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

Litecoin is a distributed ledger for transfer and store of value (a blockchain). Litecoin was founded by Charlie Lee and launched in 2010.

LTC holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Litecoin’s investors include Block Ventures, etc.

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Blockchains (L1)

Litecoin

# Litecoin Supply-side fees Methodology

## 1. Overview

Litecoin fees supply side measures the total daily fees earned by Litecoin miners for processing transactions on the network. This metric represents the supply-side revenue in the Litecoin ecosystem, as all network fees are distributed to miners who provide the computational resources to secure and operate the network. The calculation aggregates transaction fees from all blocks produced each day and converts them to USD for standardized reporting.

## 2. Data sources

The calculation relies on these underlying data sources:
- **Litecoin blockchain blocks data**: Contains block-level information including the `total_fee` field that represents the sum of all transaction fees in each block
- **End-of-day price feeds**: LTC/USD price data used for currency conversion to standardize the metric in USD terms

## 3. Step-by-step calculation

### Component A: Daily fee extraction
- **Purpose**: Aggregates all transaction fees paid on the Litecoin network each day
- **Logic**: Extracts fee data from Litecoin blockchain blocks, truncates timestamps to daily boundaries, and sums the `total_fee` field across all blocks produced within each day. The data includes chain identifier set to 'litecoin', token symbol as 'LTC', and token address as 'native' to indicate the native Litecoin token
- **Key fields**: `timestamp` (truncated to day), `total_fee` (sum of fees from all blocks), `chain`, `token_symbol`, `token_address`

### Component B: Unit and currency conversion
- **Purpose**: Converts raw fee amounts from litoshis to LTC and then to USD
- **Logic**: Takes the daily aggregated fees and first converts from litoshis (the smallest unit of Litecoin) to LTC by dividing by 1e8, since 1 LTC equals 100 million litoshis. Then applies the currency conversion macro to convert LTC amounts to USD using end-of-day price feeds. Sets market sector as 'blockchains_l1' and business segment as 'blockchain' to properly categorize the metric
- **Key fields**: `fees` (converted to LTC then USD), `market_sector_id`, `business_segment_id`, `product_id` (set to null for Litecoin)

### Component C: Supply-side classification
- **Purpose**: Identifies all fees as supply-side revenue since Litecoin has no protocol fees
- **Logic**: Directly maps the total fees to `fees_supply_side` because in Litecoin's architecture, all transaction fees are distributed to miners who provide the computational resources (supply side). There are no protocol fees or other fee distributions, making this a straightforward one-to-one mapping
- **Key fields**: `fees_supply_side` (identical to total fees), `timestamp`, `timestamp_grain`, `product_id`, `chain_id`

### Final aggregation
- **Combining components**: The final metric directly uses the converted USD fee amounts as supply-side fees, with no additional aggregation needed since all Litecoin fees go to miners
- **Currency conversion**: USD conversion occurs in component B using end-of-day LTC/USD price feeds applied to the LTC-denominated fee amounts
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to the day level, ensuring all fees from blocks produced within a calendar day are grouped together
- **Final calculation**: The final `fees_supply_side` value equals the sum of all transaction fees from Litecoin blocks produced each day, converted from litoshis to LTC (divided by 1e8) and then to USD using end-of-day price feeds

*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

Competitive landscape