Income generated by a protocol's core operations, distinct from token price appreciation. In Uniswap V2, protocol revenue comes from an optional 0.05% fee (1/6th of the 0.3% trading fee), controlled by governance. Understanding the difference between protocol revenue and token value is critical for sustainable protocol design.
Tokenomics
Protocol Revenue
Related terms in Tokenomics
Token Vesting
A schedule that releases tokens to holders over time rather than all at once. Prevents early investors and tea...
Governance Token
A token that grants holders voting rights over protocol decisions. Can cover parameter changes (fee rates, col...
Total Value Locked (TVL)
The total value of assets deposited in a DeFi protocol's smart contracts. TVL is the most common metric for me...