# Flow EVM Supply-side fees Methodology

## 1. Overview

The share of transaction fees generated on Flow EVM that is distributed to the network's service providers is measured by Supply-side fees. All fees paid by users for transaction execution within the Flow EVM environment are allocated to the validators of the Flow network. These fees represent the primary compensation for the infrastructure providers responsible for securing the execution environment and processing transactions.

## 2. Data sources

- **Blockchain events**: Flow EVM transactions, covering Flow EVM
- **External data**: End-of-day price feeds for the native Flow asset

## 3. Step-by-step calculation

### Component A: Flow EVM transaction fee extraction

- **Purpose**: Total fees paid by users for transactions on Flow EVM are captured.
- **Logic**: Transaction data from Flow EVM is parsed to identify gas usage and gas prices. The total fee for each transaction is calculated by multiplying the gas used by the gas price. These amounts are denominated in the native Flow asset.
- **Key fields**: `gas_used` and `gas_price` from Flow EVM transactions.

### Component B: USD conversion and normalization

- **Purpose**: Fee amounts are converted into a standardized USD value for reporting.
- **Logic**: Native fee amounts are normalized by decimal precision. These values are multiplied by end-of-day price feeds for the Flow asset to determine the USD value. Data is aggregated with daily granularity using UTC day boundaries.
- **Key fields**: `block_timestamp` (timing) and `token_address` (asset identification).

### Component C: Supply-side attribution

- **Purpose**: The portion of fees Flowing to service providers is determined.
- **Logic**: A 100% attribution rate is applied to the calculated fees for Flow EVM. This reflects the protocol's architecture where all fees generated by the EVM-compatible layer are directed to the validators of the Flow network.
- **Key fields**: `product_id` (filtered for Flow EVM).

*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)

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

Flow is a smart contract platform for decentralized applications (a blockchain). Flow was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and launched in 2019.

FLOW holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Flow’s investors include a16z, Coatue, Coinfund, Fabric Ventures, etc.

Flow EVM

Supply-side fees

Supply-side fees

Chain breakdown