What are the business models for blockchain companies?

This blog post has been written by the person who has mapped the blockchain business models market in a clean and beautiful presentation

The blockchain industry has evolved from cryptocurrency speculation into a sophisticated ecosystem generating billions in revenue through proven business models.

DeFi protocols alone generated over $13.99 billion in supply-side fees by March 2025, while infrastructure providers secure trillions in assets for thousands of enterprise clients. From tokenized real estate to AI-blockchain integration, today's blockchain companies monetize through transaction fees, governance tokens, staking rewards, enterprise licensing, and cross-chain services.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What are the main types of business models blockchain companies are using today?

Blockchain companies generate revenue through five primary business model categories: transaction-based models, token economics, service platforms, infrastructure provision, and tokenized asset management.

Transaction-based models capture value through fees charged for blockchain interactions. Cryptocurrency exchanges like Coinbase and Binance generate billions annually through trading fees (typically 0.1-0.5% per transaction), withdrawal fees ($1-25 per transfer), and listing fees ($100,000-$1M for new tokens). Layer 1 blockchains collect transaction fees paid to miners or validators, with Ethereum generating over $1.5 billion annually from gas fees alone.

Token economic models create value through Initial Coin Offerings (ICOs), governance tokens, and staking mechanisms. These models have evolved beyond speculation to provide genuine utility - governance tokens grant voting rights in protocol decisions while often appreciating based on platform usage. Staking models like those used by Cardano and Tezos allow token holders to earn 4-8% annual returns by securing network operations.

Service-based platforms focus on Blockchain-as-a-Service (BaaS) offerings, smart contract development, and enterprise solutions. Major cloud providers like Microsoft Azure and Amazon Web Services generate millions through subscription-based blockchain services, charging $500-$50,000 monthly depending on usage tiers and enterprise requirements.

Infrastructure providers offer the foundational tools and services that enable blockchain ecosystems to function. Companies like Chainlink facilitate cross-chain communication, while security firms like Fireblocks secure over $2 trillion in digital assets for institutional clients, charging 0.1-0.5% of assets under management annually.

How exactly do blockchain companies generate revenue from their models?

Blockchain companies monetize through direct service fees, marketplace commissions, subscription services, and token-based value capture mechanisms that scale with network usage and adoption.

Direct service fees represent the most straightforward revenue stream. Payment processors charge 1-3% per transaction compared to traditional 3-5% credit card fees, while offering settlement times of minutes rather than days. Digital asset custody services charge annual fees of 0.25-1% of assets under management, with premium security features commanding higher rates.

Marketplace and trading fees generate substantial recurring revenue. NFT platforms like OpenSea charge 2.5% commission on each sale, while gaming marketplaces collect 5-10% on in-game asset trades. DeFi protocols earn through interest rate spreads - lending platforms like Aave capture the difference between borrowing rates (5-15% APY) and lending rates (2-8% APY), plus additional fees for flash loans and liquidations.

Subscription models provide predictable revenue streams. Enterprise blockchain platforms charge $1,000-$100,000 monthly for access to development tools, APIs, and support services. Usage-based pricing scales with transaction volume, data storage, and computational requirements, allowing companies to monetize growth directly.

Token economics create multiple revenue channels simultaneously. Governance tokens appreciate based on protocol success while providing dividend-like distributions from fee revenue. Yield farming incentivizes liquidity provision in exchange for token rewards, while staking mechanisms generate 4-12% annual returns for network security participation.

If you want to build on this market, you can download our latest market pitch deck here

What are the most successful blockchain business models currently in 2025, and why are they working well?

DeFi protocols lead blockchain profitability in 2025, with cumulative supply-side fees surpassing $13.99 billion and exceeding token incentives for the first time, demonstrating sustainable fee-based revenue models.

Decentralized Finance platforms achieve success through multiple revenue streams and network effects. Aave and Compound generated over $500 million in protocol fees during 2025, while Uniswap exceeded $1 billion in annual protocol fees. These platforms succeed because they provide essential financial services (lending, trading, yield generation) with lower costs and greater accessibility than traditional finance.

