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

The Open Network (TON) is a smart contract platform for decentralized applications (a blockchain). The Open Network was founded by Telegram and launched in 2019.

GRAM holders own and govern the protocol. They currently take (burn) a cut of the total transaction fees paid by users (revenue). The Open Network's investors include KuCoin Ventures, MEXC Ventures, DWF Labs, etc.

governance

github

twitter

etherscan

website

Blockchains (L1)

# TON Earnings Methodology

## 1. Overview

TON earnings represents the net profit of the TON blockchain, calculated as revenue minus expenses on a daily basis. This metric measures the blockchain's financial performance by accounting for fee revenue generated through the protocol's fee burn mechanism and expenses in the form of block rewards paid to validators. The calculation uses TON's unique dual-blockchain architecture with masterchain and workchain components.

## 2. Data sources

- **TON blockchain blocks**: Block data from both masterchain (workchain -1) and workchain (workchain 0) including timestamps, sequence numbers, shard information, and block relationships
- **TON transaction records**: Transaction data including fees, workchain assignments, account information, and transaction hashes
- **TON message data**: Message records containing forward fees and routing fees for inter-contract communications
- **End-of-day price feeds**: End-of-day price feeds for the native TON asset
- **Asset metadata**: Decimal precision information for the native TON asset

## 3. Step-by-step calculation

### Component A: Fee collection and revenue calculation

- **Purpose**: Calculate total network fees and determine protocol revenue from fee burn mechanism
- **Logic**: Aggregate all transaction fees and outgoing forward fees from TON transactions and messages. Transaction fees are extracted directly from transaction records while forward fees are summed from outgoing messages linked by transaction hash. Total fees are converted to USD using end-of-day TON asset prices. Revenue is calculated as 50% of total fees, but only for dates after June 17, 2023 when the fee burn mechanism was activated. Before this date, revenue is set to zero.
- **Key fields**: `transaction_fees` from transaction records, `forward_fee` from outgoing messages, `block_timestamp` for daily aggregation

### Component B: Block reward calculation and expenses

- **Purpose**: Calculate validator incentives paid through block rewards across TON's dual blockchain architecture
- **Logic**: Calculate block rewards separately for masterchain and workchain blocks. Masterchain blocks receive a fixed reward of 1.7 TON per block. Workchain blocks share a total of 1 TON per masterchain block, divided equally among all shards that produced blocks for that masterchain block. Block rewards are aggregated daily, converted to USD using end-of-day TON asset prices, and classified as expenses representing the protocol's cost of operation.
- **Key fields**: `seqno` for block identification, `workchain` for chain classification, `shard` for workchain reward distribution, `masterchain_block_number` for linking workchain to masterchain blocks

### Component C: Token incentives and expense aggregation

- **Purpose**: Convert block rewards into standardized expense format
- **Logic**: Calculated block rewards are normalized by decimal precision. Adjusted amounts are converted to USD using end-of-day TON asset prices. All token incentives are aggregated daily and classified as total expenses for the protocol.
- **Key fields**: `amount` representing raw block rewards, converted and aggregated into `token_incentives`

### Final aggregation

- **Combining components**: Revenue and expenses are calculated independently then combined using the earnings formula
- **Currency conversion**: Both revenue and expenses are converted to USD using end-of-day TON asset prices with appropriate normalization for decimal precision
- **Time aggregation**: All components are aggregated to daily boundaries using timestamp truncation
- **Final calculation**: Earnings equals revenue (50% of fees after June 17, 2023) minus expenses (total block rewards across masterchain and workchain blocks), calculated daily in USD

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

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

TONGRAM

Earnings

Earnings

Competitive landscape