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Infrastructure

Virtuals Protocol

# Virtuals Protocol Supply-side fees Methodology

## 1. Overview

The share of fees distributed to service providers and ecosystem participants, such as AI agent treasuries and liquidity providers, is measured by supply-side fees. The portion of fees retained by the protocol treasury as revenue is excluded from this metric. Economic incentives allocated to support and maintain AI agents on Virtuals Protocol are represented by these fees.

## 2. Data sources

- **Blockchain events**: `NewPersona` events from `AgentFactory` contracts, and ERC-20 `Transfer` events, covering Ethereum, Base, and Robinhood Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Agent treasury identification

- **Purpose**: The treasury addresses associated with AI agents are identified.
- **Logic**: `NewPersona` events from `AgentFactory` contracts are parsed on Base. The agent asset address and its corresponding treasury address are extracted to map agent treasuries.
- **Key fields**: `token_address` and `treasury_address`

### Component B: Direct fee flow tracking

- **Purpose**: Direct fee transfers of protocol and agent assets are captured.
- **Logic**: ERC-20 `Transfer` events of the Virtuals Protocol asset and cbBTC are tracked. Transfers to designated fee receivers, the protocol treasury, and identified agent treasuries are captured. Specific exclusions are applied to prevent double-counting, such as filtering out transfers from fee splitters and certain tax manager transfers.
- **Key fields**: `block_timestamp`, `transaction_hash`, `token_address`, `to_address`, and `amount`

### Component C: Fee payout tracking

- **Purpose**: Trading-tax and locked-liquidity fees distributed via payouts are captured.
- **Logic**: ERC-20 `Transfer` events initiated by tax managers and fee splitters are tracked. Payouts of specific assets (such as USDG) are captured.
- **Key fields**: `block_timestamp`, `transaction_hash`, `token_address`, `to_address`, and `amount`

### Component D: Fee classification and supply-side filtering

- **Purpose**: Supply-side fees are distinguished from protocol revenue.
- **Logic**: Captured fee flows and payouts are classified. Payouts to the protocol treasury are classified as revenue, while all other payouts are classified as supply-side fees. For direct fee flows, transfers of the Virtuals Protocol asset to the legacy fee receiver during specific historical periods (November and December 2024) using designated transaction methods are classified as revenue, while all other flows are classified as supply-side fees. On Ethereum, all captured fee flows are classified as supply-side fees.
- **Key fields**: `to_address`, `token_address`, and `transaction_hash`

### Component E: USD normalization and aggregation

- **Purpose**: Supply-side fees are converted to USD and aggregated daily.
- **Logic**: All supply-side fee amounts are normalized by decimal precision using asset metadata. Normalized amounts are multiplied by end-of-day asset prices to convert the values to USD. The USD values are aggregated daily using UTC day boundaries.
- **Key fields**: `timestamp`, `fees_supply_side`, and `price_usd`

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

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

Virtuals ProtocolVIRTUAL

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown