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 Median transaction fee Methodology

## 1. Overview

The Cosmos transaction fee median metric measures the median daily transaction fee paid on the Cosmos Hub blockchain, expressed in USD. This metric provides insight into the typical cost of transacting on the Cosmos network by calculating the middle value of all transaction fees paid each day. The median is preferred over the mean as it's less sensitive to outlier transactions and provides a better representation of what typical users pay for transactions.

## 2. Data sources

The calculation relies on the following data sources:
- **Cosmos Hub transaction records**: Complete transaction history from the Cosmos Hub blockchain containing transaction hashes, block timestamps, and fee amounts paid in native ATOM tokens
- **End-of-day price feeds**: CoinGecko price data for the ATOM token to enable USD conversion of native fee amounts
- **Token metadata**: ATOM token specifications including decimal precision for proper unit conversion

## 3. Step-by-step calculation

### Component A: Transaction data extraction and normalization
- **Purpose**: Extract raw transaction data from Cosmos Hub and normalize fee amounts to standard ATOM units
- **Logic**: Raw transaction records are pulled from Cosmos Hub blockchain data, including block timestamps, transaction hashes, and fee amounts. Transaction fees are originally recorded in micro-ATOM units (uatom) and are converted to ATOM by dividing by 10^6 (1,000,000). Each transaction record is tagged with the unit identifier as 'uatom' to track the original denomination.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for unique identification, `transaction_fee` normalized to ATOM units, and `unit` identifier

### Component B: Daily median calculation
- **Purpose**: Calculate the median transaction fee for each day, filtering out zero-fee transactions
- **Logic**: Transaction data is grouped by day using timestamp truncation to daily boundaries. Zero-fee transactions are excluded from the calculation as they represent special transaction types that don't reflect typical user costs. The median fee is calculated using the approximate quantiles function at the 50th percentile, which efficiently computes the middle value of all transaction fees for each day. Each daily record is tagged with Cosmos chain identifiers and CoinGecko token ID for downstream processing.
- **Key fields**: `daily_timestamp` and `timestamp` set to day boundaries, `timestamp_grain` as 'day', `chain_id` and `coingecko_id` both set to 'cosmos', `transaction_fee_median` containing the calculated median value

### Component C: USD conversion and finalization
- **Purpose**: Convert median fees from ATOM to USD and apply final metric formatting
- **Logic**: The daily median transaction fees in ATOM are converted to USD using CoinGecko end-of-day price feeds for the ATOM token. The conversion process matches daily fee calculations with corresponding daily price data to ensure consistent timing. Final metric formatting is applied including standardized field names and data types. Chain availability filtering is applied to ensure only data from periods when the Cosmos chain was operational is included in the final results.
- **Key fields**: All previous fields plus USD-denominated fee amounts and standardized metric metadata

### Final aggregation
- **Combining components**: The three components flow sequentially with each stage building on the previous - raw transaction extraction feeds into daily median calculation, which then feeds into USD conversion and finalization
- **Currency conversion**: USD conversion uses end-of-day CoinGecko price feeds matched to the same daily timestamp as the median calculation, ensuring temporal alignment between fee calculations and price data
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day precision, with all transactions within a calendar day contributing to that day's median calculation
- **Final calculation**: The final metric represents the median transaction fee paid on Cosmos Hub for each day, expressed in USD, calculated by taking the 50th percentile of all non-zero transaction fees for that day and converting to USD using end-of-day ATOM prices

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

Cosmos HubATOM

Median transaction fee

Median transaction fee

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