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

Tezos is a smart contract platform for decentralized applications (a blockchain). Tezos was founded by Arthur Breitman & Kathleen Breitman etc. and launched in 2018.

XTZ holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

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Tezos

# Tezos Supply-side fees Methodology

## 1. Overview

The Tezos fees supply-side metric measures the total daily fees paid by users to the Tezos network for transaction processing and smart contract execution. This represents revenue earned by validators (bakers) and is equivalent to the standard fees metric for Tezos, as all network fees go to supply-side participants. The metric aggregates block-level fee data into daily USD totals.

## 2. Data sources

- **Tezos blockchain data**: Block-level fees data scraped directly from the Tezos blockchain, including block timestamps, block numbers (levels), and fee amounts paid in XTZ
- **External price data**: End-of-day XTZ price feeds from CoinGecko for USD conversion
- **Chain availability configuration**: Token Terminal's internal configuration defining supported time periods for Tezos data

## 3. Step-by-step calculation

### Component A: Raw fees extraction and normalization
- **Purpose**: Extract and normalize block-level fees from Tezos blockchain data
- **Logic**: Raw fees data is pulled from the Tezos scraper, which captures fees paid in each block. Fee amounts are stored in the smallest XTZ unit (mutez) and must be converted to whole XTZ tokens by dividing by 10^6 (since XTZ has 6 decimal places). Each record includes the block timestamp, block level (number), and the normalized fee amount.
- **Key fields**: `block_timestamp` for timing, `level` for block identification, and `amount` for the fee value in XTZ

### Component B: Daily aggregation
- **Purpose**: Aggregate block-level fees into daily totals
- **Logic**: Fees are grouped by day using timestamp truncation to daily boundaries. All fees occurring within the same day are summed together to create a single daily total. Additional metadata is added including chain identifier, market sector classification, and business segment categorization.
- **Key fields**: `daily_timestamp` for the aggregation period, `chain_id` set to 'tezos', `fees` containing the daily sum of all block fees

### Component C: USD conversion
- **Purpose**: Convert daily XTZ fee totals to USD values
- **Logic**: The daily XTZ amounts are converted to USD using end-of-day price feeds from CoinGecko. The conversion uses the 'tezos' CoinGecko identifier to match XTZ prices with the fee amounts for each day.
- **Key fields**: `fees` converted from XTZ amounts to USD values using corresponding daily exchange rates

### Component D: Metric finalization and standardization
- **Purpose**: Apply standard metric schema and handle missing data
- **Logic**: The data undergoes standardization through Token Terminal's metric finalization process, which validates chain IDs and product IDs, ensures proper schema compliance, and fills any missing days with zero values to maintain continuous time series data. The timestamp grain is set to 'day' to indicate daily aggregation.
- **Key fields**: `timestamp` and `timestamp_grain` for time dimensions, `fees` as the finalized daily totals

### Final aggregation: Supply-side metric creation
- **Combining components**: The finalized fees data is used directly as the supply-side metric, since all Tezos network fees represent revenue to supply-side participants (bakers/validators)
- **Currency conversion**: All amounts are in USD based on end-of-day XTZ prices from CoinGecko
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: The `fees` field is renamed to `fees_supply_side` to create the supply-side specific metric. A chain availability filter is applied to ensure only data from supported time periods is included in the final output.

*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

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