# Celo L2 Fees Methodology

## 1. Overview

Fees is calculated as the total value paid by users for transaction execution and smart contract interactions on Celo L2. This metric represents the economic value generated by network activity, specifically covering the period starting from the network's transition to a Layer 2 architecture on March 26, 2025. Fees are paid using various supported assets, including the native Celo L1 (legacy) asset and stablecoins such as USDT.

## 2. Data sources

- **Blockchain events**: Transaction-level data including gas usage, gas prices, and fee currency identifiers on Celo L2
- **External data**: End-of-day price feeds for assets used as fee currencies

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Calculate the raw cost of transaction execution on the L2 network.
- **Logic**: For transactions occurring on or after March 26, 2025, gas fees are determined by multiplying the gas price by the gas used for each transaction. The `gas_price` and `receipt_gas_used` fields are extracted from transaction records to derive the total fee amount per execution.
- **Key fields**: `gas_price`, `receipt_gas_used`

### Component B: Fee asset identification

- **Purpose**: Identify the specific asset used by the user to pay for transaction fees.
- **Logic**: The asset used for payment is identified via the `fee_currency` field. If no specific currency is specified, the native Celo L1 (legacy) asset is assigned as the fee token. For specific supported assets like USDT, the address is mapped to standardized asset metadata to ensure accurate valuation during the conversion process.
- **Key fields**: `fee_currency`, `token_address`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize fee values into a common currency for reporting.
- **Logic**: Fee amounts are normalized by decimal precision based on the identified asset. These values are then multiplied by end-of-day price feeds to calculate the USD equivalent. The resulting data is aggregated to daily granularity using UTC day boundaries, with missing values filled with zeros to maintain a continuous time series.
- **Key fields**: `block_timestamp`, `fees` (USD)

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

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

Fees

Blockchains (L2)

Validators process transactions and receive fees from users (supply-side fees).

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

Celo L2

Fees

Fees

Chain breakdown