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

Cosmos Hub is an interoperability & security platform for blockchains and applications. Cosmos was founded by Ethan Buchman & Jae Kwon and launched in 2019.

ATOM holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Cosmos’s investors include Paradigm, IOSG Ventures, 1confirmation, etc.

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Cosmos Hub

# Cosmos Hub Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total fees that flows to validators and stakers (the supply side) in the Cosmos Hub network. This metric combines regular transaction fees with Atom Economic Zone (AEZ) fees, then applies a time-based fee split based on governance proposals. The calculation accounts for changes in the community pool tax rate, where the supply side received 98% of fees normally, but only 90% during a specific governance period from December 2022 to May 2025.

## 2. Data sources

The calculation uses several raw blockchain and external data sources:
- **Cosmos Hub transaction records**: Raw transaction data containing transaction fees paid in ATOM
- **Cosmos Hub message events**: Blockchain event logs capturing `transfer` events, specifically tracking AEZ fee payments to the hub's recipient address
- **Token metadata**: Token information including decimal precision for proper normalization of fee amounts
- **End-of-day token price feeds**: CoinGecko price data for ATOM and other AEZ tokens to enable USD conversion

## 3. Step-by-step calculation

### Component A: Regular transaction fees
- **Purpose**: Calculates standard transaction fees paid by users for Cosmos Hub transactions
- **Logic**: Extracts transaction fee amounts from Cosmos Hub transaction records, normalizes the fees by dividing by 10^6 to account for ATOM's 6 decimal places, truncates timestamps to daily boundaries, and aggregates the total fees per day using sum aggregation
- **Key fields**: `transaction_fee` (raw fee amount), `block_timestamp` (transaction timing), with final output as daily aggregated fees denominated in ATOM

### Component B: AEZ (Atom Economic Zone) fees  
- **Purpose**: Captures fees paid by other chains in the AEZ that use Cosmos Hub validators for security services
- **Logic**: Filters message events for `transfer` event types where the recipient address equals `cosmos1ap0mh6xzfn8943urr84q6ae7zfnar48am2erhd` (the hub's fee recipient), parses the amount field using regex to extract numeric values and token denominations from concatenated strings, maps token denominations to CoinGecko IDs using a hardcoded mapping table, normalizes amounts by token-specific decimal places, and aggregates daily fees by token type
- **Key fields**: `event_attributes` (containing amount and recipient data), `token_address` (parsed token denomination), `amount` (extracted numeric fee amount)

### Component C: Total fees aggregation
- **Purpose**: Combines regular transaction fees and AEZ fees into a unified daily fee total
- **Logic**: Unions the regular transaction fees (denominated in ATOM) with AEZ fees (denominated in various AEZ tokens), maintains separate records for each token type while preserving daily timestamp boundaries and chain identification
- **Key fields**: `timestamp` (daily boundary), `chain_id` ('cosmos'), `coingecko_id` (token identifier), `fees` (daily aggregated amount)

### Component D: USD conversion
- **Purpose**: Converts all fee amounts from native token denominations to USD values
- **Logic**: Applies end-of-day token prices from CoinGecko feeds using the token's CoinGecko ID, multiplies the native token fee amounts by the corresponding USD price for the same day, handles multiple token types including ATOM and various AEZ tokens like ELYS, STRD, and NTRN
- **Key fields**: `coingecko_id` (price lookup key), `fees` (converted to USD amounts)

### Final aggregation
- **Combining components**: The USD-converted fees from all sources are aggregated into daily totals for the entire Cosmos Hub ecosystem
- **Currency conversion**: All fees are converted to USD using end-of-day CoinGecko price feeds matched by date and token CoinGecko ID
- **Time aggregation**: Daily boundaries are maintained using timestamp truncation to day level
- **Final calculation**: The supply-side portion is calculated by multiplying total daily fees by a time-dependent fee split percentage. From December 20, 2022 to May 2, 2025, the supply side receives 90% of fees (multiplied by 0.9). For all other time periods, the supply side receives 98% of fees (multiplied by 0.98). This reflects governance proposal changes to the community pool tax rate, where higher community pool taxes mean lower supply-side portions.

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

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

Cosmos HubATOM

Supply-side fees

Supply-side fees

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