Infrastructure providers demonstrate exceptional profitability by serving the entire blockchain ecosystem. Fireblocks secures over $2 trillion in crypto assets for 1,000+ institutional clients, charging management fees that generate hundreds of millions annually. Chainlink processes millions of oracle requests daily, with LINK token usage creating sustainable demand and value appreciation.

NFT and gaming ecosystems generate revenue through primary sales, ongoing royalties, and transaction fees. Web3 games monetize through NFT character sales ($100-$10,000 per item), marketplace royalties (5-10% per trade), and custom token economies. Battle passes and subscriptions provide recurring revenue of $10-50 monthly per active player.

Enterprise blockchain solutions achieve high margins through custom implementations and ongoing support contracts. R3's Corda platform manages over $10 billion in on-chain assets while processing over 1 million daily transactions for financial institutions. These solutions command premium pricing ($100,000-$1M+ implementations) due to regulatory compliance requirements and enterprise-grade security.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

Can you break down some specific examples of companies or startups and what business model each one uses?

Leading blockchain companies demonstrate diverse monetization strategies across infrastructure, DeFi, gaming, and enterprise sectors, with revenue models ranging from transaction fees to enterprise licensing and token economics.

Which blockchain business models are expected to gain traction or emerge in 2026?

AI-blockchain integration, real-world asset tokenization, and cross-chain interoperability represent the three most promising emerging business models expected to scale significantly in 2026.

AI-blockchain convergence creates new revenue opportunities through autonomous agent marketplaces and decentralized AI services. AI agents operating on blockchain can analyze market data, execute trades, and interact with other agents while recording actions transparently. Revenue models include transaction fees for automated services (0.1-1% per execution), subscription access to AI analytics ($100-$1,000 monthly), and marketplace commissions for AI-generated content or decisions.

Real-world asset tokenization will explode in 2026 as traditional assets like real estate, bonds, and commodities become accessible through blockchain formats. This bridges traditional finance with DeFi, creating liquidity for previously illiquid assets. Business models include listing fees for asset tokenization ($10,000-$100,000 per asset), commission on trades (0.5-2%), management fees for tokenized portfolios (1-3% annually), and automated yield distribution through smart contracts.

Cross-chain and interoperability solutions will mature significantly as ecosystems like Cosmos and Polkadot enable efficient data and asset exchange between blockchains. Revenue opportunities include bridge operator fees for cross-chain transfers ($1-50 per transaction), interoperability protocol tokens with governance and utility value, and multi-chain application fees serving multiple blockchain ecosystems simultaneously.

Decentralized Physical Infrastructure Networks (DePINs) represent another emerging model where blockchain incentivizes real-world infrastructure deployment. Projects reward users for providing computing power, storage, or connectivity with tokens, creating new revenue streams from previously underutilized resources. Revenue models include resource utilization fees, token appreciation from network growth, and premium services for enterprise users.

How do token-based models work in practice, and what are the key factors for making them profitable?

Successful token-based models balance supply mechanics, utility design, and value accrual to create sustainable economies where token value increases with platform adoption and usage.

Token supply models fundamentally determine long-term profitability. Fixed supply tokens like Bitcoin (21 million cap) drive demand through scarcity, while inflationary models like Ethereum allow network growth and adaptation. Optimal tokenomics allocate 40-60% to community distribution, 15-25% to team/advisors (with 2-4 year vesting), 10-20% to ecosystem development, and 5-15% for strategic partnerships. Balanced distribution prevents market manipulation and promotes decentralization.

Utility and governance rights create intrinsic value beyond speculation. Tokens must provide clear utility within ecosystems - transaction fee payments, governance voting, or service access. Governance rights create long-term value as token holders influence protocol direction and fee distribution. Successful projects like Aave and Compound share protocol fees with token holders, creating direct financial incentives for participation.

Staking mechanisms encourage long-term holding while providing network security. Proof-of-Stake networks typically offer 4-12% annual staking rewards, with higher returns for longer lockup periods. Liquid staking derivatives like Lido allow users to earn staking rewards while maintaining liquidity, creating additional utility and demand for underlying tokens.

