website

twitter

Blockchains (L1)

Plasma

# Plasma Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that goes to external third-party participants who provide services to the protocol. For Plasma, this metric is currently set to zero because validators (who would typically receive priority fees) are operated internally by the Plasma team rather than external third parties. This aligns with Token Terminal's standard that supply-side fees must flow to external participants to qualify as true supply-side revenue.

## 2. Data sources

- **Plasma blockchain transaction records**: Individual transaction data including gas consumption, effective gas prices, sender/receiver addresses, and transaction hashes
- **Plasma blockchain block data**: Block-level information including base fee per gas required for EIP-1559 fee calculations
- **End-of-day token price feeds**: Token price data for USD conversion (applied through standard metric finalization)

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract raw transaction and gas fee data from Plasma blockchain
- **Logic**: Retrieves transaction records including gas consumption (`gas_used`), total gas price paid (`effective_gas_price`), and transaction metadata. Joins transaction data with corresponding block data to access the `base_fee_per_gas` required for EIP-1559 fee structure calculations. Each transaction is tagged with the native token address and symbol (`XPL`)
- **Key fields**: `gas_used`, `effective_gas_price`, `base_fee_per_gas`, `block_timestamp`, transaction addresses

### Component B: Daily fee aggregation
- **Purpose**: Calculate daily base fees and priority fees following EIP-1559 model
- **Logic**: Groups transactions by day and calculates two fee components. Base fees are computed as `gas_used` multiplied by `base_fee_per_gas` (these fees are burned). Priority fees are calculated as `gas_used` multiplied by the difference between `effective_gas_price` and `base_fee_per_gas` (these would go to validators). All calculations convert from wei to token units by dividing by 1e18
- **Key fields**: Daily aggregated `base_fee` and `priority_fee` amounts in token units

### Final aggregation
- **Combining components**: The model references the daily fee calculations but applies a business rule override
- **Business logic override**: Supply-side fees are explicitly set to 0.0 regardless of calculated priority fee amounts. This is because Plasma's current validators are operated by the internal Plasma team, not external third-party participants
- **Currency conversion**: Standard USD conversion applied through the finalize metric process using end-of-day price feeds
- **Time aggregation**: Daily granularity with timestamp truncation to day boundaries
- **Final calculation**: The final metric value is always 0 for supply-side fees until external validators are launched, at which point the methodology should be updated to include priority fees as supply-side revenue

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

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

PlasmaXPL

Supply-side fees

Supply-side fees

Competitive landscape