Through the use of blockchain and modern APIs, Ripple enables financial institutions who are part of the network, RippleNet, to send money globally, instantly, reliably and for fractions of a penny. RippleNet is built on top of Ripple’s consensus ledger, XRP Ledger (XRPL).

Ripple is the leading provider of crypto-enabled solutions for businesses. Ripple was founded by Chris Larsen and Jed McCaleb and launched in 2012 (previously OpenCoin).

XRP tokenholders own and govern Ripple's consensus ledger 'XRP Ledger' (XRPL). Ripple's investors include a16z, Pantera Capital, Route 66 Ventures, etc.

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XRP Ledger

# XRP Ledger Revenue Methodology

## 1. Overview

Revenue measures the portion of fees retained by XRP Ledger across its native chain and XRPL AMM product. The XRP Ledger ecosystem generates fees from two sources: base layer transaction fees that are burned (resulting in zero protocol revenue), and XRPL AMM trading fees that flow entirely to liquidity providers (also resulting in zero protocol revenue). Revenue is calculated as the difference between total fees collected and fees distributed to supply-side participants.

## 2. Data sources

- **Blockchain data**: Transaction fee data from XRP Ledger transactions, and XRPL AMM reserve state changes inferred from consecutive swap transactions
- **External data**: End-of-day price feeds for XRP and traded assets

## 3. Step-by-step calculation

### Component A: Base layer transaction fees

- **Purpose**: Calculate native chain transaction fees paid by users
- **Logic**: Transaction fees are extracted from all XRP Ledger transactions and aggregated daily. These fees are burned by the protocol rather than retained as revenue.
- **Key fields**: `fee_charged` representing the transaction fee amount in drops (1 XRP = 1,000,000 drops)

### Component B: XRPL AMM trading fee calculation

- **Purpose**: Compute trading fees generated by the XRPL AMM automated market maker
- **Logic**: Reserve state changes are tracked across consecutive transactions to infer swap volumes using a reserve-delta approach. The lag function computes reserve changes only for swap-type transactions (`Payment` and `OfferCreate` transaction types), excluding liquidity provision operations. Trading fees are calculated as `volume_usd × trading_fee ÷ 100,000` where trading_fee is denominated in units of 1/100,000 (value 1000 = 1%). Fee rates are tracked per pool from `AMMCreate` and `AMMVote` transaction types and applied using valid-from/valid-to windows. Pools with extreme reserve imbalances (5000x+ ratios indicating price manipulation) are excluded via a denylist. These XRPL AMM fees flow entirely to liquidity providers.
- **Key fields**: `delta_0` and `delta_1` (reserve changes for paired assets), `trading_fee` (fee rate per pool), `volume_usd` (smaller of the two swap sides in USD)

### Component C: Revenue calculation

- **Purpose**: Determine protocol-retained revenue after supply-side distributions
- **Logic**: Revenue is calculated as total fees minus supply-side fees. For base layer transactions, supply-side fees are zero (fees are burned), but this contributes zero revenue as burned fees are not retained. For XRPL AMM trades, supply-side fees equal 100% of trading fees (all flow to liquidity providers), resulting in zero protocol revenue. The net result across both components is zero revenue retained by the protocol.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee components to USD for consistent reporting
- **Logic**: Native XRP amounts are normalized by decimal precision (dividing by 1,000,000) and multiplied by end-of-day XRP prices. XRPL AMM trading volumes are priced using the lesser of the two swap sides in USD to avoid double-counting. All values use daily granularity with 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.

XRP LedgerXRP

Revenue

Revenue

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