Node operators process transactions and receive token incentives. These independently owned high-spec node machines around the world are connected via Internet Computer Protocol (ICP), creating a self-sovereign network not reliant on any cloud services. Advanced cryptography allows any application or service to be run on the network in a decentralized manner via smart contracts.

The Internet Computer is a decentralized cloud blockchain, where apps can be built fully onchain, using AI, or by coding. Try caffeine.ai & icp.ninja.

ICP tokenholders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). ICP Holders can stake their ICP on the Network Nervous System (NNS), an advanced fully on-chain DAO that facilitates liquid democracy. Staking ICP allows users to submit proposals, vote on proposals, and earn rewards for their participation in governance. Internet Computer's investors include Polychain, Scalar Capital, Amino Capital, etc.

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Internet Computer

# Internet Computer Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total network fees that are paid to supply-side participants (validators, stakers, or network operators) in a blockchain protocol. For Internet Computer Protocol (ICP), this metric is always zero by design. Unlike traditional blockchains where validators or stakers receive fee rewards, Internet Computer's economic model directs all fees toward network operation and security rather than redistributing them to supply-side participants. The calculation tracks total network fees but assigns zero to supply-side fees.

## 2. Data sources

The calculation relies on several data sources to establish the baseline total fees before applying the zero supply-side allocation:

- **Internet Computer burn events**: Scraped data from Dfinity APIs tracking ICP tokens burned to purchase Cycles for computation
- **Internet Computer transaction fees**: Scraped data from Dfinity APIs tracking transaction fees paid in ICP
- **End-of-day price feeds**: CoinGecko price data for ICP token USD conversion
- **Network metadata**: Internet Computer chain identifiers and protocol information

All raw fee data comes from cumulative counters maintained by Internet Computer's native infrastructure and accessed through Dfinity's official APIs.

## 3. Step-by-step calculation

### Component A: ICP burn fees processing
- **Purpose**: Processes ICP tokens burned for Cycles purchases, which represent computation fees
- **Logic**: Extracts raw burn data from Dfinity scraper APIs containing cumulative burn amounts with timestamps. Deduplicates records by selecting the latest entry per day based on insertion timestamp. Normalizes ICP amounts by dividing by 10^8 to account for ICP's 8-decimal precision. Converts cumulative values to daily increments using lag window functions, where each day's burn amount equals current cumulative minus previous day's cumulative value
- **Key fields**: Daily timestamp, ICP burn `amount`, `contract_name` as "ICP burned for Cycles", and chain identifier

### Component B: Transaction fees processing  
- **Purpose**: Processes standard transaction fees paid in ICP for network operations
- **Logic**: Extracts raw transaction fee data from Dfinity scraper APIs containing cumulative fee amounts with timestamps. Applies identical deduplication logic by selecting latest record per day. Normalizes ICP amounts using the same 8-decimal division. Converts from cumulative to daily values using lag functions to calculate daily fee increments
- **Key fields**: Daily timestamp, ICP transaction fee `amount`, `contract_name` as "Transaction fees", and chain identifier

### Component C: Total fees aggregation
- **Purpose**: Combines all Internet Computer fee types into total network fees
- **Logic**: Unions burn fees and transaction fees into a single dataset. Adds protocol metadata including business line as "Blockchain", market sector as "blockchains_l1", and business segment as "blockchain". Converts all ICP amounts to USD using end-of-day CoinGecko price feeds matched by date and token identifier. Sets timestamp grain to daily and standardizes chain identifiers
- **Key fields**: Combined daily `fees` amounts in USD, standardized timestamps, and protocol classification metadata

### Final aggregation
- **Combining components**: Takes the complete total fees dataset with all fee types and amounts calculated in USD
- **Currency conversion**: USD conversion occurs using end-of-day CoinGecko prices for ICP, applied after decimal normalization but before final aggregation
- **Time aggregation**: Data is aggregated to daily boundaries aligned with Internet Computer's native reporting timeframes
- **Final calculation**: Supply-side fees are calculated by taking the total fees structure and setting the `fees_supply_side` value to zero for all records. This reflects Internet Computer's economic model where fees support network infrastructure rather than being distributed to supply-side participants like validators or stakers. The finalization process ensures proper schema validation, fills any date gaps with zeros, and applies chain availability filters.

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

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

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Supply-side fees

Supply-side fees

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