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.

github

twitter

discord

etherscan

website

Blockchains (L1)

Avalanche

# Avalanche Revenue Methodology

## 1. Overview

Avalanche revenue represents the total USD value of transaction fees paid on the Avalanche blockchain. On Avalanche, all transaction fees are burned (permanently removed from circulation), making fees equivalent to protocol revenue. The metric captures the daily aggregate of all gas fees paid by users for transaction execution on the network.

## 2. Data sources

The calculation uses several key data sources:
- **Avalanche blockchain transaction records**: Raw transaction data containing gas usage metrics, effective gas prices, and transaction metadata
- **End-of-day WAVAX price feeds**: Daily closing prices for Wrapped AVAX (WAVAX) token to enable USD conversion
- **Token metadata**: Information about WAVAX token properties including decimal precision for accurate conversion calculations

## 3. Step-by-step calculation

### Component A: Transaction gas fee extraction
- **Purpose**: Extract gas fee information from individual Avalanche transactions
- **Logic**: Process all Avalanche blockchain transactions to identify gas-related fields. Convert the `receipt_effective_gas_price` from wei units to AVAX by dividing by 10^18 (since 1 AVAX = 10^18 wei). Extract the `receipt_gas_used` field representing the computational units consumed by each transaction. Associate each transaction with the WAVAX token address (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`) as the fee currency.
- **Key fields**: `block_timestamp`, `gas_used`, `effective_gas_price` (converted to AVAX), `token_address`

### Component B: Daily fee aggregation  
- **Purpose**: Calculate total daily fees paid on the Avalanche network
- **Logic**: For each transaction, multiply `gas_used` by `effective_gas_price` to determine the AVAX fee amount paid. Group all transactions by day (truncating timestamps to daily boundaries) and sum the fee amounts to get total daily fees in AVAX.
- **Key fields**: `timestamp` (daily), `fee_amount` (total AVAX fees per day)

### Component C: Metadata enrichment and USD conversion
- **Purpose**: Add business context and convert fees to USD values
- **Logic**: Apply standardized metadata labels including market sector (`blockchains_l1`), business segment (`blockchain`), and chain identifier (`avalanche`). Convert daily AVAX fee amounts to USD using end-of-day WAVAX price feeds. The conversion accounts for token decimal precision to ensure accurate USD calculations.
- **Key fields**: `market_sector_id`, `business_segment_id`, `chain_id`, `fees` (USD-denominated)

### Final aggregation
- **Combining components**: The fees calculation flows directly into the revenue metric since on Avalanche all fees are burned rather than distributed to validators or stakeholders
- **Currency conversion**: AVAX amounts are converted to USD using end-of-day WAVAX price feeds with proper decimal adjustments
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day-level granularity  
- **Final calculation**: Revenue equals the total USD value of daily transaction fees, with any missing days filled with zero values to maintain continuous time series data

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

AvalancheAVAX

Revenue

Revenue

Competitive landscape