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

Solana is a smart contract platform for decentralized applications (a blockchain). Solana was founded by Anatoly Yakovenko, Greg Fitzgerald, Raj Gokal, etc. and launched in 2020.

SOL holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Solana’s investors include Polychain Capital, ParaFi capital, Passport capital, etc.

governance

github

twitter

discord

etherscan

website

Blockchains (L1)

Solana

# Solana Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction fees distributed to validators for processing instructions and maintaining network security. On Solana, validators receive a share of the fees paid by users, while the remaining portion is burned by the protocol. This metric captures the total economic value flowing to these service providers, including both a portion of the base fees and the entirety of priority fees.

## 2. Data sources

- **Blockchain events**: Block-level fee data and transaction-level resource configuration metadata, covering Solana
- **External data**: End-of-day price feeds for native assets

## 3. Step-by-step calculation

### Component A: Total fee aggregation

- **Purpose**: Capture the gross fees paid by users for instruction processing and network priority
- **Logic**: Total fees are aggregated from block-level data by summing the fees paid for both vote and non-vote transactions. This includes successful and failed transaction fees. Native amounts are normalized by decimal precision.
- **Key fields**: `total_fee`

### Component B: Protocol revenue and burn calculation

- **Purpose**: Identify the portion of fees removed from circulation (burned) to determine the protocol's take
- **Logic**: For data preceding the implementation of SIMD-0096, 50% of all transaction fees are designated as protocol revenue. Following the implementation of SIMD-0096, the base fee is isolated by subtracting non-vote priority fees from the total fee sum. For V1 transactions starting September 15, 2026, an adjustment is applied to replace inferred priority fees (calculated as fees minus 5,000 lamports per signature) with actual configured priority fees. Protocol revenue is then calculated as exactly 50% of these adjusted base fees.
- **Key fields**: `successful_non_vote_transactions_priority_fee`, `failed_non_vote_transactions_priority_fee`, `priority_fee_adjustment`

### Component C: Supply-side fee derivation and USD conversion

- **Purpose**: Calculate the final validator compensation and convert the value to USD
- **Logic**: Supply-side fees are derived by subtracting the calculated protocol revenue from the total aggregated fees. This results in an allocation where validators receive the remaining 50% of base fees and 100% of priority fees. The resulting daily native values are multiplied by end-of-day price feeds to normalize the metric to USD.
- **Key fields**: `fees`, `revenue`

_This methodology was automatically generated by Token Terminal's methodology analyzer._

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

SolanaSOL

Supply-side fees

Supply-side fees

Competitive landscape