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

The Open Network (TON) is a smart contract platform for decentralized applications (a blockchain). The Open Network was founded by Telegram and launched in 2019.

GRAM holders own and govern the protocol. They currently take (burn) a cut of the total transaction fees paid by users (revenue). The Open Network's investors include KuCoin Ventures, MEXC Ventures, DWF Labs, etc.

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Blockchains (L1)

# TON Supply-side fees Methodology

## 1. Overview

Supply-side fees are defined as the portion of transaction fees paid to TON validators and other network operators who provide infrastructure services. Revenue flowing to the supply-side participants in the TON ecosystem is tracked by this metric. TON's fee burn mechanism, implemented on June 17, 2023, is accounted for in the calculation, where 50% of fees are burned (removed from circulation) and 50% are distributed to validators. Prior to this date, 100% of fees were distributed to validators.

## 2. Data sources

- **Blockchain events**: Transaction fees and message forward fees from transactions and messages, covering TON
- **External data**: End-of-day price feeds for the native TON asset

## 3. Step-by-step calculation

### Component A: Raw fee extraction

- **Purpose**: Extraction of base fee components from TON blockchain transactions and messages
- **Logic**: Base fee components are retrieved from transaction fees and forward fees from outgoing messages. Messages are filtered to only include the outgoing direction to avoid double-counting fees. Transactions and messages are joined by transaction hash to link fee components to their originating transactions.
- **Key fields**: `transaction_hash`, `transaction_fees`, `forward_fee`, `direction`, `block_timestamp`, `workchain_id`

### Component B: Daily fee aggregation

- **Purpose**: Calculation of total fees per transaction and aggregation to daily totals
- **Logic**: For each transaction, the base transaction fees are summed with all associated outgoing forward fees to calculate total fees. Data is grouped by day using timestamp truncation to the day boundary. Cases where transactions have zero or null forward fees are handled by coalescing to zero.
- **Key fields**: `timestamp`, `fees`, `workchain_id`

### Component C: USD conversion

- **Purpose**: Conversion of TON native amounts to USD values
- **Logic**: Daily fee totals are normalized by the native decimal precision of the TON asset. Normalized fees are converted to USD using end-of-day price feeds for the native TON asset.
- **Key fields**: `timestamp`, `fees`, `chain_id`

### Component D: Supply-side allocation and finalization

- **Purpose**: Application of the fee burn mechanism and finalization of supply-side fees
- **Logic**: Time-based logic is applied based on the fee burn implementation on June 17, 2023. For transactions before this date, 100% of fees are allocated to validators. For transactions after this date, a 50% allocation is applied to account for the fee burn where half of the fees are burned and the remaining half are allocated to validators. Standard metric finalization is applied, including zero-filling for missing days to ensure continuous daily coverage.
- **Key fields**: `timestamp`, `fees_supply_side`

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

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

TONGRAM

Supply-side fees

Supply-side fees

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