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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Blockchains (L1)

Avalanche

# Avalanche Fees Methodology

## 1. Overview

The Avalanche fees metric measures the total transaction fees paid by users on the Avalanche network, expressed in USD. This metric captures the economic activity and network usage by aggregating all gas fees from transactions executed on Avalanche's C-Chain. Fees are initially calculated in WAVAX (Wrapped AVAX) tokens and then converted to USD using end-of-day price feeds.

## 2. Data sources

- **Avalanche blockchain transaction records**: Complete transaction data from Avalanche's C-Chain including gas usage, effective gas prices, transaction hashes, sender/receiver addresses, and block timestamps
- **End-of-day token price feeds**: USD pricing data for WAVAX token to enable currency conversion
- **Token metadata**: WAVAX token information including contract address (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`) and decimal precision

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract all transaction-level gas fee information from Avalanche blockchain data
- **Logic**: Pull all transactions from Avalanche transaction records, focusing on gas-related fields. The `receipt_gas_used` field shows actual gas consumed by each transaction, while `receipt_effective_gas_price` shows the gas price paid (originally in wei units). Convert the effective gas price from wei to AVAX by dividing by 10^18. Include transaction identifiers (`transaction_hash`), participant addresses (`from_address`, `to_address`), block information (`block_number`, `block_timestamp`), and chain identifier
- **Key fields**: `gas_used` (actual gas consumed), `effective_gas_price` (converted to AVAX units), `transaction_hash`, `block_timestamp`, `from_address`, `to_address`

### Component B: Daily fee aggregation  
- **Purpose**: Calculate total daily transaction fees in WAVAX tokens
- **Logic**: Group all transactions by day using timestamp truncation to day boundaries. For each transaction, calculate the fee amount by multiplying `gas_used` by `effective_gas_price` (both now in AVAX units). Sum these individual transaction fees for each day to get total daily fees paid on the network
- **Key fields**: `timestamp` (truncated to day), `fee_amount` (sum of all transaction fees in WAVAX)

### Final aggregation
- **Combining components**: The daily aggregated fees in WAVAX are passed directly to the final metric calculation
- **Currency conversion**: Apply USD conversion using end-of-day WAVAX price feeds through the convert_to_usd_and_correct_decimals macro. Since gas prices are already converted to AVAX units (18 decimals), decimal correction is disabled
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: The final metric value represents total daily transaction fees paid on Avalanche network in USD. The metric includes standardized metadata: market sector as 'blockchains_l1', business segment as 'blockchain', chain identifier as 'avalanche', and token address pointing to WAVAX contract. Any missing days are filled with zero values to ensure complete time series data

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

Total value users pay to use a protocol (gross fees, user-paid fees).

AvalancheAVAX

Fees

Fees

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