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

Gnosis Chain is a smart contract platform for decentralized applications (a blockchain). Gnosis was founded by Martin Köppelmann and Stefan George and launched in 2015.

GNO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). 

governance

github

twitter

discord

etherscan

website

Blockchains (L1)

Gnosis

# Gnosis Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that goes to Gnosis validators and block producers, excluding fees that are burned by the protocol. This metric answers the business question: "How much revenue do Gnosis network validators earn from processing transactions?" The calculation subtracts burned fees (base fees and blob fees) from total transaction fees to isolate the validator compensation portion.

## 2. Data sources

- **Gnosis transaction records**: Complete transaction data including gas usage metrics, effective gas prices, blob gas information, and transaction types
- **Gnosis block records**: Block-level data containing base fee per gas information and gas consumption metrics
- **End-of-day price feeds**: WXDAI token price data used for USD conversion, since Gnosis uses WXDAI (address `0xe91d153e0b41518a2ce8dd3d7944fa863463a97d`) as the native gas token

## 3. Step-by-step calculation

### Component A: Total fees calculation
- **Purpose**: Calculate the total amount of fees paid by users for transaction execution
- **Logic**: Process all Gnosis transactions and sum gas fees by multiplying `gas_used` by `effective_gas_price` for regular transactions. For type 3 transactions (EIP-4844 blob transactions), also include blob fees calculated as `blob_gas_used` multiplied by `blob_gas_price`. Gas prices are converted from wei to native units by dividing by 10^18. Both regular and blob fees are combined into a single daily total
- **Key fields**: `gas_used`, `effective_gas_price`, `blob_gas_used`, `blob_gas_price`, `transaction_type`

### Component B: Burned fees calculation  
- **Purpose**: Calculate the portion of fees that are burned by the protocol rather than paid to validators
- **Logic**: Combine base fees and blob fees that are burned. Base fees are calculated from block data by multiplying `gas_used` by `base_fee_per_gas` for each block. Blob fees are calculated from type 3 transactions by multiplying `blob_gas_used` by `blob_gas_price`. Base fee data comes from block records while blob fee data comes from transaction records, both aggregated daily
- **Key fields**: `base_fee_per_gas`, `gas_used` (from blocks), `blob_gas_used`, `blob_gas_price` (from transactions)

### Final aggregation
- **Combining components**: The burned fees component is subtracted from total fees using a union operation where revenue values are negated and then summed with positive fee values
- **Currency conversion**: Both fee components are converted to USD using end-of-day WXDAI token prices, with decimal correction applied during the conversion process
- **Time aggregation**: All calculations are performed with daily time boundaries using timestamp truncation to day granularity
- **Final calculation**: Supply-side fees equals total transaction fees minus burned fees, representing the net amount that flows to Gnosis validators and block producers as compensation for network validation services

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

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

GnosisGNO

Supply-side fees

Supply-side fees

Competitive landscape