# Near Protocol Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of total fees generated by Near Protocol and Near Intents that is distributed to service providers rather than retained or burnt by the protocol. For Near Protocol, this metric represents the portion of transaction gas fees paid to validators for securing the network and processing transactions. For Near Intents, the metric captures the total fees paid by users to frontends and solvers for the execution of cross-chain intents. These payments compensate infrastructure participants for providing liquidity, computing resources, and transaction relay services.

## 2. Data sources

- **Blockchain events**: Gas usage data from `block_chunks`, burnt token data from `transactions` and `receipts`, and `token_diff` events from `intents.near` contracts, covering the Near Protocol chain
- **External data**: End-of-day price feeds for NEAR and other assets involved in intent-based swaps

## 3. Step-by-step calculation

### Component A: Gas fee tracking for Near Protocol

- **Purpose**: Captures the total gas fees generated by transaction activity on the Near Protocol base network
- **Logic**: Total gas fees are calculated by multiplying the gas used in block chunks by the prevailing gas price. These values are extracted from the block metadata and represent the gross fees paid by users for network execution. Amounts are normalized by decimal precision and aggregated to a daily granularity.
- **Key fields**: `chunk_gas_used` (quantity of gas), `gas_price` (price per unit of gas)

### Component B: Near Intents fee extraction

- **Purpose**: Captures service fees paid to frontends and solvers within the Near Intents ecosystem
- **Logic**: `token_diff` events from the `intents.near` contract are parsed to identify intent-based swaps. The `fees_collected` array within the event data is unnested to extract the specific fee asset and the fee amount. Only successful execution outcomes are included. Fee amounts are normalized by the decimal precision of the respective asset and multiplied by 1000 to reflect the specific fee structure of the intents program.
- **Key fields**: `fees_collected` array (fee details), `execution_status` (filter for success), `token_address` (asset identification)

### Component C: Protocol revenue tracking for Near Protocol

- **Purpose**: Determines the portion of gas fees that is burnt and therefore excluded from supply-side participant compensation
- **Logic**: Burnt token amounts are extracted from both transaction and receipt execution data. These amounts represent the protocol revenue that is permanently removed from circulation. The total burnt amount is calculated daily to be subtracted from the gross gas fees.
- **Key fields**: `tokens_burnt` (burnt asset quantity)

### Component D: Supply-side allocation and USD conversion

- **Purpose**: Calculate the final value distributed to service providers and normalize to USD
- **Logic**: For the Near Protocol base network, supply-side fees are calculated as the difference between total gas fees and protocol revenue (burnt tokens), representing the portion of gas fees distributed to validators. For Near Intents, the protocol revenue is treated as zero, meaning 100% of the extracted fees are allocated to the supply side. All values are converted to USD using end-of-day price feeds. The components are summed to provide a total supply-side fee metric for the ecosystem, with a filter applied to ensure only positive values are reported.
- **Key fields**: `fees` (total fees), `revenue` (burnt tokens), `price_usd` (valuation)

*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 validator rewards (supply-side fees).

NEAR Protocol is a smart contract platform for decentralized applications (a blockchain). NEAR Protocol was founded by Alexander Skidanov & Ilya Polosukhin and launched in 2017.

NEAR holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). NEAR Protocol's investors include a16z, Pantera Capital, Libertus, etc.