Validators process transactions and receive fees from users (supply-side fees).

Ronin is a smart contract platform for decentralized applications (a blockchain). Ronin was founded by Sky Mavis and launched in 2021.

RON holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Sky Mavis' investors include a16z, Binance, Animoca Brands, etc.

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Ronin

# Ronin Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that are distributed to block validators and stakers, rather than being burned or removed from circulation. For Ronin, this metric is calculated as the difference between total gas fees collected from users and the base fees that are burned. This measures the actual revenue earned by network participants who validate transactions and secure the blockchain.

## 2. Data sources

The calculation relies on these core data sources:
- **Ronin transaction records**: Complete transaction data including gas usage, effective gas prices, block numbers, and timestamps
- **Ronin block data**: Block-level information containing base fee per gas values used for fee burning calculations  
- **End-of-day price feeds**: RON token prices from CoinGecko API for USD conversion
- **Token metadata**: RON token address (`0xe514d9deb7966c8be0ca922de8a064264ea6bcd4`) and decimal precision (18 decimals)

## 3. Step-by-step calculation

### Component A: Total gas fees calculation
- **Purpose**: Calculate the total fees paid by users for all transactions
- **Logic**: For each Ronin transaction, multiply the `gas_used` by the `effective_gas_price` to determine the total fee paid. The `effective_gas_price` represents the actual price per gas unit paid after considering network congestion and user bid prices. Gas amounts are normalized by dividing by 10^18 to handle RON token decimal precision. These individual transaction fees are then aggregated by day using timestamp truncation to daily boundaries.
- **Key fields**: `gas_used` (gas units consumed), `effective_gas_price` (actual price per gas unit), `block_timestamp` (transaction timing)

### Component B: Base fees calculation (burned fees)
- **Purpose**: Calculate the portion of fees that are burned and removed from circulation
- **Logic**: For each transaction, join transaction data with corresponding block data using the `block_number`. Multiply the transaction's `gas_used` by the block's `base_fee_per_gas` to determine how much was burned. The `base_fee_per_gas` is set algorithmically by the network based on block utilization. These base fee amounts are normalized by dividing by 10^18 for proper decimal handling, then aggregated daily by truncating timestamps to day boundaries.
- **Key fields**: `gas_used` (from transactions), `base_fee_per_gas` (from block data), `block_number` (for joining data)

### Final aggregation
- **Combining components**: The revenue component (burned base fees) is negated and unioned with the total fees component. This mathematical structure allows calculating supply-side fees as: Total Fees - Base Fees (Burned) = Supply-Side Fees
- **Currency conversion**: Both fee components are converted from RON to USD using end-of-day token prices from CoinGecko API. The conversion applies the daily closing price to the aggregated daily fee amounts
- **Time aggregation**: All calculations use daily time boundaries by truncating transaction timestamps to day granularity. This ensures consistent daily reporting periods
- **Final calculation**: The final supply-side fees value represents the sum of total fees minus burned fees, showing the actual fee revenue distributed to validators and network participants rather than being removed from circulation

*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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