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.

governance

github

twitter

discord

website

Blockchains (L1)

Flow

# Flow Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total fees that goes to network validators and infrastructure providers. For Flow, this metric accounts for two distinct blockchain environments with different economic models: Flow (L1) and Flow EVM (L2-like). Flow uses an "inflation offset" model where fees primarily serve as revenue/deflation mechanism rather than validator compensation, while Flow EVM operates more like a traditional L2 where all fees go to the underlying L1 validators.

## 2. Data sources

- **Flow blockchain transaction records**: Flow L1 transaction data containing fee amounts paid by users
- **Flow EVM blockchain transaction records**: Flow EVM transaction data with gas usage and pricing information  
- **Flow staking reward event logs**: Parsed `RewardsPaid` and `DelegatorRewardsPaid` events that provide context for the economic model
- **End-of-day FLOW token price feeds**: Price data from CoinGecko for USD conversion of FLOW-denominated fees

## 3. Step-by-step calculation

### Component A: Flow supply-side fees
- **Purpose**: Calculate the portion of Flow fees that goes to validators (which is zero due to the inflation offset model)
- **Logic**: Extract all Flow L1 transaction records and aggregate the `fee_amount` field by day. Convert these native FLOW fees to USD using end-of-day price feeds from CoinGecko. Apply Flow's economic model logic by setting supply-side fees to zero, since Flow uses an "inflation offset" model where fees are treated as revenue/deflation mechanism rather than validator compensation
- **Key fields**: `fee_amount` from transaction records, `timestamp` for daily aggregation, `payer` for transaction attribution

### Component B: Flow EVM supply-side fees  
- **Purpose**: Calculate Flow EVM gas fees that go to Flow validators (100% of fees)
- **Logic**: Extract Flow EVM transaction records containing `gas_used` and `gas_price` fields. Calculate total gas fees using the formula gas used multiplied by gas price, divided by 1e18 to account for 18-decimal precision. Aggregate these fees daily and convert to USD using the standard conversion macro. Set supply-side fees to 100% of total fees since all Flow EVM fees flow to Flow validators
- **Key fields**: `gas_used` and `gas_price` for fee calculation, `token_address` for FLOW token identification (0xd3bf53dac106a0290b0483ecbc89d40fcc961f3e)

### Final aggregation
- **Combining components**: Union the Flow supply-side fees (always zero) with Flow EVM supply-side fees (100% of Flow EVM fees) to create a combined dataset
- **Currency conversion**: Flow EVM fees use automated USD conversion macro while Flow fees are manually converted by multiplying native FLOW amounts with end-of-day price feeds
- **Time aggregation**: All fees are aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: The final supply-side fee value equals zero for Flow transactions plus the full USD value of Flow EVM gas fees, reflecting Flow's unique dual-chain economic model where L1 fees are treated as revenue while L2 fees compensate L1 validators

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

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

FlowFLOW

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown