Tokenholder Revenue
The portion of protocol revenue that actually flows to token holders through buybacks, dividends, or burns.
In-Depth Explanation
Not all protocol revenue reaches tokenholders—some goes to the treasury, team, or is reinvested. Tokenholder revenue = revenue distributed via buybacks + dividends + burns that benefit holders. This is what actually creates token value and should be used for conservative valuations.
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Related Terms
Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.
More in Valuation
View all →Market Capitalization
Market CapThe total value of a token's circulating supply, calculated as price × circulating supply.
Fully Diluted Valuation
FDVThe theoretical market cap if all tokens (including locked, unvested, and unissued) were in circulation.
Price to Sales Ratio
P/SValuation metric comparing market cap (or FDV) to annualized revenue.
Price to Fees Ratio
P/FValuation metric comparing market cap (or FDV) to total fees generated, regardless of fee distribution.