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

Ronin is a smart contract platform for decentralized applications (a blockchain). Ronin was founded by Sky Mavis and launched in 2021.

RON holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Sky Mavis' investors include a16z, Binance, Animoca Brands, etc.

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Ronin

# Ronin Earnings Methodology

## 1. Overview

Ronin earnings represents the protocol's net income calculated as revenue minus expenses. Revenue comes from transaction fees that are burned (base fees), while expenses represent RON token rewards distributed to network participants including validators, stakers, and bridge operators. This metric measures the protocol's financial performance by comparing the value of fees collected against the cost of network incentives.

## 2. Data sources

- **Ronin blockchain transaction data**: Raw transaction records including gas usage, effective gas prices, sender and recipient addresses, and block references
- **Ronin blockchain block data**: Block-level information including base fees per gas, gas limits, and block timestamps
- **Ronin validator contract events**: Parsed `StakingRewardDistributed` events from the ValidatorSet contract containing reward amounts distributed to RON stakers
- **Ronin mining reward events**: Parsed `MiningRewardDistributed` events from the ValidatorSet contract containing rewards distributed to RON validators
- **Ronin bridge operator events**: Parsed `BridgeOperatorRewardDistributed` events from the ValidatorSet contract for bridge operator rewards (discontinued)
- **Ronin bridge reward events**: Parsed `BridgeRewardScattered` events from the BridgeReward contract for current bridge operator rewards
- **End-of-day price feeds**: External price data from CoinGecko for RON token USD conversion

## 3. Step-by-step calculation

### Component A: Revenue calculation from base fees

- **Purpose**: Calculate daily revenue from transaction fees that are burned or sent to treasury
- **Logic**: Extract all Ronin transactions with their gas usage and corresponding block base fees. For each transaction, multiply the `gas_used` amount by the block's `base_fee_per_gas` to get the base fee amount in wei, then convert to RON tokens by dividing by 10^18. Aggregate all base fee amounts by day to get daily revenue totals. Convert daily RON amounts to USD using end-of-day price feeds from CoinGecko.
- **Key fields**: `gas_used` (transaction gas consumption), `base_fee_per_gas` (block-level base fee rate), `base_fee_amount` (calculated fee per transaction), daily aggregated `revenue` amounts

### Component B: Expenses calculation from token rewards

- **Purpose**: Calculate daily expenses from RON token rewards distributed to network participants  
- **Logic**: Parse reward distribution events from multiple Ronin contracts to capture all types of RON rewards. Extract amounts from `StakingRewardDistributed` events (rewards to stakers), `MiningRewardDistributed` events (rewards to validators), `BridgeOperatorRewardDistributed` events (legacy bridge operator rewards), and `BridgeRewardScattered` events (current bridge rewards). All reward amounts are already in RON token units. Apply decimal corrections and convert to USD using end-of-day price feeds. Aggregate all reward types by day to get total daily expenses.
- **Key fields**: `totalAmount` from staking events, `amount` from mining and bridge events, aggregated daily `token_incentives` amounts converted to `expenses`

### Final aggregation

- **Combining components**: Join daily revenue and expenses data by date, with both components already converted to USD
- **Currency conversion**: Both revenue and expenses are converted to USD using end-of-day RON token prices from CoinGecko with appropriate decimal place corrections
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Subtract daily expenses from daily revenue to calculate net earnings. Apply standardized metric finalization including zero-filling for any missing days and chain availability filtering to ensure data quality and completeness.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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