Protocol Revenue
Plain English
Money that protocols earn from their services - trading fees, lending fees, subscription costs, etc. This revenue can be distributed to token holders, used for development, or burned to reduce token supply.
Technical
Value captured by protocols through transaction fees, premium services, or economic rent from network effects. Revenue distribution mechanisms include: token holder dividends, protocol-owned liquidity expansion, ecosystem development funding, or deflationary burns. Sustainable revenue models are essential for long-term protocol viability and token value accrual.