# Arc Supply-side fees Methodology

## 1. Overview

The share of fees distributed to service providers is measured by supply-side fees. For the Arc network, transaction gas fees are fully allocated to validators as supply-side fees, as the validator's fee-recipient address receives the full block fee and no portion is burned. For the StableFX product, supply-side fees are set to zero because external liquidity providers are not utilized and fees are paid by makers rather than earned by them.

## 2. Data sources

- **Blockchain events**: Transaction execution data (including gas used and effective gas price) and `TradeStatusChanged`, `TakerRefunded`, and `MakerRefunded` events from `FxEscrow` contracts, covering the Arc chain

## 3. Step-by-step calculation

### Component A: Arc gas fee calculation

- **Purpose**: Capture transaction gas fees paid to validators on the Arc chain
- **Logic**: Transaction execution data is parsed from the Arc chain. Gas fees are calculated by multiplying the gas used by the effective gas price. Since gas is paid in USD Coin and gas prices are scaled, the resulting fee amounts are normalized by decimal precision to yield values directly in USD. Because the entirety of transaction gas fees is received by validators and no fees are burned, 100% of these fees are allocated to the supply side.
- **Key fields**: `gas_used`, `gas_price`

### Component B: StableFX supply-side fee allocation

- **Purpose**: Determine the supply-side fee share for the StableFX product
- **Logic**: Supply-side fees for StableFX are set to a constant value of zero. This allocation reflects that external liquidity providers are not utilized by the StableFX product, and fees are paid by makers rather than earned by them.
- **Key fields**: None

### Component C: Final aggregation and normalization

- **Purpose**: Combine supply-side fees across all Arc products
- **Logic**: Supply-side fees from Arc gas fees and StableFX are aggregated on a daily basis. Daily boundaries are defined using UTC timestamps.
- **Key fields**: `timestamp`, `fees_supply_side`

*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 (L1)

Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

Arc

Supply-side fees

Supply-side fees

Chain breakdown