Validators process transactions and receive fees from users (supply-side fees). DA costs for users are reflected in the transactions fees paid.

Celestia is a proof of stake blockchain optimized for data availability (DA). Celestia was founded by Mustafa Al-Bassam, etc. and launched in 2023.

TIA holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Celestia's investors include Polychain Capital, Placeholder, Coinbase Ventures, etc.

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Celestia

# Celestia Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total network fees that are distributed to validators, stakers, and other network participants who provide infrastructure services to the Celestia blockchain. This metric is calculated as total fees minus protocol revenue (community tax), showing how much value flows to the supply side of the network rather than to the protocol treasury. The calculation follows the formula: supply-side fees = total fees - protocol revenue.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Celestia transaction records**: Raw blockchain transaction data containing transaction fees and tips paid by users
- **End-of-day price feeds**: TIA token prices from CoinGecko API for USD conversion
- **Network parameters**: Celestia's community tax rate (2%) as documented in network governance parameters

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract and process individual transaction fees from raw Celestia blockchain data
- **Logic**: Parse each transaction record to extract `transaction_fee` and `transaction_tip` values. Convert these values from micro-TIA units to TIA by dividing by 10^6 (1,000,000). Filter out failed transactions by excluding records where `transaction_fee` is null, as these represent failed transactions that didn't actually pay fees
- **Key fields**: `transaction_fee` and `transaction_tip` (both converted from micro-TIA to TIA), `block_timestamp` for temporal aggregation

### Component B: Daily fee aggregation
- **Purpose**: Aggregate individual transaction fees into daily totals
- **Logic**: Group all processed transactions by day using `block_timestamp` truncated to day boundaries. Sum all `transaction_fee` values within each day to get total daily fees paid on the Celestia network. Maintain chain identifier as 'celestia' and coingecko identifier for price conversion
- **Key fields**: Daily aggregated `fees` in TIA, `timestamp` (day boundaries), `chain_id`, `coingecko_id`

### Component C: USD conversion
- **Purpose**: Convert TIA-denominated fees to USD values
- **Logic**: Join daily aggregated TIA fees with end-of-day TIA price data from CoinGecko. Multiply daily fee amounts by the corresponding end-of-day TIA price to get USD-denominated values. Apply standard metric finalization including data validation and gap-filling with zeros where no transactions occurred
- **Key fields**: `fees` converted to USD, maintaining timestamp and chain identifiers

### Component D: Protocol revenue calculation
- **Purpose**: Calculate the portion of fees that goes to the protocol treasury
- **Logic**: Apply Celestia's community tax rate of 2% to the total fees. This represents protocol revenue that gets directed to the community treasury rather than to validators and stakers. The 2% rate is a network parameter defined in Celestia's governance
- **Key fields**: `revenue` calculated as `fees * 0.02`

### Final aggregation
- **Combining components**: Combine total fees (positive contribution) and protocol revenue (negative contribution) using a union operation. The fees component adds to supply-side fees while revenue subtracts from it, representing the portion that doesn't go to network participants
- **Currency conversion**: All calculations are performed in USD after converting TIA values using end-of-day CoinGecko prices
- **Time aggregation**: Data is aggregated at daily boundaries using day-truncated timestamps
- **Final calculation**: Supply-side fees = total fees - protocol revenue. This is computed by summing the positive fees contribution and the negative revenue contribution (fees + (-revenue)) to arrive at the final supply-side fees amount that represents value flowing to validators, stakers, and other network infrastructure providers

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

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

CelestiaTIA

Supply-side fees

Supply-side fees

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