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 Median transaction fee Methodology

## 1. Overview

The Avalanche transaction fee median metric measures the middle value of all transaction fees paid on the Avalanche blockchain each day. This metric provides insight into typical transaction costs users experience, filtering out both very cheap and very expensive transactions to show the median fee level. The calculation involves extracting all transactions, computing individual transaction fees based on gas usage and pricing, then finding the 50th percentile value daily.

## 2. Data sources

- **Avalanche transaction records**: Complete transaction data from the Avalanche blockchain including transaction hashes, gas usage (`receipt_gas_used`), effective gas prices (`receipt_effective_gas_price`), block timestamps, and address information
- **End-of-day WAVAX price feeds**: Daily WAVAX token price data used for USD conversion, since transaction fees on Avalanche are paid in AVAX
- **Token metadata**: WAVAX token contract information including the token address (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`) and decimal precision handling

## 3. Step-by-step calculation

### Component A: Transaction facts extraction
- **Purpose**: Extract and standardize all Avalanche transaction data with gas information
- **Logic**: Retrieves all transactions from Avalanche blockchain records, extracting key fields including block timestamp, transaction hash, from/to addresses, gas used, and effective gas price. The effective gas price is converted from wei to AVAX by dividing by 10^18. Each transaction is tagged with the chain identifier 'avalanche' and associated with the WAVAX token address for fee denomination
- **Key fields**: `block_timestamp`, `transaction_hash`, `gas_used`, `effective_gas_price` (converted to AVAX), `token_address`

### Component B: Individual transaction fee calculation  
- **Purpose**: Calculate the actual fee paid for each transaction
- **Logic**: For each transaction, computes the total fee by multiplying `gas_used` by `effective_gas_price`. Uses COALESCE to handle any null values by defaulting to 0. This produces the actual AVAX amount paid as transaction fee for each individual transaction
- **Key fields**: `block_timestamp`, `fee_amount` (gas_used × effective_gas_price)

### Component C: Daily median aggregation
- **Purpose**: Calculate the median transaction fee for each day
- **Logic**: Groups all transactions by day using timestamp truncation to daily boundaries. For each day, calculates the median fee using the `APPROX_QUANTILES` function with 100 buckets, taking the 50th percentile (OFFSET 50) to get the median value. This approach handles large volumes of transactions efficiently while providing an accurate median estimate
- **Key fields**: `timestamp` (daily), `transaction_fee_median`

### Final aggregation
- **Combining components**: The daily median values flow directly from the intermediate calculation to the final metric without additional aggregation
- **Currency conversion**: USD conversion is applied using the `convert_to_usd_and_correct_decimals` macro, which joins the daily median values with end-of-day WAVAX price feeds to convert from AVAX to USD amounts
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with the median calculated across all transactions within each day
- **Final calculation**: The final metric represents the daily median transaction fee in USD, with a zero-filling strategy applied for any days with missing data to ensure complete time series coverage

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

AvalancheAVAX

Median transaction fee

Median transaction fee

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