Purchased` and `Renewed` events are parsed from the `broker` pallet on Polkadot Coretime. These events represent the acquisition of new coretime allocations or the extension of existing ones by parachains and projects. The payment amounts are extracted directly from the event parameters.
- **Key fields**: `amount`

### Component C: Revenue determination and supply-side exclusion

- **Purpose**: Calculate the protocol's retained share of collected fees
- **Logic**: Revenue is defined as total fees minus supply-side fees. While 20% of fees on the Polkadot Relay Chain are distributed to validators as supply-side fees, 100% of the fees generated on system parachains like Polkadot Coretime are retained by the protocol treasury. Consequently, supply-side fees are set to zero for this product, and revenue equals 100% of the collected transaction fees and coretime sales.

### Component D: USD conversion and normalization

- **Purpose**: Normalize fee amounts and convert them into a standard currency
- **Logic**: All collected DOT amounts are normalized by the asset's decimal precision. These values are then multiplied by the end-of-day price of DOT to calculate the revenue in USD. Data is aggregated on 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 Coretime

Revenue

Revenue

Chain breakdown