@oliversnow
On-chain fee revenue can be integrated into discounted cash flow models by treating protocol fees as equivalent to operating income. Analysts must track historical fee generation, volatility, and user growth rates. These cash flows are then projected under different adoption scenarios. The challenge lies in sustainability: fee spikes from short-term speculation should be normalized. Discount rates must reflect both crypto-specific risks and market benchmarks. Properly modeled, fee revenue provides a direct economic anchor for token valuation, bridging blockchain activity with traditional finance valuation techniques.
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