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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Celo

# Celo Median transaction fee Methodology

## 1. Overview

The Celo L1 (legacy) transaction fee median metric calculates the median transaction fee paid by users on the Celo L1 (legacy) blockchain on a daily basis. This metric provides insight into the typical cost of transacting on Celo L1 (legacy) and tracks fee trends over time. The calculation accounts for Celo L1 (legacy)'s transition from its original mainnet to Celo L1 (legacy) L2 architecture on March 26, 2025, with different fee calculation methodologies for each phase.

## 2. Data sources

- **Celo L1 (legacy) blockchain transactions**: Raw transaction records from the Celo L1 (legacy) blockchain containing gas usage, gas prices, effective gas prices, fee currencies, block timestamps, and transaction metadata
- **End-of-day token price feeds**: Daily closing price data for tokens used to pay transaction fees, enabling USD conversion
- **Token metadata**: Decimal precision information for proper unit conversion and standardization

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize raw transaction data from the Celo L1 (legacy) blockchain
- **Logic**: Retrieve all transaction records from Celo L1 (legacy) blockchain data, including block timestamps, transaction hashes, gas usage amounts, gas prices, effective gas prices, and fee currency addresses. When no fee currency is specified, default to the Celo L1 (legacy) native token address. Apply decimal correction to the `effective_gas_price` field by dividing by 10^18 to convert from wei to standard units. Split processing based on timestamp relative to March 26, 2025 to handle the transition from Celo L1 (legacy) mainnet to Celo L1 (legacy) L2
- **Key fields**: `block_timestamp`, `gas_used`, `gas_price`, `effective_gas_price`, `token_address` (fee currency), `transaction_hash`, `chain`

### Component B: Gas fee calculation with network-specific logic
- **Purpose**: Calculate the actual gas fee paid for each transaction using network-appropriate formulas
- **Logic**: Apply different calculation methods based on the network version. For transactions before March 26, 2025 on Celo L1 (legacy) mainnet, calculate gas fee as `gas_used` multiplied by `effective_gas_price`. For transactions on or after March 26, 2025 on Celo L1 (legacy) L2, calculate gas fee as `gas_price` multiplied by `gas_used` divided by 1e18. This accounts for the different gas pricing mechanisms between the original Celo L1 (legacy) network and the L2 implementation
- **Key fields**: `gas_fee` (calculated), `block_timestamp`, `token_address`, `chain`

### Component C: USD conversion
- **Purpose**: Convert gas fees from native token amounts to USD values for standardized comparison
- **Logic**: Apply the `convert_to_usd_and_correct_decimals` macro to transform gas fees from native token units to USD. Use end-of-day price feeds to determine exchange rates. The conversion accounts for token decimal precision to ensure accurate unit conversion
- **Key fields**: `fee_amount` (USD-converted gas fees)

### Component D: Daily median calculation
- **Purpose**: Calculate the median transaction fee for each day and fee token
- **Logic**: Group transactions by daily timestamp, product identifier (Celo L1 (legacy) for pre-2025-03-26 transactions, Celo L1 (legacy) L2 for post-2025-03-26 transactions), chain identifier, and fee token address. For each group, calculate the median fee using the 50th percentile of the `approx_quantiles` statistical function with 100 quantiles
- **Key fields**: `transaction_fee_median`, `timestamp`, `product_id`, `chain_id`, `token_address`

### Final aggregation
- **Combining components**: The gas fee calculation, USD conversion, and median calculation flow sequentially through the processing pipeline
- **Currency conversion**: All fees are converted to USD using end-of-day price feeds and appropriate decimal corrections
- **Time aggregation**: Transaction timestamps are truncated to daily boundaries using timestamp truncation to day granularity
- **Final calculation**: The median transaction fee is calculated as the 50th percentile of all transaction fees for each day-product-chain-token combination using statistical quantile analysis

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

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Median transaction fee

Median transaction fee

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