# Celo L2 Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of transaction fees that is distributed to service providers, such as validators or sequencers. For Celo L2, this metric is currently set to zero. All fees collected from user transactions are classified as protocol revenue, with no additional portion allocated to supply-side participants.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Supply-side fee allocation

- **Purpose**: Determine the portion of user fees distributed to infrastructure operators.
- **Logic**: Supply-side fees are hardcoded to zero. This reflects the economic model of Celo L2, where total transaction fees are equivalent to protocol revenue. No surplus fees are distributed to validators or other service providers beyond the protocol's primary revenue capture.

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

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

Supply-side fees

Blockchains (L2)

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

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

Celo L2

Supply-side fees

Supply-side fees

Chain breakdown