# Arc Median transaction fee Methodology

## 1. Overview

Median transaction fee is defined as the median fee paid across all transactions on Arc. The cost of a typical transaction for a user is represented by this metric, which prevents skewing from exceptionally high or low fee values. Because Arc is an independent Layer 1 network where gas fees are paid directly in USD Coin, transaction fees are natively denominated in USD. The economic usability and cost efficiency of the Arc network are evaluated using this metric over time.

## 2. Data sources

- **Blockchain events**: Transaction execution data, including gas used and effective gas price, captured from the Arc network

## 3. Step-by-step calculation

### Component A: Arc transaction fee extraction

- **Purpose**: Extraction of gas parameters and calculation of individual transaction fees
- **Logic**: Transaction data is parsed to extract the gas used and the effective gas price for each transaction. The transaction fee is calculated by multiplying the gas used by the effective gas price. Since gas on Arc is paid in USD Coin, the calculated fee is normalized by decimal precision to yield the transaction fee directly in USD without requiring external price feeds
- **Key fields**: `gas_used`, `gas_price`, `block_timestamp`

### Component B: Arc median fee calculation

- **Purpose**: Determination of the daily median transaction fee
- **Logic**: Transaction fees are grouped by day using UTC boundaries. For each day, the median transaction fee is calculated by computing the 50th percentile of all transaction fees processed on that day. The typical fee paid by a user on Arc is represented by this value
- **Key fields**: `fee_amount`, `block_timestamp`

### Component C: Final aggregation and zero-filling

- **Purpose**: Standardization of the metric output and preservation of continuous daily data
- **Logic**: Daily median transaction fees are cast to standard data types and validated against active chain and product identifiers. A zero-filling strategy is applied to ensure that days with no transaction activity are represented with a fee of zero, maintaining a continuous daily time series
- **Key fields**: `transaction_fee_median`, `timestamp`

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

Median transaction fee

Blockchains (L1)

Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.