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Onchain Economics

Protocol Revenue

Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.

In-Depth Explanation

Protocol revenue is distinct from total fees generated on a platform. For example, Uniswap generates billions in trading fees, but most goes to LPs—only the protocol fee (if enabled) counts as protocol revenue. This distinction matters for valuation because protocol revenue is what can potentially flow to tokenholders.

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