Revenue Sustainability Analysis

Revenue sustainability analysis examines whether a protocol's income is consistent and durable over the long term. It involves looking at the sources of revenue, such as transaction volume or interest, and determining if they are dependent on unsustainable incentives.

Many protocols offer high yields that are funded by inflationary token emissions, which is not a sustainable revenue model. A sustainable protocol generates revenue through genuine economic activity and user demand.

This analysis is critical for distinguishing between short-term growth hacks and long-term, viable businesses. It is a cornerstone of fundamental analysis in the digital asset space.