Revenue sharing and buyback programs create sustainable value accrual. DeFi protocols increasingly use fee revenue to purchase and burn tokens, reducing supply while distributing value to holders. MakerDAO's governance model allows token holders to vote on stability fees and risk parameters while earning a portion of protocol revenue, aligning incentives between users and token holders.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

If you want actionable data about this market, you can download our latest market pitch deck here

What role do blockchain infrastructure providers play, and how do they make money?

Blockchain infrastructure providers serve as the foundational layer enabling enterprise adoption and ecosystem growth, monetizing through managed services, security solutions, and developer tools that generate recurring revenue.

Node and validator services represent core infrastructure offerings. Companies like Infura and Alchemy provide blockchain node access through APIs, charging based on requests per month ($0-$1,000+ monthly depending on usage). Validator-as-a-Service providers manage staking operations for institutions, earning 5-25% commission on staking rewards while handling technical complexity and slashing risks.

Security and custody solutions command premium pricing due to regulatory requirements and risk management. Fireblocks charges 0.1-0.5% annually on assets under management while providing insurance coverage and compliance tools. Multi-signature wallet providers earn through setup fees ($1,000-$10,000), monthly management fees ($100-$1,000), and transaction fees ($1-25 per transfer).

Developer tools and APIs create scalable revenue streams. Blockchain development platforms charge tiered subscription fees ($100-$10,000 monthly) based on API calls, smart contract deployments, and data storage. Premium features like advanced analytics, priority support, and custom integrations command higher pricing tiers.

Enterprise blockchain platforms generate substantial revenue through custom implementations and ongoing support. Solutions typically involve initial setup costs ($100,000-$1,000,000), annual licensing fees ($50,000-$500,000), and professional services charges ($200-$500 per hour). These platforms achieve high margins by solving specific enterprise problems like supply chain transparency, identity management, and regulatory compliance.

Are there solid examples of blockchain-as-a-service (BaaS) platforms, and how do they monetize their services?

Major cloud providers dominate the BaaS market through enterprise-grade platforms that monetize via subscription tiers, usage-based pricing, and premium professional services.

• Microsoft Azure Blockchain: Partners with ConsenSys to provide Ethereum services, charging $500-$5,000 monthly for managed blockchain networks plus per-transaction fees. Enterprise customers pay additional costs for premium support, compliance tools, and custom integrations.
• Amazon Managed Blockchain: Supports Ethereum and Hyperledger Fabric with pricing based on network size and transaction volume. Basic setups cost $200-$1,000 monthly, while enterprise deployments range from $5,000-$50,000 monthly including managed nodes, monitoring, and backup services.
• IBM Blockchain Platform: Built on Hyperledger Fabric for enterprise use, charging $1,000-$25,000 monthly based on compute resources, storage, and peer nodes. Professional services add $200-$500 per hour for implementation, training, and ongoing support.
• Google Cloud Blockchain: Provides blockchain analytics and node services with tiered pricing starting at $100 monthly for basic API access, scaling to $10,000+ for enterprise analytics and custom blockchain deployments.

BaaS platforms achieve profitability through multiple revenue streams beyond basic platform access. Professional services generate 40-60% margins through consulting, implementation, and training services. Compliance and security add-ons command premium pricing as enterprises require regulatory adherence and audit capabilities. Integration services with existing enterprise systems create additional revenue opportunities through custom development and ongoing maintenance contracts.

How do DeFi protocols build sustainable business models and manage risks?

DeFi protocols achieve sustainability through diversified revenue streams including interest spreads, trading fees, and governance token value capture, while implementing comprehensive risk management through smart contract audits, insurance integration, and community governance.

Revenue generation in DeFi operates through multiple complementary mechanisms. Lending protocols like Aave earn through interest rate spreads between borrowers and lenders, capturing 1-3% annually on billions in total value locked. Flash loan fees provide additional revenue streams, charging 0.05-0.1% for instant, uncollateralized loans. Decentralized exchanges earn through trading fees (0.05-1% per swap) while sharing revenue with liquidity providers to maintain competitive rates.

