Jurors receive arbitration fees for reviewing evidence and voting coherently on disputes (supply-side fees).

Kleros is a third party arbitration and dispute resolution system built on Ethereum and Gnosis. Kleros was founded by Federico Ast, Clémenet Lesaege and Nicolas Wagner, and was launched in 2019.

PNK tokenholders own and govern the protocol. They do not currently take a cut of the total fees taken by coherent jurors (revenue).

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Infrastructure

Kleros

# Kleros Supply-side fees Methodology

## 1. Overview

The Kleros supply side fees metric measures the total USD value of arbitration fees collected by the Kleros decentralized court protocol on a daily basis. This metric tracks fees paid by users for dispute resolution services, representing the revenue flowing to the protocol's supply side. The calculation aggregates fee payments made in multiple tokens (ETH, PNK, xDAI) across Ethereum and Gnosis chains, converts them to USD, and presents daily totals.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Kleros smart contract events**: Parsed `TokenAndETHShift` events emitted by KlerosLiquid contracts on Ethereum and Gnosis chains
- **Blockchain event logs**: Ethereum and Gnosis blockchain event logs containing arbitration fee payment transactions
- **Token metadata**: Token decimal specifications for ETH, PNK, and xDAI tokens
- **End-of-day price feeds**: Daily USD price data for ETH, PNK, and xDAI tokens used for currency conversion
- **Chain configuration data**: Availability and filtering rules for different blockchain networks

## 3. Step-by-step calculation

### Component A: Raw fee event extraction
- **Purpose**: Extract arbitration fee payments from Kleros smart contract events
- **Logic**: Parse `TokenAndETHShift` events from KlerosLiquid contracts on Ethereum and Gnosis chains. For each event, extract both ETH fee amounts from the `ETHAmount` field and PNK token fee amounts from the `tokenAmount` field. Filter out removed or invalid events and exclude PNK amounts equal to zero. Apply business classification labels including "Decentralized Court" as business line, "infrastructure" as market sector, and "other" as business segment
- **Key fields**: Block timestamp for timing, transaction hash and log index for uniqueness, contract address, `ETHAmount` for ETH fees, `tokenAmount` for PNK token fees, token addresses for ETH (WETH), xDAI, and PNK

### Component B: Daily fee aggregation  
- **Purpose**: Group fee events into daily totals by chain and token
- **Logic**: Truncate block timestamps to day boundaries and group fee amounts by day, chain, and token address. Sum all fee amounts within each group to create daily totals for each token type on each chain
- **Key fields**: Daily timestamp boundary, chain identifier, token address, aggregated `fees` amount

### Component C: USD conversion and decimal correction
- **Purpose**: Standardize all fee amounts to USD values with correct decimal places
- **Logic**: Apply USD conversion using end-of-day price feeds for each token type. Correct for token decimal specifications to ensure accurate value representation. Convert ETH, PNK, and xDAI amounts to their proper USD equivalents based on daily exchange rates
- **Key fields**: USD-converted `fees` amount, corrected decimal values

### Final aggregation
- **Combining components**: Daily fee totals from all chains and tokens are combined into a unified dataset with standardized USD values
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds applied at the daily level
- **Time aggregation**: Data aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: The supply side fees metric equals the total USD value of arbitration fees collected each day across all supported chains and tokens, with zero-filling applied for days with no fee activity and chain availability filtering applied to the final results

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

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

KlerosPNK

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown