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.

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Celo

# Celo Supply-side fees Methodology

## 1. Overview

Celo L1 (legacy) supply-side fees represent the portion of transaction fees that goes to network validators rather than the protocol treasury. The metric is calculated as the difference between total fees paid by users and revenue captured by the protocol (supply-side fees = total fees - protocol revenue). This calculation varies significantly between Celo L1 (legacy) L1 (pre-March 26, 2025) and Celo L1 (legacy) L2 (post-March 26, 2025), with Celo L1 (legacy) L2 having no supply-side fees since all gas fees go to protocol revenue.

## 2. Data sources

The calculation relies on several key data sources:
- **Celo L1 (legacy) blockchain transaction records**: Individual transaction data including gas usage, gas prices, effective gas prices, fee currencies, and transaction metadata
- **Celo L1 (legacy) blockchain block records**: Block-level data containing base fee per gas information required for Celo L1 (legacy) L1 revenue calculations
- **End-of-day token price feeds**: USD conversion rates for Celo L1 (legacy) native tokens and other fee currencies used in transactions
- **Token metadata**: Information about token decimals and addresses to properly handle different fee payment currencies

## 3. Step-by-step calculation

### Component A: Gas fee calculation
- **Purpose**: Calculate total fees paid by users for each transaction
- **Logic**: Extract transaction data from Celo L1 (legacy) blockchain records including gas usage, gas prices, and fee currencies. For transactions before March 26, 2025, multiply `gas_used` by `effective_gas_price` to get the total gas fee. For transactions after March 26, 2025 on Celo L1 (legacy) L2, multiply `gas_used` by `gas_price` and divide by 1e18 for proper decimal handling. Handle fee currency by defaulting to Celo L1 (legacy) native token address when `fee_currency` is null
- **Key fields**: `gas_used`, `effective_gas_price`, `gas_price`, `fee_currency`, `block_timestamp`

### Component B: Base fee calculation (Celo L1 (legacy) L1 only)
- **Purpose**: Calculate the base fee portion that becomes protocol revenue on Celo L1 (legacy) L1
- **Logic**: Join transaction data with corresponding block data to access `base_fee_per_gas` information. Multiply transaction `gas_used` by the block's `base_fee_per_gas` (already normalized by dividing by 10^18) to determine the base fee portion. This component only applies to transactions before March 26, 2025
- **Key fields**: `gas_used`, `base_fee_per_gas`, `block_number`, `block_timestamp`

### Component C: Revenue determination
- **Purpose**: Identify the portion of fees that goes to protocol revenue
- **Logic**: For Celo L1 (legacy) L1 (pre-March 26, 2025), protocol revenue equals the calculated base fees from Component B. For Celo L1 (legacy) L2 (post-March 26, 2025), all gas fees from Component A become protocol revenue since there are no validator rewards on the L2
- **Key fields**: `base_fee` (for Celo L1 (legacy) L1), `gas_fee` (for Celo L1 (legacy) L2)

### Final aggregation
- **Combining components**: Calculate supply-side fees by subtracting protocol revenue from total gas fees for each transaction. For Celo L1 (legacy) L1: supply_side_fees = gas_fees - base_fees. For Celo L1 (legacy) L2: supply_side_fees = gas_fees - gas_fees = 0
- **Currency conversion**: Convert all fee amounts to USD using end-of-day price feeds matched by token address and transaction date. Apply appropriate decimal corrections based on token metadata
- **Time aggregation**: Truncate timestamps to daily boundaries and aggregate all fees by day, product (Celo L1 (legacy) vs Celo L1 (legacy) L2), and chain
- **Final calculation**: Sum daily supply-side fees in USD, ensuring complete time series by filling missing days with zeros. Apply chain availability filtering to exclude periods when data collection was not active

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

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

CeloCELO

Supply-side fees

Supply-side fees

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