# Flow Fees Methodology

## 1. Overview

Fees measures the total value paid by users to perform transactions and execute smart contracts on the Flow network. This metric encompasses fees generated across both the native Cadence-based environment (Flow) and the Ethereum Virtual Machine compatible layer (Flow EVM). Collected fees represent the gross economic value generated by the network's usage and are denominated in the native `Flow` asset.

## 2. Data sources

- **Blockchain events**: Native transaction data from Flow and Flow EVM
- **External data**: End-of-day price feeds for the `Flow` asset

## 3. Step-by-step calculation

### Component A: Flow transaction fee extraction

- **Purpose**: Captures transaction fees from the native Flow Cadence environment
- **Logic**: Transaction data is parsed to identify the `fee_amount` paid by the transaction payer. These values represent the total native fees associated with transaction execution within the Cadence environment.
- **Key fields**: `fee_amount` (fee quantities), `payer` (transaction initiator)

### Component B: Flow EVM gas fee calculation

- **Purpose**: Calculates gas fees for transactions occurring on Flow EVM
- **Logic**: Gas fees are calculated by multiplying the gas used by the gas price for each transaction. These values represent the native execution costs for transactions within the EVM-compatible environment.
- **Key fields**: `receipt_gas_used` (computational resources consumed), `gas_price` (cost per unit of gas)

### Component C: Normalization and USD conversion

- **Purpose**: Normalizes native asset values and converts them to USD for standardized reporting
- **Logic**: Native fee amounts from Flow and Flow EVM are normalized by decimal precision. These normalized amounts are multiplied by end-of-day price feeds for the `Flow` asset. Results from both environments are aggregated to daily granularity using UTC day boundaries.
- **Key fields**: `block_timestamp` (timing), `token_address` (asset identification)

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Blockchains (L1)

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

Flow is a smart contract platform for decentralized applications (a blockchain). Flow was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and launched in 2019.

FLOW holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Flow’s investors include a16z, Coatue, Coinfund, Fabric Ventures, etc.

Flow

Fees

Fees

Chain breakdown