Governance token economics create long-term value alignment. Successful protocols share fee revenue with token holders through staking rewards or direct distributions. Aave distributes safety module rewards to AAVE stakers, while Compound allocates COMP tokens based on protocol usage. This creates positive feedback loops where increased usage generates more fees, increasing token value and attracting more users.

Risk management employs multiple defensive layers. Smart contract audits by firms like OpenZeppelin and ConsenSys cost $50,000-$500,000 but prevent potentially catastrophic exploits. Insurance integration through protocols like Nexus Mutual provides coverage for smart contract failures, with premiums typically ranging from 1-5% annually. Progressive feature rollouts limit initial deposit amounts to minimize potential losses during testing phases.

Community governance enables rapid response to market changes and security threats. Decentralized decision-making allows protocols to adjust interest rates, collateral requirements, and risk parameters based on market conditions. Emergency procedures enable quick responses to potential exploits, while bug bounty programs incentivize security researchers to identify vulnerabilities before malicious actors.

If you need to-the-point data on this market, you can download our latest market pitch deck here

What are the most popular use cases today in Web3, gaming, supply chain, or NFTs, and how do those projects monetize?

Web3 gaming leads monetization through NFT sales and marketplace royalties, while supply chain applications generate value through transparency premiums and efficiency gains, and NFT projects monetize via primary sales, secondary royalties, and utility-based revenue streams.

Web3 gaming monetization combines traditional gaming revenue with blockchain-specific models. Primary NFT sales generate immediate revenue through character, weapon, and land sales ranging from $10 to $10,000+ per item. Secondary marketplace royalties provide ongoing income as players trade assets, with developers typically earning 5-10% commission on each transaction. In-game economies create additional revenue through transaction fees on custom blockchains, battle pass subscriptions ($10-50 monthly), and premium currency sales.

Supply chain blockchain applications achieve monetization through efficiency improvements and transparency premiums. Companies report cost savings of 89%, enhanced traceability capabilities worth millions in risk reduction, and transparency benefits commanding 10-30% price premiums for verified products. Walmart reduced food traceability time from 7 days to 2 seconds, enabling rapid response to contamination issues and reducing liability costs. Maersk's TradeLens platform cut documentation delays by 40%, saving billions in logistics costs.

NFT projects generate revenue through multiple channels beyond initial sales. Primary sales provide immediate funding for project development, with successful collections raising millions through mint pricing of $100-$1,000+ per NFT. Secondary market royalties ensure ongoing revenue, typically 2.5-10% of each resale transaction. Utility-based models add value through exclusive access to events, communities, or services, creating demand beyond speculative trading.

Enterprise supply chain solutions monetize through subscription software licensing, implementation services, and ongoing support contracts. Blockchain tracking systems charge annual licensing fees of $10,000-$500,000 based on transaction volume and complexity. Professional services for integration and training generate additional revenue at $200-$500 per hour, while ongoing support and maintenance contracts provide recurring income.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

How do Layer 1 and Layer 2 blockchain projects structure their business models differently?

Layer 1 blockchains prioritize security and decentralization through transaction fees and native token appreciation, while Layer 2 solutions focus on scalability and efficiency through lower fees and specialized services.

Layer 1 blockchain revenue models center on network security and base layer functionality. Transaction fees paid to miners or validators represent the primary revenue stream, with Ethereum generating over $1.5 billion annually through gas fees. Native token appreciation creates value for early adopters and long-term holders as network adoption increases. Staking rewards incentivize network security, with validators typically earning 4-8% annual returns on staked tokens.

Layer 1 platforms also monetize through ecosystem development and partnerships. Projects building on Layer 1 networks often contribute to ecosystem funds, provide grants for infrastructure development, and share revenue through various mechanisms. Solana's ecosystem fund exceeded $100 million in 2025, supporting developers and driving platform adoption. Network governance allows token holders to influence fee structures and protocol upgrades, creating long-term value alignment.

