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.

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Blockchains (L2)

Celo

# Celo Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average amount of transaction fees paid per daily active user on the Celo L1 (legacy) network. This metric provides insights into user engagement economics and fee sustainability by dividing total daily fees collected by the number of unique users transacting each day. The calculation accounts for Celo L1 (legacy)'s transition from L1 to L2 operation on March 26, 2025, which changes both fee calculation methodology and network classification.

## 2. Data sources

- **Celo L1 (legacy) blockchain transaction records**: Complete transaction data including sender addresses, gas usage, gas prices, effective gas prices, fee currencies, and transaction timestamps
- **End-of-day token price feeds**: USD price data for Celo L1 (legacy) native tokens and other fee currencies used for payments
- **Token metadata**: Decimal precision information for accurate fee amount calculations

## 3. Step-by-step calculation

### Component A: Daily fees calculation

- **Purpose**: Calculate total fees collected daily from Celo L1 (legacy) network transactions
- **Logic**: Extract all Celo L1 (legacy) blockchain transactions and compute gas fees using time-period specific formulas. For transactions before March 26, 2025, multiply `gas_used` by `effective_gas_price` (already adjusted for decimals). For transactions from March 26, 2025 onward, multiply `gas_price` by `gas_used` and divide by 1e18 to account for L2 fee structure changes. Default to Celo L1 (legacy) native token address `0x471ece3750da237f93b8e339c536989b8978a438` when `fee_currency` is not specified. Aggregate all gas fees by day and convert amounts to USD using end-of-day price feeds
- **Key fields**: `gas_used`, `effective_gas_price`, `gas_price`, `fee_currency`, `block_timestamp`

### Component B: Daily active users calculation  

- **Purpose**: Count distinct users transacting daily on Celo L1 (legacy) network
- **Logic**: Identify unique transaction senders by extracting `from_address` from all Celo L1 (legacy) transactions. Group transactions by day and count distinct sender addresses using HyperLogLog aggregation for efficient computation. Classify users with market sector as `blockchains_l1` and product as `Celo L1 (legacy)` for transactions before March 26, 2025, and as `blockchains_l2` and product as `Celo L1 (legacy) L2` for transactions from March 26, 2025 onward. Users are categorized as `Transaction sender` type
- **Key fields**: `from_address`, `block_timestamp`, `user_type`, `market_sector_id`, `product_id`

### Final aggregation

- **Combining components**: Join daily fee totals with daily active user counts by matching on the same calendar day
- **Currency conversion**: All fees converted to USD using end-of-day price feeds with appropriate decimal adjustments for token precision
- **Time aggregation**: Data aggregated to daily boundaries using day-truncated timestamps
- **Final calculation**: Divide total daily fees in USD by the count of daily active users to produce average fees per user. Apply zero-filling strategy for days with missing data to maintain consistent time series

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

CeloCELO

Average fees per user (AFPU)

Average fees per user (AFPU)

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