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

Kusama is a security & interoperability platform for blockchains and applications. Kusama was founded by Gavin Wood and launched in 2019.

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

github

twitter

discord

etherscan

website

Blockchains (L1)

Kusama

# Kusama Supply-side fees Methodology

## 1. Overview

Supply-side fees for Kusama represent the portion of transaction fees that are allocated to network validators and infrastructure providers. This metric calculates 20% of total transaction fees paid on the Kusama blockchain, converted to USD. It measures the daily revenue flowing to the supply side of the network (validators, collators, and other infrastructure providers) as compensation for securing and maintaining the blockchain.

## 2. Data sources

- **Kusama blockchain events**: Parsed `TransactionFeePaid` events from Kusama blockchain containing fee amounts and tip payments
- **Token metadata**: KSM token symbol and decimal precision (12 decimal places) for proper unit conversion
- **External price data**: End-of-day price feeds from CoinGecko for KSM token USD conversion

## 3. Step-by-step calculation

### Component A: Fee event extraction
- **Purpose**: Extracts all transaction fee payments from Kusama blockchain
- **Logic**: Filters Kusama blockchain events for `TransactionFeePaid` event method. Each event contains the base fee amount and tip amount paid for transaction execution. Events are deduplicated by block timestamp, block number, extrinsic hash, and event index to ensure no double-counting. KSM amounts are converted from raw blockchain format by dividing by 1e12 to account for the token's 12 decimal places.
- **Key fields**: `amount` (base transaction fee), `tip` (additional payment to validators), `block_timestamp`, `extrinsic_hash`

### Component B: Daily fee aggregation  
- **Purpose**: Aggregates all fee payments on a daily basis
- **Logic**: Groups fee events by day using timestamp truncation to daily boundaries. Sums both the base fee amounts and tip amounts for each day, treating null values as zero. Includes token symbol ('KSM') and CoinGecko identifier ('kusama') for price conversion. Results in daily totals of all fees paid on the Kusama network.
- **Key fields**: `timestamp` (daily), `fees` (total daily fee amount), `token_symbol`, `coingecko_id`

### Component C: USD conversion
- **Purpose**: Converts KSM fee amounts to USD values
- **Logic**: Looks up end-of-day KSM prices from CoinGecko using the 'kusama' identifier. Multiplies daily KSM fee totals by the corresponding USD price for each day. Adds business metadata including market sector classification ('blockchains_l1') and business segment ('blockchain').
- **Key fields**: `fees` (now in USD), `market_sector_id`, `business_segment_id`

### Final aggregation
- **Combining components**: Takes the USD-converted daily fee totals as the base input
- **Supply-side allocation**: Multiplies total fees by 20% (0.2) to calculate the portion allocated to supply-side participants (validators and infrastructure providers)
- **Currency conversion**: Fees are already converted to USD in the previous step using end-of-day CoinGecko prices
- **Time aggregation**: Data is aggregated to daily boundaries with timestamp grain set to 'day'
- **Final calculation**: Supply-side fees = Total daily fees × 0.2, representing the 20% portion of transaction fees that flows to network validators and infrastructure providers as revenue for securing and maintaining the Kusama blockchain

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

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

KusamaKSM

Supply-side fees

Supply-side fees

Competitive landscape