Layer 2 solutions optimize for performance and cost efficiency while inheriting Layer 1 security. Transaction fees remain significantly lower (80%+ reduction compared to Layer 1) while maintaining security guarantees. Bridge operations between Layer 1 and Layer 2 generate revenue through transfer fees and liquidity provision. Specialized services for specific use cases command premium pricing - gaming-focused Layer 2s offer optimized transaction processing for NFT trades and in-game assets.

Layer 2 business models emphasize user experience and application-specific optimization. Rollup technologies like Arbitrum and Optimism process thousands of transactions off-chain before settling on Ethereum, capturing value through efficiency gains. Cross-chain functionality creates additional revenue streams through interoperability services and bridge operations. Some Layer 2s launch their own tokens to capture value beyond transaction fees, creating governance and utility tokens that appreciate with network growth.

What should an investor or entrepreneur evaluate when choosing a blockchain business model to pursue?

Successful blockchain investment and entrepreneurship requires evaluating technical feasibility, market opportunity, tokenomics sustainability, team execution capability, and regulatory compliance to identify models with genuine utility and competitive advantages.

Technical feasibility assessment determines whether blockchain technology provides genuine advantages over existing solutions. Evaluate whether the use case requires blockchain's unique properties - decentralization, immutability, and transparency. Projects solving problems that don't benefit from these characteristics often fail despite technical sophistication. Assess whether the proposed solution can achieve necessary transaction throughput, latency requirements, and cost efficiency compared to traditional alternatives.

Market opportunity analysis involves identifying clear problems with significant demand and willing customers. Successful blockchain businesses address specific pain points like payment inefficiencies (crypto exchanges), financial access (DeFi), or supply chain transparency (enterprise blockchain). Quantify the total addressable market, competitive landscape, and adoption barriers. Projects with billion-dollar market opportunities and clear paths to customer acquisition demonstrate higher success probability.

Tokenomics evaluation requires analyzing supply mechanics, utility design, and value accrual mechanisms. Sustainable token models provide genuine utility beyond speculation, balanced distribution preventing market manipulation, and clear value capture from network growth. Assess whether token holders benefit from platform success through fee sharing, governance rights, or ecosystem participation rewards. Avoid projects with excessive team allocations or unclear utility propositions.

Team and execution capabilities significantly impact project success regardless of technical merit. Evaluate team experience in blockchain development, business execution, and relevant industry expertise. Successful projects typically combine technical excellence with business acumen and regulatory awareness. Assess the development roadmap, partnership strategy, and ability to attract users and capital. Strong teams demonstrate progress through working prototypes, strategic partnerships, and growing communities.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. Idealogic - Best Blockchain Ideas 2025
2. FasterCapital - Blockchain Revenue Model Guide
3. TechBullion - How Blockchain Companies Make Money
4. FourWeekMBA - Blockchain Business Models
5. Dev.to - Blockchain Layers L1 L2 and Rollups
6. OSL Academy - Layer 1 vs Layer 2 Essentials
7. FasterCapital - Blockchain Startup Revenue Strategies
8. FasterCapital - Introduction to Blockchain Revenue Models
9. FourWeekMBA - Blockchain as a Service
10. Investopedia - Blockchain as a Service
11. Blockchain News - Revenue Streams Blockchain Payment
12. Sequence - How Web3 Games Make Money
13. FasterCapital - DeFi Revenue Models
14. AMBCrypto - DeFi Fee Based Rewards 2025
15. Qubit Capital - Blockchain Business Plan Startups
16. DWF Labs - Top DeFi Protocols Revenue Analysis
17. LinkedIn - Game Monetization Strategies
18. Cherry Servers - Web3 Infrastructure Providers
19. Exploding Topics - Blockchain Startups
20. Quartz - Blockchain Startup Analysis
21. Startup Savant - Blockchain Startups to Watch
22. SimpleSwap - DeFi Report 2024-2025
23. Seed Table - Best Blockchain Startups