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 transaction fee Methodology

## 1. Overview

The Cosmos average transaction fee metric measures the mean cost per transaction on the Cosmos Hub blockchain, denominated in USD. This metric provides insight into the economic activity and cost efficiency of using the Cosmos network. The calculation combines regular transaction fees paid by users with Atom Economic Zone (AEZ) fees paid by other chains for validator security services, then divides by the total number of transactions to determine the average fee per transaction.

## 2. Data sources

- **Cosmos Hub transaction records**: Complete transaction data including transaction hashes, timestamps, block heights, and transaction fee amounts in native ATOM tokens
- **Cosmos Hub message event logs**: Blockchain event logs containing `transfer` events, specifically those with the hub's recipient address for AEZ fee extraction
- **End-of-day token price feeds**: Daily closing prices for ATOM and other AEZ zone tokens used for USD conversion
- **Token metadata**: Information about token properties including decimal places for proper normalization
- **AEZ token definitions**: Hardcoded mappings of token denominations to coingecko identifiers, including IBC tokens and staked derivatives like stATOM, stOSMO, stTIA, and others

## 3. Step-by-step calculation

### Component A: Transaction count calculation
- **Purpose**: Count the total number of unique transactions per day on Cosmos Hub
- **Logic**: Extract all transaction records from Cosmos Hub blockchain data, filter by block timestamp, and count distinct values of `transaction_hash` field grouped by day. This provides the denominator for the average calculation
- **Key fields**: `transaction_hash` for uniqueness, `block_timestamp` for daily grouping

### Component B: Regular transaction fees
- **Purpose**: Calculate total fees paid directly through regular Cosmos Hub transactions
- **Logic**: Extract transaction fee amounts from Cosmos Hub transaction records. The `transaction_fee` field contains fee amounts in the smallest unit of ATOM (uatom). Normalize by dividing by 10^6 to convert to full ATOM units. Aggregate all fees by day using timestamp truncation
- **Key fields**: `transaction_fee` for fee amounts, `block_timestamp` for daily aggregation, `unit` field indicating the fee token (uatom)

### Component C: AEZ fees extraction
- **Purpose**: Capture fees paid by other chains in the Atom Economic Zone for Cosmos Hub validator security services
- **Logic**: Parse message event logs for `transfer` events where the recipient address equals the specific hub recipient address `cosmos1ap0mh6xzfn8943urr84q6ae7zfnar48am2erhd`. Extract fee amounts from the JSON `amount` field using regex pattern matching to separate numeric values from token denominations. The amount is stored as a string like "1000uatom" requiring regex parsing
- **Key fields**: `event_type` filtered to 'transfer', `recipient` address for filtering, `amount` field containing both value and token denom

### Component D: AEZ token mapping and normalization
- **Purpose**: Convert AEZ fees in various tokens to normalized amounts for USD conversion
- **Logic**: Map extracted token denominations to coingecko identifiers using hardcoded token definitions. This includes mapping IBC tokens (prefixed with 'ibc/') and staked derivatives like stATOM, stOSMO, stTIA to their respective coingecko IDs. Normalize amounts by dividing by the appropriate decimal places for each token type
- **Key fields**: `token_denom` for mapping, `coingecko_id` for price lookup, `decimals` for normalization

### Component E: USD conversion
- **Purpose**: Convert all fee amounts from native tokens to USD for consistent reporting
- **Logic**: Apply USD conversion using end-of-day price feeds matched by coingecko identifier and timestamp. This converts both regular ATOM fees and various AEZ token fees to USD equivalents using daily closing prices
- **Key fields**: `coingecko_id` for price matching, daily timestamp for price lookup, normalized fee amounts

### Final aggregation
- **Combining components**: Sum both regular transaction fees and AEZ fees after USD conversion to get total daily fee revenue in USD
- **Currency conversion**: All fees converted to USD using end-of-day price feeds matched by token coingecko identifier and date
- **Time aggregation**: All data aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Divide total daily fees in USD by total daily transaction count using safe division to handle days with zero transactions, producing the average transaction fee in USD per transaction

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

Cosmos HubATOM

Average transaction fee

Average transaction fee

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