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Unichain

# Unichain Supply-side fees Methodology

## 1. Overview

Supply-side fees for Unichain represent the portion of transaction fees that goes to supply-side participants (typically validators, sequencers, or liquidity providers). However, Unichain implements a unique fee model where supply-side fees are explicitly set to zero, meaning all collected fees go to the protocol rather than being shared with supply-side participants. This metric tracks this zero-fee policy while maintaining the underlying infrastructure to calculate L1 settlement costs for reference.

## 2. Data sources

The calculation uses the following raw data sources:
- **Ethereum transaction records**: All transactions on Ethereum mainnet, specifically those sent to Unichain's sequencer address
- **Gas usage data**: Regular gas consumption and blob gas usage from Ethereum transaction receipts
- **Gas pricing data**: Effective gas prices and blob gas prices from Ethereum transaction receipts
- **End-of-day token price feeds**: USD conversion rates for ETH and other tokens
- **Token metadata**: Information about wrapped ETH token contracts and symbols

## 3. Step-by-step calculation

### Component A: L1 settlement fee extraction
- **Purpose**: Identifies and calculates the cost of settling Unichain transactions on Ethereum L1
- **Logic**: Filters Ethereum transactions to find those sent to Unichain's sequencer address (`0xff00000000000000000000000000000000000130`). For each qualifying transaction, extracts gas usage metrics including regular gas used and blob gas used amounts, along with corresponding gas prices. Calculates total settlement cost by multiplying gas amounts by prices and adding regular gas fees to blob gas fees. Converts final amounts from wei to ETH by dividing by 10^18.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for identification, `gas_used_amount` and `gas_price` for regular gas calculations, `blob_gas_used_amount` and `blob_gas_price` for blob gas calculations, `l1_settlement_amount` as the final ETH-denominated settlement cost

### Component B: Daily aggregation of settlement costs
- **Purpose**: Aggregates L1 settlement costs by day to create daily cost metrics
- **Logic**: Groups L1 settlement transactions by day using timestamp truncation. Sums all `l1_settlement_amount` values for each day to get total daily settlement costs. Classifies Unichain as an L2 blockchain in the blockchains market sector with blockchain business segment. Uses incremental processing with day-level partitioning and applies lookback periods for data consistency.
- **Key fields**: `timestamp` truncated to day level, `cost_of_revenue` as summed daily settlement costs, `chain_id` set to ethereum, `market_sector_id` as blockchains_l2

### Final aggregation
- **Combining components**: Takes the daily aggregated settlement cost data but explicitly overrides the `fees_supply_side` field to zero
- **Currency conversion**: USD conversion is handled by the finalization macro using end-of-day price feeds, though the core metric remains zero
- **Time aggregation**: Daily boundaries are maintained using timestamp truncation to day level
- **Final calculation**: Regardless of underlying settlement costs, supply-side fees are set to zero, reflecting Unichain's fee model where all fees go to the protocol rather than being shared with supply-side participants. The finalization process applies zero-fill strategy for missing data and includes chain availability filtering.

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

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

UnichainUNI

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown