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Blockchains (L2)

peaq

# peaq Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees on the Peaq network that is allocated to validators and delegators as rewards for securing the network. According to Peaq's tokenomics documentation, 40% of all transaction fees and newly minted tokens are distributed to validators and delegators. This metric calculates the daily USD value of this supply-side fee allocation.

## 2. Data sources

- **Peaq blockchain events**: Parsed `TransactionFeesDistributed` events from the `blockReward` pallet that record fee distribution amounts
- **Transaction metadata**: Block timestamps, block numbers, extrinsic hashes, and event indices from Peaq blockchain transactions
- **External price data**: End-of-day PEAQ token price feeds from CoinGecko
- **Tokenomics parameters**: Hardcoded allocation percentage (40%) based on Peaq's documented fee distribution model

## 3. Step-by-step calculation

### Component A: Raw fee extraction
- **Purpose**: Extract native PEAQ token fee amounts from blockchain events
- **Logic**: Filter Peaq blockchain events for `TransactionFeesDistributed` events within the `blockReward` pallet. Extract the base fee amount from the first element of the event data array. Convert amounts from wei-like units to standard token units by dividing by 1e18 (18 decimal places). Capture associated metadata including block timestamp, block number, extrinsic hash, and event index.
- **Key fields**: `amount` (converted fee amount), `block_timestamp`, `extrinsic_hash`, `event_index`

### Component B: Daily aggregation
- **Purpose**: Sum all transaction fees per day in native PEAQ tokens
- **Logic**: Group all fee events by day using timestamp truncation to day boundaries. Sum the `amount` field across all transactions within each day. Assign standard identifiers including product ID and chain ID as 'peaq' for consistent metric schema.
- **Key fields**: `timestamp` (daily), `amount` (daily sum), `product_id`, `chain_id`

### Component C: USD conversion
- **Purpose**: Convert daily native token amounts to USD values
- **Logic**: Join daily fee amounts with end-of-day PEAQ token prices from CoinGecko. Multiply the native token amount by the corresponding daily price to get USD equivalent. Use inner join to ensure price data is available for the conversion.
- **Key fields**: `fees` (USD amount), `timestamp`, `price`

### Final aggregation
- **Combining components**: The calculation flows sequentially from raw event extraction through daily aggregation to USD conversion
- **Currency conversion**: Native PEAQ token amounts are converted to USD using end-of-day CoinGecko prices matched by date
- **Time aggregation**: All fee events are aggregated to daily boundaries using timestamp truncation
- **Final calculation**: Apply a 40% allocation factor to the total daily fees in USD to represent the portion distributed to validators and delegators as supply-side rewards. The final metric value equals daily total fees multiplied by 0.4, representing the documented tokenomics allocation for network participants.

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

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

peaqPEAQ

Supply-side fees

Supply-side fees

Competitive landscape

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