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Blockchains (L1)

Berachain

# Berachain Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that goes to block validators on the Berachain network. This metric captures validator rewards following EIP-1559 fee structure, where fees are split between priority fees (paid to validators) and base fees (burned by the network). The calculation adapts to different transaction types to accurately measure validator compensation from network activity.

## 2. Data sources

The calculation relies on several key data sources:
- **Berachain block data**: Native blockchain block records containing block timestamps, block numbers, and base fee per gas information for EIP-1559 fee calculations
- **Berachain transaction data**: Complete transaction records including transaction hashes, sender and receiver addresses, gas usage amounts, gas prices, and priority fee information
- **End-of-day price feeds**: Token price data for converting native BERA token amounts to USD values
- **Token metadata**: Information about the native BERA token including its standard address representation and decimal precision

## 3. Step-by-step calculation

### Component A: Block data preparation
- **Purpose**: Extract essential block-level information needed for fee calculations
- **Logic**: Raw Berachain block data is processed to extract block timestamps, block numbers, and base fee per gas values. The base fee per gas represents the minimum fee required per gas unit under EIP-1559, which gets burned rather than paid to validators
- **Key fields**: Block timestamps for daily aggregation, block numbers for joining with transaction data, and `base_fee_per_gas` amounts for calculating burned fees

### Component B: Transaction data enrichment  
- **Purpose**: Combine transaction details with corresponding block information to enable comprehensive fee calculations
- **Logic**: Berachain transaction records are joined with block data using block numbers as the linking key. This enrichment adds base fee information to each transaction while preserving transaction-specific details like gas usage, gas prices, and priority fees. The native BERA token is identified using the hardcoded address `0x6969696969696969696969696969696969696969`
- **Key fields**: Transaction hashes for unique identification, `gas_used` for actual consumption, `gas_price` for total fee rate, `max_priority_fee_per_gas` for validator tip rate, and inherited `base_fee_per_gas` from block data

### Component C: Gas fee calculation
- **Purpose**: Calculate the three components of transaction fees in native BERA tokens
- **Logic**: For each transaction, three fee amounts are calculated by multiplying gas usage with respective fee rates and converting from wei to BERA tokens. The total `fee_amount` equals gas used multiplied by gas price divided by 1e18. The `priority_fee_amount` equals gas used multiplied by priority fee per gas divided by 1e18. The `base_fee_amount` equals gas used multiplied by base fee per gas divided by 1e18. All amounts are aggregated to daily timestamps using day-level truncation
- **Key fields**: `fee_amount` representing total transaction cost, `priority_fee_amount` for validator tips, and `base_fee_amount` for burned fees

### Component D: Supply-side fee determination
- **Purpose**: Identify the portion of transaction fees that validators receive based on transaction type
- **Logic**: The supply-side fee calculation adapts to EIP-1559 transaction structure using conditional logic. For EIP-1559 transactions where priority fee is not null, the supply-side fee equals the `priority_fee_amount` which represents the tip paid directly to validators. For legacy and EIP-2930 transactions where priority fee is null, the supply-side fee is calculated as the difference between `fee_amount` and `base_fee_amount`, representing the validator portion after removing the burned base fee
- **Key fields**: `fees_supply_side` as the final validator fee amount, determined through coalesce logic prioritizing priority fees over calculated differences

### Final aggregation
- **Combining components**: The supply-side fee amounts are maintained at the transaction level with daily timestamp aggregation, preserving granular transaction details while enabling daily summation
- **Currency conversion**: Native BERA token amounts are converted to USD using end-of-day price feeds through automated conversion processes that handle decimal precision
- **Time aggregation**: Transaction timestamps are truncated to daily boundaries, creating consistent daily reporting periods aligned with standard blockchain analytics practices  
- **Final calculation**: The final metric represents daily aggregated validator fees in USD, calculated as the sum of all supply-side fees from transactions processed on each day, with any missing days filled with zero values to ensure complete time series data

*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

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