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.

governance

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Blockchains (L2)

Celo

# Celo Fees Methodology

## 1. Overview

The Celo L1 (legacy) fees metric measures the total daily transaction fees paid on the Celo L1 (legacy) blockchain, converted to USD. This metric captures network usage and fee generation, accounting for Celo L1 (legacy)'s unique multi-token fee payment system and its transition from L1 to L2 architecture in March 2025. The calculation sums all transaction fees across the network and converts them to USD using end-of-day price feeds.

## 2. Data sources

- **Celo L1 (legacy) blockchain transaction records**: Raw transaction data including gas usage, gas prices, effective gas prices, fee currencies, timestamps, and transaction hashes
- **End-of-day token price feeds**: Daily token prices for USD conversion of fee amounts paid in various tokens
- **Token metadata**: Decimal precision information for proper fee amount calculations

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize transaction data from Celo L1 (legacy) blockchain records
- **Logic**: Pull all transaction records with relevant gas and fee information. Cast fields to appropriate data types including `block_timestamp`, `gas_used`, `gas_price`, and `effective_gas_price`. Handle the fee currency field by defaulting to the native Celo L1 (legacy) token address (`0x471ece3750da237f93b8e339c536989b8978a438`) when `fee_currency` is null. Apply time-based filtering to separate L1 and L2 periods using the March 26, 2025 transition date.
- **Key fields**: `block_timestamp` for daily aggregation, `gas_used` and `gas_price` for fee calculation, `effective_gas_price` for L1 calculations, `fee_currency` for identifying payment token

### Component B: Gas fee calculation
- **Purpose**: Calculate the actual fee amount paid for each transaction, accounting for different calculation methods between L1 and L2 periods
- **Logic**: For L1 period (before 2025-03-26): multiply `gas_used` by `effective_gas_price` where the effective gas price is already properly scaled by dividing by 10^18. For L2 period (after 2025-03-26): multiply `gas_price` by `gas_used`, then divide the result by 1e18 to convert from wei to token units. This difference reflects the protocol's architectural change from L1 to L2 operations and different gas price mechanisms.
- **Key fields**: `gas_fee` as the calculated fee amount, `token_address` identifying the fee payment token, `chain` identifier set to 'Celo L1 (legacy)'

### Component C: USD conversion
- **Purpose**: Convert all fee amounts from their native token denominations to USD values
- **Logic**: Match each transaction's fee amount with end-of-day price data based on the `token_address` and transaction date. Apply USD conversion using the daily price feeds without decimal correction since fees are already properly scaled. Handle multiple fee currencies that may be used on Celo L1 (legacy) network.
- **Key fields**: USD-converted `fees` amount, `timestamp` for price matching, `token_address` for price lookup

### Final aggregation
- **Combining components**: Sum all USD-converted transaction fees by day to get total daily fee revenue
- **Currency conversion**: All fees converted to USD using end-of-day prices matched by token and date
- **Time aggregation**: Daily boundaries using timestamp truncation to day level, with proper timezone handling
- **Final calculation**: Total daily fees equals the sum of all individual transaction fees (gas_used × effective_gas_price for L1, or gas_price × gas_used ÷ 1e18 for L2) converted to USD and aggregated by day. Business categorization applies with L1 period classified as 'blockchains_l1' market sector and L2 period as 'blockchains_l2' market sector.

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

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

CeloCELO

Fees

Fees

Competitive landscape

Chain breakdown