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Phantom

# Phantom Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total fees that are distributed to liquidity providers, validators, or other supply-side participants in a protocol. For Phantom, this metric is consistently zero, indicating that Phantom operates a business model where all collected fees are retained by the protocol rather than shared with users or external participants.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Solana native transfer events**: Records of SOL transfers between addresses on the Solana blockchain
- **Solana SPL token transfer events**: Records of SPL (Solana Program Library) token transfers, capturing movements of various tokens within the Solana ecosystem  
- **End-of-day token price feeds**: Historical price data for tokens to enable USD conversion
- **Token metadata**: Information about token decimal places and other properties needed for accurate amount calculations

## 3. Step-by-step calculation

### Component A: SOL fee collection tracking
- **Purpose**: Identifies native SOL transfers that represent fees paid to Phantom
- **Logic**: Extracts native SOL transfer events from Solana blockchain data where the recipient address matches one of Phantom's eight designated fee collection accounts. The system filters out transfers where the sender is also a fee collection account to avoid counting internal movements between Phantom's own accounts. Each transfer record includes the timestamp, transaction details, sender address, and transfer amount.
- **Key fields**: `block_timestamp` for timing, `transaction_signer` for the fee payer, `amount` for the SOL quantity, and hardcoded `token_address` as the SOL token identifier

### Component B: SPL token fee collection tracking  
- **Purpose**: Identifies SPL token transfers that represent fees paid to Phantom in various tokens
- **Logic**: Extracts SPL token transfer events from Solana blockchain data where the recipient owner address matches one of Phantom's eight fee collection accounts. Similar to SOL tracking, it excludes transfers from fee collection accounts to prevent double-counting internal transfers. This captures fees paid in various SPL tokens beyond just native SOL.
- **Key fields**: `block_timestamp` for timing, `transaction_signer` for the fee payer, `token_address` for the specific SPL token, and `amount` for the token quantity transferred

### Component C: Fee aggregation and USD conversion
- **Purpose**: Combines SOL and SPL token fee data into daily USD-denominated totals
- **Logic**: Unions the SOL and SPL token transfer data, then groups by day, chain, product identifier, and token address. For each group, the system sums the total amount of fees collected. The aggregated amounts are then processed through decimal correction (adjusting for each token's decimal places) and converted to USD values using end-of-day price feeds.
- **Key fields**: `timestamp` truncated to daily boundaries, `chain_id` for Solana, `token_address` for each token type, and `fees` representing the USD-converted daily total

### Final aggregation
- **Combining components**: The SOL and SPL token fee data are unioned together and aggregated by day to create comprehensive daily fee totals across all tokens
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal adjustment based on each token's metadata  
- **Time aggregation**: All fees are aggregated to daily boundaries using timestamp truncation to the day level
- **Final calculation**: Supply-side fees are calculated by taking the total daily fees and setting the value to zero for all records. This reflects Phantom's business model where no fees are distributed to supply-side participants - all collected fees are retained by the protocol as demand-side revenue.

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

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

Phantom

Supply-side fees

Supply-side fees

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