# Injective EVM Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction fees distributed to validators on Injective EVM. These fees represent the compensation provided to network participants for processing transactions and maintaining the security of the infrastructure. On Injective EVM, the fee structure follows an EIP-1559 model where the base fee is burned, and only the priority fees (tips) are allocated to the supply-side participants.

## 2. Data sources

- **Blockchain events**: Transaction and block data from Injective EVM
- **External data**: End-of-day price feeds for the native INJ asset

## 3. Step-by-step calculation

### Component A: Injective EVM transaction data parsing

- **Purpose**: The individual components of the transaction fee structure are identified.
- **Logic**: Gas usage and effective gas price data are extracted from transaction records. These records are joined with block data to retrieve the base fee per gas associated with each transaction's specific block.
- **Key fields**: `gas_used`, `effective_gas_price`, and `base_fee_per_gas`.

### Component B: Injective EVM priority fee calculation

- **Purpose**: The portion of fees allocated to validators is isolated from the burned protocol revenue.
- **Logic**: The base fee per gas is subtracted from the effective gas price to determine the priority fee per unit of gas. This value is multiplied by the gas used for each transaction to calculate the total priority fee, which is classified as the supply-side fee.
- **Key fields**: `effective_gas_price`, `base_fee_per_gas`, and `gas_used`.

### Component C: USD conversion and aggregation

- **Purpose**: Native asset values are standardized into USD at a daily granularity.
- **Logic**: Individual transaction-level priority fees are aggregated into daily totals. These native asset amounts are normalized by decimal precision and multiplied by end-of-day price feeds for the native INJ asset. Daily totals are aligned with UTC day boundaries.
- **Key fields**: `priority_fee` and asset price.

*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 transactions fees (supply-side fees).

Injective is a smart contract platform for decentralized finance applications (a blockchain) and an orderbook exchange protocol. Injective was founded by Eric Chen, Albert Chon etc. and launched in 2020. Note that this dashboard only tracks Injective's blockchain business.

INJ holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue) via Burn Auctions. Injective's investors include Binance, Jump Crypto, Mark Cuban, etc.

Injective EVM

Supply-side fees

Supply-side fees

Chain breakdown