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

Astar is a collective driving web3 adoption by connecting people through blockchain technology, business innovation, decentralized applications, and seamless digital experiences in the Polkadot ecosystem. Astar was founded by Sota Watanabe and launched in 2021.

ASTR tokenholders own and govern the protocol. Part of the transaction fees is burned (revenue). Astar’s investors include Binance, Polychain Capital, Crypto.com, etc.

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Blockchains (L2)

Astar

# Astar Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that are distributed to network participants who provide infrastructure or services, such as validators, liquidity providers, or other ecosystem contributors. For Astar, this metric is set to zero because all transaction fees are retained by the protocol as revenue rather than being shared with external suppliers. The calculation processes both Layer 1 (Substrate-based) and Layer 2 (EVM-based) transaction fees from raw blockchain events, converts them to USD, and then sets the supply-side portion to zero.

## 2. Data sources

The calculation relies on several key data sources:
- **Astar blockchain events**: Raw event logs from the Astar blockchain containing transaction payment records, EVM execution data, and balance change events
- **Transaction payment events**: Specific `TransactionFeePaid` events from the `transactionPayment` pallet that record L1 transaction fees and tips
- **EVM execution events**: `Executed` events from the `ethereum` pallet that indicate EVM transaction processing and signer identification
- **Balance events**: `Withdraw` and `Deposit` events from the `balances` pallet within the ethereum context that track L2 fee movements
- **Token price feeds**: End-of-day ASTAR token price data from CoinGecko API for USD conversion
- **Chain metadata**: Protocol configuration data for proper decimal handling and chain identification

## 3. Step-by-step calculation

### Component A: Raw event processing
- **Purpose**: Extract and structure raw blockchain events from Astar
- **Logic**: Retrieve all events from Astar blockchain event logs, truncating block timestamps to daily boundaries for aggregation. Events include detailed information such as event method, pallet, event data arrays, extrinsic identifiers, and success status. The processing maintains complete event context including block numbers and event indices for precise tracking.
- **Key fields**: `timestamp`, `event_method`, `event_pallet`, `event_data`, `extrinsic_id`, `success`

### Component B: Layer 1 fee extraction
- **Purpose**: Calculate transaction fees for native Substrate transactions
- **Logic**: Filter events for `transactionPayment` pallet with `TransactionFeePaid` method. Extract transaction fees from the second element of the `event_data` array and transaction tips from the third element. Combine base transaction fees with tips to get total L1 fees per extrinsic. Convert from native wei units to ASTAR tokens by dividing by 10^18.
- **Key fields**: `transaction_fee`, `transaction_tip`, `extrinsic_id`, `chain_id`

### Component C: Layer 2 fee extraction  
- **Purpose**: Calculate transaction fees for EVM-based transactions on Astar
- **Logic**: Process L2 fees through a multi-step approach: First, identify EVM transactions by filtering for `ethereum` pallet `Executed` events and extract signer addresses. Second, find corresponding balance changes by filtering for `balances` pallet events within the ethereum context, capturing both `Withdraw` events (positive fees) and `Deposit` events (negative fees that net out refunds). Third, match signer addresses between execution events and balance events to ensure proper fee attribution to the correct transaction originator. Finally, aggregate net fees per extrinsic by summing positive withdrawals and negative deposits.
- **Key fields**: `signer_address`, `transaction_fee`, `event_method`, `extrinsic_id`

### Component D: Fee consolidation
- **Purpose**: Combine Layer 1 and Layer 2 fees into a unified dataset
- **Logic**: Union Layer 1 fees from substrate transactions with Layer 2 fees from EVM transactions. Apply consistent formatting with daily timestamps, chain identifiers set to respective values (astar for L1, astarevm for L2), and product identification as Astar Substrate. Ensure proper decimal normalization is maintained across both fee types.
- **Key fields**: `fees`, `chain_id`, `product_id`, `timestamp_grain`

### Component E: USD conversion
- **Purpose**: Convert native ASTAR token fees to USD values
- **Logic**: Apply end-of-day ASTAR token prices from CoinGecko API to convert native fee amounts to USD. Use the `convert_to_usd_cg` macro with coingecko_id set to 'astar' for proper price lookup. Handle missing or invalid price data gracefully with appropriate fallback mechanisms.
- **Key fields**: `fees_usd`, `coingecko_id`, `daily_timestamp`

### Final aggregation
- **Combining components**: All fee data flows through the consolidation layer where L1 and L2 fees are combined, then converted to USD values in the metrics layer
- **Supply-side calculation**: Set supply-side fees to zero for all records, indicating that Astar retains all transaction fees as protocol revenue rather than distributing them to external suppliers or validators
- **Currency conversion**: Native ASTAR fees are converted to USD using end-of-day CoinGecko price feeds with proper error handling for missing price data
- **Time aggregation**: All fees are aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: The final supply-side fees metric equals zero for all time periods and chains, while total fees represent the complete fee collection that becomes protocol revenue

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

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

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Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown