Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Pendulum is a decentralized blockchain for cross-border payments and traditional finance infrastructure powered by Polkadot Relay chain.

PEN holders own and govern the protocol. Pendulum is a subsidiary of SatoshiPay. SatoshiPay's investors include Blue Star Capital, KR1 plc, Stellar Development Foundation, etc.

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Blockchains (L2)

Pendulum

# Pendulum Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that are distributed to supply-side participants (validators, liquidity providers, or other network contributors) rather than retained by the protocol. For Pendulum, this metric consistently returns zero, reflecting that Pendulum operates a fee model where all transaction fees are retained by the protocol rather than being shared with supply-side participants.

## 2. Data sources

- **Blockchain events**: Pendulum blockchain `TransactionFeePaid` events containing transaction fee amounts and tip data
- **External data**: End-of-day price feeds from CoinGecko for Pendulum Chain token (PEN) conversion to USD
- **Configuration data**: Chain availability settings to ensure data is only included for supported chains

## 3. Step-by-step calculation

### Component A: Raw fee extraction
- **Purpose**: Extract and process all transaction fees paid on the Pendulum blockchain
- **Logic**: Query Pendulum blockchain events for `TransactionFeePaid` events, which contain fee information in JSON format. Parse the `event_data` arrays to extract the base transaction fee amount (position 1) and tip amount (position 2). Convert both amounts from native Pendulum decimals (1e12) to human-readable token amounts. Include additional transaction metadata like block timestamp, block number, and transaction hash for traceability.
- **Key fields**: `amount` (base transaction fee), `tip` (additional tip paid), `block_timestamp` (transaction timing), `extrinsic_hash` (transaction identifier)

### Component B: Daily aggregation and USD conversion
- **Purpose**: Aggregate all fees to daily totals and convert to USD values
- **Logic**: Group all transaction fee records by day using timestamp truncation to daily boundaries. For each day, sum the total fees by adding `amount` and `tip` for all transactions. Apply standard dimensions including timestamp grain (day), chain identifier (pendulum), and product identifier (Pendulum Substrate). Convert the daily native token totals to USD using end-of-day price feeds from CoinGecko for the 'pendulum-chain' token.
- **Key fields**: `timestamp` (daily boundary), `fees` (total daily fees in native tokens), `fees_usd` (USD-converted fee totals)

### Component C: Supply-side fee allocation
- **Purpose**: Determine what portion of fees goes to supply-side participants
- **Logic**: Apply Pendulum's specific business logic for fee distribution. Set `fees_supply_side` to zero for all records, indicating that Pendulum does not distribute any portion of transaction fees to supply-side participants such as validators or liquidity providers. All fees are retained by the protocol itself.
- **Key fields**: `fees_supply_side` (always zero for Pendulum)

### Final aggregation
- **Combining components**: No additional aggregation is needed as the supply-side fees are uniformly zero across all time periods and dimensions
- **Currency conversion**: USD conversion is inherited from the daily fee totals, though the final supply-side amount remains zero
- **Time aggregation**: Daily boundaries are maintained with a fill-zeros strategy to ensure continuous time series data even for periods with no fees
- **Final calculation**: The metric value is consistently zero USD for all time periods, reflecting Pendulum's fee model where no fees are distributed to supply-side participants

*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

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