How Is the Price-to-Earnings (P/E) Ratio Adapted for Crypto Valuation?

The traditional P/E ratio is adapted for crypto by replacing "Earnings" with "Protocol Earnings" or "Protocol Revenue Accruing to Token Holders." This is calculated as the total protocol fees or revenue that is used for buybacks, burns, or distributed as dividends/rewards, divided by the token's market price. This ratio is difficult to calculate accurately for many utility tokens, but it is a key metric for security tokens and protocols with clear fee-sharing mechanisms.