How do you view REV indicators? A comprehensive list of insights from all parties

Author: David C, Bankless author; Translation: Golden Finance xiaozou

Over the past week, Crypto Twitter has conducted a fierce discussion on a new popular indicator: Real Economic Value (REV). The metric was launched by Blockworks Research to track the actual costs users pay for using blockchain — including basic handling fees and MEV tips.

REV (Real Economic Value) is a standardized indicator for measuring the accumulation of blockchain value generated by user activities. It includes in- protocol transaction fees and out-of-protocol tips paid by users for transaction execution, thus reflecting the monetization needs of on-chain transactions. ——Blockworks

As a block space demand signal and on-chain real usage evaluation tool, this indicator has quickly become popular, and has recently highlighted Solana's position as a high-value creation platform. Despite its general recognition of its value, no one regards it as the only key indicator.

The core of the debate is extremely subtle: How much weight should REV occupy in blockchain valuation? Should it be used as a core value signal, or one of many indicators? Are certain groups that drive a particular narrative abused this indicator?

We explore the content of Twitter discussion in depth and extract the following most representative views.

The most popular REV insights are as follows:

▪️ ****REV is a powerful starting point for analysis

Jon Charbonneau, co-founder of DBA Crypto (the first proposed REV as the L1/L2 token valuation framework in November last year) believes that REV is similar to the role of revenue on stock valuation in traditional finance, providing a specific benchmark for blockchain evaluation. He stressed that although a single data cannot cover all information, as the market matures, REV can develop into a more refined valuation model.

What needs special attention not only is the current REV value, but also its long-term quality and sustainability. If a chain continues to incur competitive fees due to high transaction volume (taking Hyperliquid and Ethereum as examples), the chain should receive a higher valuation multiple compared to temporary congestion fees because it implies greater future earning potential.

▪️ ****REV is a clear but incomplete signal

David Hoffman simplifies: REV is useful—but not omnipotent. It directly shows the user's willingness to pay for on-chain services, and is still an effective tool for measuring needs, even if it is imperfect.

He was puzzled by the recent conflict between the Ethereum community on REV. The core narrative of Ethereum is to have the most valuable block space. If users pay the highest fee for it, REV should reflect this. When REV verifies this narrative, it is obviously contradictory.

David proposed an explanation framework: chains such as Solana that optimize fast state transitions (high frequency trading) will naturally produce higher REVs; Ethereum focuses on state storage, and its value cannot be equally visible through REVs. He still regards REV as a secondary indicator, similar to the simplified version of the cash flow discount model (DCF), and needs to be used in conjunction with other indicators. As for what specific supplementary indicators are, Ryan is exploring the answer.

▪️ **** The value of REV is beyond imagination

Spire founder Mteam.eth defended REV: Not perfect, but extremely practical.

Its point of view is very pragmatic: the problem is not REV itself, but people's misunderstandings. "All models are not the right one, but some are useful." He believes that REV is one of the most useful ones. Blockchain is not an enterprise, and REV is not revenue-but it does reveal the intensity of demand for on-chain services, reflecting users' valuation of block space, and should be included in a broader evaluation toolbox.

But this is by no means a shortcut to blockchain valuation. Solana's REV may reach 2-4 times that of Ethereum, but the token value may not be higher. Judging on-chain value based solely on REV is just like evaluating a company based solely on revenue - completely ignoring the dimensions of profit and growth.

▪️ ****REV extremism ignores the overall situation

Ethereum community member Ryan Berckmans objected to REV fanaticism, pointing out that while REV may be useful, it is an over-provocation for some people to exaggerate it as a core indicator of the valuation of L1 tokens.

He stressed that L1 is a confidence asset (such as gold or currency), not a business. Valuation should be integrated with multi-dimensional indicators and market confidence. If REV decides everything, Tron should have a market value of $290 billion - this is obviously contrary to reality.

▪️ ****Short-term REV cannot predict long-term value

Polygon co-founder Brendan Farmer did not completely deny REV, but believed that it was often misused - especially in a short-term framework.

For example, Ethereum's annualized REV peaked at US$21.6 billion and Solana reached US$6.6 billion, but both have fallen sharply. If REV can strongly predict long-term value, these peaks should be mapped more accurately to price or activity.

He believes that short-term REV mainly reflects user wealth levels, volatility of online assets issued, and immaturity of the MEV market. Over-optimizing REVs can sacrifice affordability and user growth, which ultimately backfires.

▪️ ****REV is a proxy indicator of on-chain GDP

Paradigm co-founder Matt Huang interprets REV from a more macro perspective of blockchain valuation. He believes that the ultimate goal of smart contract platforms is to become a truly uncustodial currency—as decentralized but programmable as Bitcoin. This means not only storing value, but also supporting a wide range of financial activities without intermediaries.

From this point of view, REV is not the target itself, but the proxy indicator for estimating the real-time GDP. The ultimate measure of the practicality of the platform should be GDP rather than token speculation. REV reflects GDP by capturing pricing activity (more harder to forge), but can still be manipulated, and over-narrow optimization can trigger negative effects.

The key lies not only in the scale of on-chain GDP, but also in its relative share. If ETH or SOL ultimately fails to become a platform for large-scale storage and use value, Huang believes that its long-term value will be difficult to maintain. REV helps us observe this trajectory, but it is not the end point in itself.

Consensus Zone :

The actual consensus is more than it seems: No one sees REV as the only indicator, but very few argue for completely ignoring it. Supporters affirm the true dimension of capturing users' willingness to pay; doubters warn everyone that they are prone to abuse and cannot independently support judgment.

What is the compromise position? REV is a helpful supplement tool—but it is incomplete. The best use is to analyze indicators such as stablecoin transaction volume, TVL, developer activities and long-term user retention.

In an ecosystem like the rapid iteration of the crypto field, there is never a single indicator that will make a final decision. REV is undoubtedly an important part of the many indicator puzzles—but don't mistake it for the full picture.