Fraxtal batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Fraxtal is an Ethereum Layer 2 (L2) blockchain built on the OP Stack by Frax Finance. It uses frxETH as the gas token and features a blockspace incentive system called Flox. Fraxtal launched in February 2024.

Frax Finance team owns and governs the protocol. Frax Finance's investors include Dragonfly Capital, Mechanism Capital, Galaxy Digital, etc.

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Fraxtal

# Fraxtal Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction fees generated on Fraxtal that is distributed to service providers. For Fraxtal, this metric is currently set to zero. All fees paid by users are either retained by the protocol as revenue or utilized to cover settlement costs on Ethereum, with no direct distribution to a supply-side layer.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events or instructions.

## 3. Step-by-step calculation

### Component A: Constant value assignment

- **Purpose**: Assign a zero value to the supply-side fees metric.
- **Logic**: The `fees_supply_side` metric is hardcoded to zero. This reflects the current economic structure of the Fraxtal network, where all collected fees are allocated to protocol revenue or utilized for Layer 1 data availability and settlement expenses. No portion of the transaction fees is distributed to external supply-side participants such as liquidity providers or decentralized validators at this time.
- **Key fields**: `fees_supply_side` (set to 0)

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

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

FraxtalFXTL

Supply-side fees

Supply-side fees

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