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

Hedera is a decentralized enterprise-grade public network that uses proof-of-stake hashgraph consensus to offer low & fixed fees, 10k TPS, and instant transaction finality. Hedera was founded by Leemon Baird, Mance Harmon, etc. and launched in 2019.

HBAR holders own and govern the protocol. They currently take a cut of the total transaction and query fees paid by users (revenue). Hedera’s investors include BlockTower Capital, Continue Capital, Unanimous Capital, etc.

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Hedera

# Hedera Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU measures the average daily revenue generated per active user on the Hedera network. This metric is calculated by dividing daily protocol revenue by the number of daily active users. The calculation helps assess the revenue efficiency and user monetization of the Hedera blockchain. The metric uses transaction fees as the primary revenue source and identifies active users through HBAR transfer activity.

## 2. Data sources

The calculation relies on several core Hedera blockchain data sources:

- **Hedera transaction records**: Complete transaction data including `fee_charged` values in tinybars, transaction hashes, timestamps, and node information
- **Hedera HBAR transfer events**: Native HBAR transfer records showing account addresses, transfer amounts, and associated transaction details
- **End-of-day HBAR price feeds**: USD pricing data for converting native HBAR amounts to dollar values
- **Blockchain metadata**: Block timestamps, block numbers, and transaction identifiers for temporal aggregation

## 3. Step-by-step calculation

### Component A: Total fees calculation
- **Purpose**: Calculate gross transaction fees collected by the Hedera network
- **Logic**: Extract `fee_charged` values from Hedera transaction records where fees are not null. The `fee_charged` field contains fee amounts in tinybars (Hedera's smallest unit, where 1 HBAR = 100,000,000 tinybars). Aggregate these fees daily by summing all transaction fees per day, then convert from tinybars to native HBAR by dividing by 1e8
- **Key fields**: `fee_charged` (transaction fees in tinybars), `block_timestamp` (for daily aggregation), `transaction_hash` (transaction identifier)

### Component B: Supply-side fees calculation  
- **Purpose**: Identify fees paid to network validators/nodes that should be excluded from protocol revenue
- **Logic**: Join HBAR transfer data with transaction data to find transfers where the receiving account matches the transaction `node` field, the transfer amount is positive (incoming to node), and the transfer amount is less than the total transaction fee. This identifies validator reward payments. Aggregate these daily by summing all node transfers per day, then convert from tinybars to HBAR
- **Key fields**: `node` (validator node identifier), `transfer_amount` (HBAR transferred to nodes), `account_address` (recipient address)

### Component C: Net revenue calculation
- **Purpose**: Calculate protocol revenue after deducting validator payments
- **Logic**: Take total daily fees and subtract supply-side fees to get net revenue that flows to the Hedera treasury/protocol. Convert both fee components to USD using end-of-day HBAR prices before performing the subtraction
- **Key fields**: `fees` (total fees in USD), `fees_supply_side` (validator fees in USD)

### Component D: Daily active user identification
- **Purpose**: Count unique users who performed transactions each day
- **Logic**: Extract HBAR transfer events where `transfer_amount` is negative, indicating outgoing transfers (transaction senders). Use negative transfers to identify the active user (sender) rather than passive recipients. Group by day and user address, then count distinct addresses using HyperLogLog aggregation for efficient deduplication across large datasets
- **Key fields**: `account_address` (user wallet address), `transfer_amount` (negative values indicate senders), `block_timestamp` (for daily grouping)

### Final aggregation
- **Combining components**: The revenue calculation produces daily USD revenue figures, while the user calculation produces daily active user counts
- **Currency conversion**: All HBAR amounts are converted to USD using end-of-day price feeds before final calculations
- **Time aggregation**: Both revenue and user metrics use daily boundaries based on `block_timestamp` truncated to day level
- **Final calculation**: ARPU is calculated by dividing daily revenue (in USD) by daily active user count using the `calculate_arpu` macro, with zero-filling applied for days with missing data to maintain continuous time series

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

HederaHBAR

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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