# Chainflip Chain Median transaction fee Methodology

## 1. Overview

Median transaction fee is defined as the median fee paid across all transactions on Chainflip Chain. An estimate of the typical transaction cost incurred by users is provided by this metric, preventing skewing from exceptionally high or low fee values. Transaction fees on Chainflip Chain are composed of a base transaction fee and an optional tip, both of which are denominated in the native asset. By analyzing these fees, the economic throughput and cost efficiency of the network can be evaluated over time.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from the `transactionPayment` pallet, covering Chainflip Chain
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Extract transaction fees and tips from raw blockchain events
- **Logic**: `TransactionFeePaid` events from the `transactionPayment` pallet are parsed. The base fee amount and the tip amount are extracted from the event data payload. Both values are normalized by the decimal precision of the native asset. The total fee for each transaction is calculated by summing the normalized base fee and the tip.
- **Key fields**: `amount` (base fee), `tip` (optional transaction tip)

### Component B: Median fee calculation

- **Purpose**: Calculate the daily median transaction fee
- **Logic**: The total fee amounts are aggregated on a daily basis using UTC day boundaries. The median transaction fee is determined by calculating the 50th percentile of the total fee amounts across all transactions recorded within each day.
- **Key fields**: `fee_amount` (sum of base fee and tip)

### Component C: USD conversion and finalization

- **Purpose**: Convert the median transaction fee to USD and finalize the metric
- **Logic**: The daily median transaction fee is multiplied by the end-of-day price of the native asset to convert the value to USD. Missing days in the time series are filled with zeros to ensure continuity.
- **Key fields**: `transaction_fee_median` (median fee in native asset), `price_usd` (asset price)

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

Median transaction fee

Blockchains (L1)

Chainflip operates a decentralized network of 150 validators that collectively control multi-chain vaults using threshold signature schemes (TSS). The protocol uses a Just-In-Time (JIT) AMM where liquidity providers compete to fill swap orders at the moment of execution, enabling capital-efficient cross-chain swaps. A portion of each swap fee is used to buy and burn FLIP tokens.

Chainflip is a decentralized cross-chain swap protocol that enables native asset exchanges across blockchains including Bitcoin, Ethereum, and Solana without wrapped tokens or traditional bridges. It was launched in 2023 by Chainflip Labs and uses a JIT AMM model combined with MPC-based vault technology to provide competitive pricing on cross-chain trades.

Chainflip is governed by its validator set and FLIP tokenholders. Validators stake FLIP to participate in the network and earn fees from swaps. The protocol is developed and maintained by Chainflip Labs.