Validators process transactions and receive validator rewards (supply-side fees).

AVAX is a smart contract platform for decentralized applications (a blockchain). Avalanche was founded by Emin Gün Sirer and launched in 2019.

AVAX holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). AVAXs investors include a16z, Polychain, Galaxy Digital, etc.

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Avalanche

# Avalanche Average fees per user (AFPU) Methodology

## 1. Overview

The Avalanche average fees per user (AFPU) metric measures the average transaction fees paid per daily active user on the Avalanche blockchain. It is calculated by dividing the total daily fees collected by the network by the number of unique users who sent transactions on that day. This metric provides insights into user engagement economics and the cost burden per active participant on the Avalanche network.

## 2. Data sources

The AFPU calculation relies on the following raw data sources:

- **Avalanche transaction records**: Complete transaction data from the Avalanche blockchain including sender addresses, gas usage, effective gas prices, and block timestamps
- **End-of-day token price feeds**: Price data for WAVAX (Wrapped AVAX) to convert native token amounts to USD values
- **WAVAX token metadata**: Contract address and decimal precision information for the wrapped AVAX token (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`)

## 3. Step-by-step calculation

### Component A: Daily active user identification

- **Purpose**: Identify and count unique users who sent transactions each day
- **Logic**: Extract the `from_address` field from all Avalanche transactions and classify these addresses as "Transaction sender" user types within the "blockchains_l1" market sector. Group transactions by day using timestamp truncation and count distinct sender addresses using HyperLogLog aggregation for scalability. The user counting includes dimensional breakdowns by chain, user type, and product level.
- **Key fields**: `from_address` (user identifier), `block_timestamp` (for daily aggregation), `user_type` (set to "Transaction sender")

### Component B: Daily fee calculation

- **Purpose**: Calculate total transaction fees collected by the network each day
- **Logic**: Process Avalanche transaction records to extract gas usage and pricing information. Convert the `receipt_effective_gas_price` from wei to AVAX by dividing by 10^18. Calculate individual transaction fees by multiplying `receipt_gas_used` by the converted effective gas price. Sum all transaction fees by day using timestamp truncation. Convert the AVAX-denominated fee totals to USD using end-of-day WAVAX price feeds.
- **Key fields**: `receipt_gas_used` (gas consumed), `receipt_effective_gas_price` (gas price in wei), `block_timestamp` (for daily aggregation)

### Final aggregation

- **Combining components**: The daily active user counts and daily fee totals are joined by date to create matched pairs of users and fees for each day
- **Currency conversion**: All fee amounts are converted from AVAX to USD using end-of-day price feeds to ensure consistent currency representation
- **Time aggregation**: Both user counts and fee totals use daily boundaries determined by truncating block timestamps to day granularity
- **Final calculation**: The AFPU is calculated by dividing the total daily fees in USD by the count of unique daily active users. Days with no activity are filled with zero values to maintain complete time series continuity. The result represents the average fees paid per user per day on the Avalanche network.

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

AvalancheAVAX

Average fees per user (AFPU)

Average fees per user (AFPU)

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