Network participants process transactions and receive fees from users (supply-side fees).

Cosmos Hub is an interoperability & security platform for blockchains and applications. Cosmos was founded by Ethan Buchman & Jae Kwon and launched in 2019.

ATOM holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Cosmos’s investors include Paradigm, IOSG Ventures, 1confirmation, etc.

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Cosmos Hub

# Cosmos Hub Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) for Cosmos measures the average amount of fees paid per daily active user on the Cosmos Hub. This metric answers the business question "How much does each user contribute in fees on average?" and is calculated by dividing total daily fees by the number of daily active users. The calculation combines regular transaction fees with Atomic Economic Zone (AEZ) fees, both converted to USD, then divides by the count of unique daily users.

## 2. Data sources

- **Cosmos Hub transaction records**: Transaction data containing fee amounts and transaction hashes
- **Cosmos Hub message event logs**: Event logs containing user addresses from message events and transfer events for AEZ fees
- **Token metadata registry**: Decimal precision data for proper token amount normalization
- **End-of-day cryptocurrency price feeds**: USD conversion rates for ATOM and AEZ tokens matched by CoinGecko identifiers
- **AEZ token denomination mappings**: Hardcoded mappings between token denominations (like `uatom`, IBC addresses) and their corresponding CoinGecko identifiers and symbols

## 3. Step-by-step calculation

### Component A: Daily active user calculation
- **Purpose**: Count unique users who performed transactions each day
- **Logic**: Extract user addresses from Cosmos Hub message events where `event_type` equals `message`. The user address is taken from the `sender` field in the event attributes. Truncate timestamps to daily boundaries and count distinct user addresses per day using HyperLogLog aggregation for efficiency. The aggregation creates breakdowns by project, chain, user type, and product dimensions while maintaining accurate distinct counts across all dimensions.
- **Key fields**: `block_timestamp` for daily grouping, `user_address` from `sender` field for distinct counting, `user_type` set to "Transaction sender"

### Component B: Regular transaction fees calculation  
- **Purpose**: Calculate total fees from standard Cosmos Hub transactions
- **Logic**: Sum `transaction_fee` amounts from Cosmos Hub transaction records. The fees are already normalized from `uatom` to `ATOM` by dividing by 10^6. Group transactions by day using timestamp truncation. Convert the ATOM amounts to USD using end-of-day price feeds matched by the `cosmos` CoinGecko identifier.
- **Key fields**: `transaction_fee` for fee amounts, `block_timestamp` for daily aggregation, `unit` showing `uatom` denomination

### Component C: AEZ fees calculation
- **Purpose**: Calculate fees from Atomic Economic Zone transfers to the Cosmos Hub
- **Logic**: Extract transfer events from Cosmos Hub message events where `event_type` equals `transfer` and the `recipient` address is `cosmos1ap0mh6xzfn8943urr84q6ae7zfnar48am2erhd`. Parse the `amount` field using regex to separate numeric amounts from token denominations. The amount field contains values like "12345uatom" requiring extraction of the numeric portion and token identifier. Map token denominations to CoinGecko identifiers using hardcoded token mappings. Normalize amounts using token decimal metadata and convert to USD using end-of-day price feeds.
- **Key fields**: `amount` field containing string values like "12345uatom", `recipient` for filtering hub transfers, `token_address` from parsed denomination

### Final aggregation
- **Combining components**: Sum USD-converted fees from regular transactions and AEZ transfers by day, grouping by timestamp, chain, market sector, and business segment
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds matched by CoinGecko identifiers before summation
- **Time aggregation**: Both fees and user counts are aggregated to daily boundaries using timestamp truncation to day
- **Final calculation**: Divide total daily fees in USD by the daily active user count using the `calculate_arpu` macro, which performs the division operation to produce average fees per user in USD

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

Cosmos HubATOM

Average fees per user (AFPU)

Average fees per user (AFPU)

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