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

Tezos is a smart contract platform for decentralized applications (a blockchain). Tezos was founded by Arthur Breitman & Kathleen Breitman etc. and launched in 2018.

XTZ holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

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Blockchains (L1)

Tezos

# Tezos Revenue Methodology

## 1. Overview

The Tezos revenue metric tracks protocol-level revenue generated by the Tezos blockchain. Unlike some protocols that capture a portion of transaction fees as revenue, Tezos operates under a model where all transaction fees are distributed to validators/bakers rather than retained by the protocol itself. Therefore, this metric is explicitly set to zero for all time periods, reflecting Tezos' fee distribution mechanism where the protocol does not capture revenue from user transactions.

## 2. Data sources

The calculation relies on the following data sources:
- **Tezos blockchain data**: Custom scraper that extracts fee information from Tezos blocks, including block timestamps, block levels (heights), and transaction fee amounts
- **End-of-day price feeds**: CoinGecko price data for XTZ tokens to enable USD conversion
- **Tezos network metadata**: Chain identifiers and protocol classification information

## 3. Step-by-step calculation

### Component A: Raw fee data collection
- **Purpose**: Extract transaction fee data from the Tezos blockchain
- **Logic**: A custom scraper processes Tezos blocks to collect fee information including `block_timestamp`, `level` (block number), and `fees` (in raw XTZ units). The fee amounts are adjusted for XTZ's 6 decimal places by dividing by 10^6 to convert from the smallest unit to standard XTZ denomination.
- **Key fields**: `block_timestamp` for timing, `level` as block identifier, `amount` as the decimal-adjusted fee amount, and chain metadata including `token_symbol` (XTZ) and `coingecko_id` for price lookups

### Component B: Daily fee aggregation and USD conversion
- **Purpose**: Aggregate fees by day and convert to USD values
- **Logic**: Fee data is grouped by day using timestamp truncation, with fees summed across all transactions within each day. The aggregated XTZ amounts are then converted to USD using end-of-day CoinGecko price feeds. Each day's record includes chain metadata such as `market_sector_id` (blockchains_l1) and `business_segment_id` (blockchain).
- **Key fields**: `daily_timestamp` as the day boundary, `chain_id` (tezos), `fees` as the USD-converted daily total, and classification fields for data organization

### Component C: Revenue calculation
- **Purpose**: Calculate protocol revenue from fee data
- **Logic**: The revenue calculation explicitly sets all revenue values to zero, reflecting Tezos' protocol design where transaction fees are entirely distributed to validators/bakers rather than retained by the protocol. This is implemented by selecting data from the fees table but hardcoding the `revenue` field to 0 for all records.
- **Key fields**: All timestamp and classification fields from the fees data, with `revenue` explicitly set to 0

### Final aggregation
- **Combining components**: The revenue metric uses the same timestamp and classification structure as the fees data but replaces fee amounts with zero values
- **Currency conversion**: Not applicable since revenue is zero, but the underlying fee data uses end-of-day CoinGecko XTZ prices for reference
- **Time aggregation**: Daily boundaries are maintained using timestamp truncation to day level
- **Final calculation**: Revenue = 0 for all time periods, representing Tezos' model where protocol revenue is zero as all fees go to validators rather than being retained by the protocol

*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.

TezosXTZ

Revenue

Revenue

Competitive landscape