Native token swaps involved swapping tokens between native tokens including LUNA and a number of stablecoins like UST, KRT and MNT. These swaps occur on the native protocol rather than on a DEX.

The graph below shows the daily fees, and the cumulative fees in USD generated by swaps over the last year.

Observation

• Over $1.6B in swap fees is generated over the past year.

• Between 10th - 20th Nov'21, huge amount of swap fees (over $100M daily) is generated. This is in line with Prop 44 to burn the 88M LUNA from the Community Pool to mint 3B - 4B UST.

Looking closer at the swap fees using a log scale.

Observation

• Overall swap fees generated is trending up for the past year.

Validators are paid in fees generated for validating transactions. These fees are then paid to stakers in proportion the their stake in the validator. Fees on the other hand are generated when a transactions is made. These transactions can be derived from a normal transaction or through native swap. In this article, we will take a look at both.