Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

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Arbitrum One

# Arbitrum One Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average amount of fees paid by an individual active user on Arbitrum One over a fixed 24-hour window. The daily cost of transacting on the network for a typical user is reflected by this metric. It is calculated by dividing the total daily fees—comprising L2 gas fees, Timeboost auction fees, and Arbitrum Expansion Program license fees—by the active users (daily). Insights into user unit economics and the fee-generation efficiency of the network are provided to institutional investors through this metric.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: L2 gas fee extraction

- **Purpose**: Captures the standard transaction fees paid by users on Arbitrum One.
- **Logic**: Transaction data is parsed from the Arbitrum chain. For each transaction, the gas used is multiplied by the effective gas price to determine the L2 gas fee. Amounts are normalized by decimal precision.
- **Key fields**: `gas_used`, `gas_price`

### Component B: Timeboost auction fee extraction

- **Purpose**: Captures fees generated from Timeboost express lane auctions.
- **Logic**: `AuctionResolved` events from `ExpressLaneAuction` contracts on the Arbitrum chain are parsed. The auction price is extracted and normalized by decimal precision to determine the Timeboost fee.
- **Key fields**: `price`

### Component C: Arbitrum Expansion Program license fee extraction

- **Purpose**: Captures license fees earned from participating chains in the Arbitrum Expansion Program.
- **Logic**: Native asset flows on Robinhood Chain are analyzed for designated fee distributor accounts. Net fee inflows are calculated by subtracting refund outflows from fee inflows. The licensed share of these inflows is calculated by applying the configured Arbitrum Expansion Program fee rate.
- **Key fields**: `value`, `category`, `account_address`

### Component D: active users (daily) tracking

- **Purpose**: Identifies the number of unique users transacting on the network daily.
- **Logic**: Transaction data is analyzed to extract the unique sender addresses for each day. The total count of unique sender addresses is aggregated to determine the active users (daily).
- **Key fields**: `from_address`

### Component E: USD conversion and average fee calculation

- **Purpose**: Normalizes fee values to USD and calculates the average fees paid per active user.
- **Logic**: Daily L2 gas fees, Timeboost fees, and Arbitrum Expansion Program license fees are aggregated. These fee amounts are converted to USD using end-of-day price feeds. The total daily fee volume in USD is then divided by the active users (daily) count to compute the average fees per user (AFPU). Daily granularity is maintained using UTC day boundaries.

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

Arbitrum OneARB

Average fees per user (AFPU)

Average fees per user (AFPU)

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