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.

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Flow

# Flow Average transaction fee Methodology

## 1. Overview

The Flow average transaction fee metric measures the mean cost per transaction across Flow's hybrid blockchain architecture, which includes both the native Cadence environment and the EVM-compatible layer (Flow EVM). This metric answers the business question: "What is the typical cost for users to execute transactions on the Flow network?" The calculation divides total daily transaction fees by total daily transaction count, providing insight into the network's fee efficiency and user costs.

## 2. Data sources

- **Flow blockchain transaction records**: Native Flow Cadence transaction data including fee amounts, payer addresses, and transaction metadata
- **Flow EVM transaction records**: EVM-compatible layer transaction data including gas usage, gas prices, sender/receiver addresses, and transaction hashes
- **End-of-day FLOW token price feeds**: CoinGecko price data for converting native FLOW token amounts to USD
- **Flow blockchain event logs**: Transaction execution logs and block metadata for both Cadence and EVM environments
- **Gas usage and pricing data**: Flow EVM gas consumption metrics and pricing information for fee calculations

## 3. Step-by-step calculation

### Component A: Flow EVM fee calculation
- **Purpose**: Calculate transaction fees for the EVM-compatible layer of Flow blockchain
- **Logic**: Extract Flow EVM transaction records including gas usage and gas price data. Calculate individual transaction fees by multiplying `gas_used` by `gas_price` and dividing by 1e18 to adjust for 18 decimal places. Aggregate these calculated fees by day using timestamp truncation. Convert the resulting native FLOW token amounts to USD using the standard currency conversion process with end-of-day price feeds.
- **Key fields**: `gas_used` (gas consumed), `gas_price` (price per gas unit), `block_timestamp` (transaction timing), `transaction_hash` (unique transaction identifier)

### Component B: Flow fee calculation
- **Purpose**: Calculate transaction fees for Flow's native Cadence environment
- **Logic**: Extract Flow transaction records which include pre-calculated fee amounts in native FLOW tokens. Aggregate these `fee_amount` values by day, filtering out null fee amounts. Calculate additional statistics including average, median, transaction count, and unique payer count. Convert the aggregated FLOW token amounts to USD using end-of-day FLOW token price feeds from CoinGecko through manual price multiplication.
- **Key fields**: `fee_amount` (transaction fee in native FLOW), `payer` (transaction fee payer), `block_timestamp` (transaction timing)

### Component C: Transaction count aggregation
- **Purpose**: Count total daily transactions across both Flow EVM and Flow environments
- **Logic**: Extract transaction records from both Flow EVM and Flow sources. For each source, count distinct transaction hashes grouped by daily timestamp boundaries. Combine the counts from both environments using union operation to get total network transaction volume. Apply incremental processing logic to handle data updates efficiently.
- **Key fields**: `transaction_hash` (unique transaction identifier), `block_timestamp` (transaction timing), `chain_id` (environment identifier)

### Final aggregation
- **Combining components**: Join the daily fee totals with daily transaction counts using timestamp as the join key. The fee totals represent the combined USD value of fees from both Flow EVM gas fees and Flow transaction fees.
- **Currency conversion**: Flow EVM fees are converted to USD using the standard macro that handles token metadata and pricing automatically. Flow fees are converted manually by multiplying native FLOW amounts by end-of-day FLOW token prices from CoinGecko.
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation to day granularity, ensuring consistent temporal alignment between fee and transaction count data.
- **Final calculation**: Calculate the average transaction fee by performing safe division of total daily fees (in USD) by total daily transaction count. Use safe division function to handle edge cases where transaction count might be zero, preventing division errors.

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

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Average transaction fee

Average transaction fee

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