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Blockchains (L1)

Sonic

# Sonic Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that goes to network validators and stakers rather than the protocol itself. For Sonic, this metric calculates the 10% of total gas fees that goes to supply-side participants, with the remaining 90% going to the protocol as revenue. This metric answers the question: "How much are supply-side participants (validators/stakers) earning from network fees?"

## 2. Data sources

- **Blockchain transaction data**: Sonic blockchain transaction records containing gas usage and gas price information for each transaction
- **End-of-day price feeds**: Token price data for USD conversion of the Sonic native token (S)
- **Token metadata**: Information about the Sonic native token including its contract address and symbol

## 3. Step-by-step calculation

### Component A: Daily gas fees calculation
- **Purpose**: Aggregate total daily gas fees paid by users on the Sonic network
- **Logic**: For each transaction, multiply `gas_used` by `effective_gas_price` to get the total fee paid. The `effective_gas_price` is converted from wei to token units by dividing by 10^18. Sum all transaction fees by day using daily timestamp truncation.
- **Key fields**: `gas_used` (gas units consumed), `effective_gas_price` (price per gas unit in wei), `block_timestamp` (transaction timestamp)

### Component B: Total fees metric
- **Purpose**: Convert daily gas fees to USD and format as a standardized metric
- **Logic**: Take the daily fee amounts from Component A, convert to USD using end-of-day price feeds for the Sonic native token, and apply the finalization macro to ensure proper schema and data quality
- **Key fields**: `fee_amount` (daily total fees), `token_address` (Sonic native token address), USD conversion rate

### Component C: Protocol revenue calculation  
- **Purpose**: Calculate the portion of fees that goes to the protocol (90%)
- **Logic**: Take 90% of the total daily fees by multiplying `fee_amount` by 0.9, convert to USD using end-of-day price feeds, and format as a revenue metric
- **Key fields**: `revenue` (90% of total fees), same token and USD conversion as Component B

### Final aggregation
- **Combining components**: Union the negated protocol revenue (-revenue) with the total fees, then sum them together. This mathematical operation yields: -0.9 × total_fees + total_fees = 0.1 × total_fees
- **Currency conversion**: USD conversion happens at the component level using end-of-day price feeds for the Sonic native token
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day granularity
- **Final calculation**: Supply-side fees = Total fees - Protocol revenue = 10% of total daily gas fees paid on Sonic

*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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Supply-side fees

Supply-side fees

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