Validators process transactions and receive fees from users (supply-side fees).

Algorand is a smart contract platform for decentralized applications (a blockchain). Algorand was founded by Silvio Micali and launched in 2018.

ALGO holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Algorand's investors include Union Square Ventures, Multicoin Capital, Pillar, etc.

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Algorand

# Algorand Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction fees that is distributed to service providers, such as validators or participation nodes. This metric represents the compensation paid to network participants for securing the blockchain and processing transactions. For Algorand, this metric is set to zero because transaction fees are not distributed as rewards to network participants; instead, fees are directed to a protocol-governed fee sink address.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events or instructions.

## 3. Step-by-step calculation

### Component A: Supply-side fee assignment

- **Purpose**: Assign the portion of fees allocated to network service providers.
- **Logic**: A constant value of zero is assigned to the supply-side fees metric. This reflects the Algorand protocol architecture where transaction fees are gathered into a fee sink rather than being distributed to participation nodes or validators as supply-side revenue. Values are generated for the Algorand network with daily granularity using UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

AlgorandALGO

Supply-side fees

Supply-side fees

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