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

Phala is a specialized privacy-preserving cloud computing blockchain powered by Polkadot Relay chain.

PHA holders own and govern the protocol. Phala’s investors include IOSG Ventures, Incuba Alpha, Candaq Fintech Group, and others.

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Phala

# Phala Supply-side fees Methodology

## 1. Overview

Supply-side fees for Phala represent the portion of transaction fees that goes to network participants who provide computational resources or validation services. Currently, Phala's fee structure directs all transaction fees to the protocol without a specific allocation to supply-side participants, so this metric consistently returns zero. However, the complete fee calculation infrastructure is maintained to support potential future changes to Phala's fee distribution model.

## 2. Data sources

- **Blockchain events**: Raw event logs from the Phala blockchain network, specifically transaction payment events
- **Transaction data**: Parsed `TransactionFeePaid` events from the `transactionPayment` pallet containing fee and tip amounts
- **External data**: End-of-day PHA token price feeds from CoinGecko API for USD conversion
- **Blockchain metadata**: Block timestamps, event indices, and transaction identifiers from Phala network

## 3. Step-by-step calculation

### Component A: Raw event extraction
- **Purpose**: Extract transaction payment events from Phala blockchain
- **Logic**: Process raw blockchain event logs from the Phala network, filtering specifically for events within the `transactionPayment` pallet that use the `TransactionFeePaid` method. Each event contains structured data arrays with fee and tip information, along with metadata like block timestamps, event indices, and transaction identifiers.
- **Key fields**: `block_timestamp` for timing, `event_data` arrays containing fee amounts, `event_method` for filtering, `event_pallet` for categorization, `extrinsic_id` for transaction identification

### Component B: Fee data processing  
- **Purpose**: Parse and normalize transaction fee amounts from event data
- **Logic**: Extract fee and tip amounts from the structured `event_data` JSON arrays, specifically accessing the second and third elements which contain `transaction_fee` and `transaction_tip` values. Combine these amounts to calculate total transaction cost, then normalize from Phala's native units by dividing by 10^12 to convert to standard decimal representation.
- **Key fields**: `transaction_fee` and `transaction_tip` from event data, `extrinsic_id` for transaction linking, converted `transaction_fee` as final amount

### Component C: USD conversion and aggregation
- **Purpose**: Convert PHA amounts to USD and structure for metric calculation
- **Logic**: Take the normalized transaction fee amounts and convert them to USD using end-of-day PHA token prices from CoinGecko API. Structure the data with daily timestamp boundaries, chain identifiers, and standard metric fields including market sector and business segment classifications.
- **Key fields**: `timestamp` truncated to daily boundaries, `chain_id` set to 'phala', `fees` in USD amounts, `coingecko_id` as 'pha'

### Final aggregation
- **Combining components**: Transaction fee data flows from raw events through parsing and normalization to USD conversion, maintaining transaction-level granularity before final aggregation
- **Currency conversion**: USD conversion uses end-of-day PHA token prices from CoinGecko, applied to normalized fee amounts
- **Time aggregation**: Daily timestamp boundaries are established by truncating block timestamps to day-level granularity
- **Final calculation**: Supply-side fees are explicitly set to zero for all records, as Phala's current fee model does not allocate transaction fees to supply-side participants. The complete fee infrastructure is maintained to support potential future changes to the protocol's fee distribution mechanism.

*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

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