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Blockchains (L1)

XDC Network

# XDC Network Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of transaction fees that accrue to application developers, liquidity providers, or other supply-side participants in a blockchain ecosystem. For XDC Network, the supply-side fees metric is calculated as zero because XDC's fee structure directs all transaction fees to network validators and stakers rather than sharing them with application developers or protocol participants. This metric answers the business question: "How much revenue do supply-side participants earn from fees on the XDC Network?" The answer is consistently zero due to XDC's centralized fee distribution model.

## 2. Data sources

The calculation relies on several key data sources:
- **XDC transaction records**: Raw blockchain transaction data containing gas usage, gas prices, transaction hashes, addresses, and timestamps
- **End-of-day token price feeds**: USD pricing data for XDC tokens to enable currency conversion
- **Token metadata**: XDC native token information including contract address and symbol for proper identification

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize XDC transaction data for fee calculations
- **Logic**: Raw XDC transaction records are processed to extract key fields including `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, `gas_used`, and `gas_price`. The XDC native token address is hardcoded as `0x951857744785e80e2de051c32ee7b25f9c458c42` and symbol as 'XDC'. All numeric fields are safely cast to appropriate data types to handle potential data quality issues.
- **Key fields**: `gas_used` (gas consumed by transaction), `gas_price` (price per unit of gas), `token_address` (XDC native token identifier)

### Component B: Daily gas fee calculation  
- **Purpose**: Calculate total daily gas fees paid on XDC Network
- **Logic**: For each transaction, gas fees are calculated by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei to XDC token units. These individual transaction fees are then aggregated by day using timestamp truncation to daily boundaries. The aggregation sums all gas fees for each day to produce daily totals.
- **Key fields**: `l1_gas_fee` (daily sum of gas fees in XDC), `timestamp` (day-level aggregation boundary)

### Component C: USD conversion and metadata structuring
- **Purpose**: Convert XDC-denominated fees to USD and add business classification metadata
- **Logic**: Daily gas fees in XDC are converted to USD using end-of-day price feeds through the convert_to_usd_and_correct_decimals macro. Business metadata is added including `business_line` set to 'blockchain', `market_sector_id` set to 'blockchains_l1', and `business_segment_id` set to 'blockchain'. The chain identifier is standardized to 'xdc' for consistency.
- **Key fields**: `fees` (USD-denominated daily gas fees), business classification fields for categorization

### Component D: Total fees aggregation
- **Purpose**: Structure total fees data with proper schema and gap-filling
- **Logic**: The USD-converted fees are structured with complete metadata including `product_id` set to 'xdc', `market_sector_id` set to 'blockchains_l1', and `business_segment_id` set to 'blockchain'. The finalize_metric_fees macro is applied to ensure schema compliance, validate identifiers, and fill any gaps in the time series using a 'fill_zeros' strategy. Chain availability filters are applied to ensure data completeness.
- **Key fields**: Fully structured fees data with all required metadata and gap-filling applied

### Final aggregation
- **Combining components**: The supply-side fees calculation takes the structured total fees data and explicitly sets all fee values to zero
- **Currency conversion**: Currency conversion occurs earlier in the pipeline when total fees are calculated, but since supply-side fees are zero, no actual currency amounts are involved
- **Time aggregation**: Daily time boundaries are maintained from the underlying total fees calculation
- **Final calculation**: Supply-side fees are calculated as zero for all time periods because XDC's fee model directs all transaction fees to network validators rather than sharing them with application developers or protocol participants. This is implemented by setting `fees_supply_side` to 0 for all records from the underlying fees data.

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

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

XDC NetworkXDC

Supply-side fees

Supply-side fees

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