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Photon

# Photon Supply-side fees Methodology

## 1. Overview

The Photon supply-side fees metric measures the portion of total fees distributed to liquidity providers, validators, or other supply-side participants in the Photon protocol ecosystem. This metric is calculated by extracting total protocol fees from Solana native transfers and then setting the supply-side portion to zero, reflecting that Photon does not currently share revenue with supply-side participants.

## 2. Data sources

- **Solana native transfers**: SOL transfer events on the Solana blockchain, specifically transfers directed to Photon fee collection accounts
- **End-of-day price feeds**: SOL token price data used for USD conversion of fee amounts  
- **Token metadata**: SOL token information including decimal precision and contract details

## 3. Step-by-step calculation

### Component A: Fee collection extraction
- **Purpose**: Identifies and extracts all fees paid to the Photon protocol
- **Logic**: Filters Solana native transfer events to capture SOL transfers sent to the specific Photon fee account `AVUCZyuT35YSuj4RH7fwiyPu82Djn2Hfg7y2ND2XcnZH`. Each transfer represents a fee payment made by users interacting with the Photon protocol. The system captures the transfer amount, transaction details, and timestamp for each fee payment.
- **Key fields**: `block_timestamp` for timing, `transaction_id` for unique identification, `transaction_signer` for the fee payer, `amount` for the fee amount in lamports, and `to_address` for the fee recipient account

### Component B: Daily fee aggregation  
- **Purpose**: Aggregates individual fee payments into daily totals and converts to standard units
- **Logic**: Groups fee transfer events by day using timestamp truncation to daily boundaries. Sums all transfer amounts within each day and converts from Solana's native lamports denomination to SOL by dividing by 1e9. This produces daily total fees collected by the Photon protocol in SOL units.
- **Key fields**: `timestamp` truncated to day boundaries, `fees` representing the daily sum of SOL transferred to fee accounts

### Component C: USD conversion
- **Purpose**: Converts SOL-denominated fees to USD values for standardized reporting
- **Logic**: Applies end-of-day SOL price feeds to convert the daily fee totals from SOL to USD. Uses the closing price for each day to ensure consistent valuation methodology across all metrics. The conversion preserves the original SOL decimal precision without additional decimal adjustments.
- **Key fields**: `fees` converted from SOL amounts to USD equivalents using daily closing prices

### Component D: Supply-side allocation
- **Purpose**: Determines the portion of total fees allocated to supply-side participants
- **Logic**: Sets the `fees_supply_side` field to zero for all time periods, indicating that Photon does not currently distribute any portion of collected fees to liquidity providers, validators, or other supply-side participants. This reflects the protocol's current fee structure where all collected fees are retained by the protocol rather than shared with ecosystem participants.
- **Key fields**: `fees_supply_side` hardcoded to 0 across all time periods

### Final aggregation
- **Combining components**: The final metric inherits the daily timestamp structure from the fee aggregation component but replaces the total fee amount with the zero supply-side allocation
- **Currency conversion**: All amounts are expressed in USD using end-of-day SOL pricing for consistency with other Token Terminal metrics
- **Time aggregation**: Data is aggregated at daily intervals with timestamps truncated to day boundaries in UTC
- **Final calculation**: Supply-side fees equals zero for all time periods, regardless of total protocol fee volume, reflecting Photon's current business model of retaining all fee revenue

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

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

Photon

Supply-side fees

Supply-side fees

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