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

Algorand is a smart contract platform for decentralized applications (a blockchain). Algorand was founded by Silvio Micali and launched in 2018.

ALGO holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Algorand's investors include Union Square Ventures, Multicoin Capital, Pillar, etc.

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Algorand

# Algorand Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average value of transaction fees paid by a single unique user on the Algorand network over a 24-hour period. This metric is used to evaluate the daily cost of interaction for participants and the overall economic throughput of the network. It is calculated by dividing the total daily fees by the number of unique active users (daily). All values are normalized to USD to facilitate cross-chain comparison.

## 2. Data sources

- **Blockchain events**: Transaction data from the network, covering Algorand
- **External data**: End-of-day price feeds for the native ALGO asset
- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Active user identification

- **Purpose**: Identify unique participants to determine the daily user count
- **Logic**: Unique `sender` addresses are extracted from all recorded transactions on the network. These addresses are aggregated daily to produce the active users (daily) count for each 24-hour UTC window.
- **Key fields**: `sender` address (user identification)

### Component B: Fee aggregation and normalization

- **Purpose**: Calculate the total daily transaction fees in the native asset
- **Logic**: The `fee` value is extracted from every transaction where the fee is not null. These micro-ALGO amounts are summed by day. The total is then normalized by decimal precision to convert the value into the native ALGO asset.
- **Key fields**: `fee` (transaction cost)

### Component C: USD conversion

- **Purpose**: Standardize fee values for comparative analysis
- **Logic**: The daily native fee totals are multiplied by end-of-day price feeds for the ALGO asset. This step ensures all fee data is represented in USD using UTC day boundaries.

### Component D: Average fees per user calculation

- **Purpose**: Calculate the final mean fee per participant
- **Logic**: The total daily fees in USD are divided by the total number of unique active users (daily) for the corresponding day. In instances where no activity is recorded, the value is set to zero.

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

AlgorandALGO

Average fees per user (AFPU)

Average fees per user (AFPU)

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