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

BNB Chain is a smart contract platform for decentralized applications (a blockchain). BNB Chain was founded by Changpeng Zhao and launched in 2020.

BNB holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue).

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BNB Chain

# BNB Chain Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that goes to network validators and other supply-side participants, after deducting fees that are permanently burned (removed from circulation). For the BSC ecosystem, this metric calculates the net compensation received by validators by subtracting burned fees from total transaction fees paid by users. This answers the business question: "How much are network validators earning from user activity after accounting for fee burning mechanisms?"

## 2. Data sources

- **BSC transaction records**: Complete transaction data including gas usage, gas prices, and blob gas information
- **opBNB transaction records**: Layer 2 transaction data with both L1 and L2 gas components, including fee scalars
- **BSC ValidatorSet burn events**: Parsed `feeBurned` events from the BSC ValidatorSet contract tracking permanently destroyed BNB
- **End-of-day price feeds**: Daily BNB and WBNB token prices for USD conversion
- **Token metadata**: Decimal precision information for accurate currency conversions

## 3. Step-by-step calculation

### Component A: Total fees calculation
- **Purpose**: Calculate the total fees paid by users across BSC and opBNB networks
- **Logic**: For BSC transactions, multiply `gas_used` by `effective_gas_price` and add any `blob_gas_used` multiplied by `blob_gas_price`. For opBNB transactions, calculate L2 gas fees by multiplying `gas_used` by `gas_price`, and L1 gas fees by multiplying `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar`. Convert all amounts from wei to native token units by dividing by 10^18. Aggregate daily by summing all transaction fees within each 24-hour period.
- **Key fields**: `gas_used`, `effective_gas_price`, `blob_gas_used`, `blob_gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: Burned fees calculation  
- **Purpose**: Calculate fees that are permanently removed from circulation and do not compensate validators
- **Logic**: Extract BNB burn amounts from BSC ValidatorSet `feeBurned` events, which represent fees permanently destroyed by the protocol. For opBNB, include both L1 and L2 gas fees as revenue (burned fees) since they represent value capture by the protocol. Aggregate daily by summing all burned amounts within each 24-hour period.
- **Key fields**: `amount` from burn events, combined L1 and L2 gas fees from opBNB transactions

### Component C: Currency conversion
- **Purpose**: Convert native token amounts to USD for standardized reporting
- **Logic**: Apply end-of-day BNB/WBNB price feeds to convert all fee amounts to USD. Use WBNB address `0xbb4cdb9cbd36b01bd1cbaebf2de08d9173bc095c` as the price reference token for BSC fees. Handle decimal precision corrections during the conversion process.
- **Key fields**: Daily token prices, `token_address` for price matching

### Final aggregation
- **Combining components**: Union total fees with negated burned fees (revenue), where burned fees are subtracted by including them as negative values in the sum
- **Currency conversion**: Apply USD conversion after combining components but before final aggregation
- **Time aggregation**: Group by daily timestamp boundaries, chain ID, and product ID
- **Final calculation**: Sum all fee components within each group, where the formula effectively becomes: Total fees + (-Burned fees) = Supply-side fees. Fill missing dates with zero values to maintain 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

Supply-side fees

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