# Polkadot People Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees that is retained by the protocol treasury on Polkadot People. As a system parachain, all fees paid by users for identity-related operations and transactions are collected by the protocol. Revenue is comprised of both the base transaction fee and any tips provided by users, reflecting the total economic value captured by the product before operating expenses.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Transaction fee extraction for Polkadot People

- **Purpose**: Captures the total fees and tips paid by users for transactions on the Polkadot People chain.
- **Logic**: `TransactionFeePaid` events are parsed from Polkadot People. Two distinct fee components are extracted from the event data: the base fee amount and the optional tip. These values are identified and isolated for every successful transaction.
- **Key fields**: `amount` (base transaction fee) and `tip` (user-provided priority payment).

### Component B: Revenue determination

- **Purpose**: Applies the protocol take rate to the total fees collected.
- **Logic**: Total fees are calculated as the sum of the base fee amount and the tip. For Polkadot People, which operates as a system parachain, a 100% take rate is applied. No portion of the fees is distributed to supply-side participants (such as validators), meaning total revenue is equivalent to total fees collected.

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes the calculated revenue into a standard currency for reporting.
- **Logic**: Fee amounts are normalized by the asset's decimal precision. The resulting daily totals are multiplied by the end-of-day USD price of the DOT asset. Data is 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 People

Revenue

Revenue

Chain breakdown