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 Fees Methodology

## 1. Overview

The Hedera fees metric measures the total USD value of transaction fees paid to the Hedera network on a daily basis. This metric captures the fees charged by Hedera validators for processing all types of transactions on the network, providing insight into network usage and revenue generation. The calculation aggregates individual transaction fees from their native tinybars denomination to HBAR, then converts to USD using end-of-day price feeds.

## 2. Data sources

- **Hedera transaction records**: Raw blockchain transaction data from the Hedera network containing individual transaction details including fees charged
- **End-of-day price feeds**: HBAR/USD exchange rate data used for currency conversion to calculate USD-denominated fee values

## 3. Step-by-step calculation

### Component A: Transaction fee extraction
- **Purpose**: Extract individual transaction fees from raw Hedera blockchain data
- **Logic**: Retrieve all Hedera network transactions that contain fee information. Each transaction record includes a `fee_charged` field representing the fee paid in tinybars (the smallest unit of HBAR). Filter out any transactions where the fee charged is null to ensure only valid fee data is processed. Extract key transaction identifiers including block timestamp, transaction hash, and transaction ID for tracking purposes.
- **Key fields**: `fee_charged` (transaction fee in tinybars), `block_timestamp` (transaction timestamp), `transaction_hash` (unique transaction identifier)

### Component B: Daily fee aggregation
- **Purpose**: Calculate total daily fees in native HBAR denomination
- **Logic**: Group all transactions by day using timestamp truncation to daily boundaries. Sum all individual `fee_charged` amounts to get total daily fees in tinybars. Convert the aggregated tinybars amounts to HBAR by dividing by 100,000,000 (1e8), as HBAR has 8 decimal places and tinybars represent the smallest unit. This produces daily totals of fees paid in native HBAR terms.
- **Key fields**: `timestamp` (daily boundary), `total_fees` (aggregated tinybars), `fees_native` (converted to HBAR)

### Component C: USD conversion
- **Purpose**: Convert native HBAR fees to USD values using market prices
- **Logic**: Take the daily HBAR fee amounts and apply USD conversion using end-of-day HBAR price feeds. The conversion process matches each day's fee amount with the corresponding day's HBAR/USD exchange rate to produce USD-denominated fee values. This ensures consistent pricing methodology across all days and enables comparison with other blockchain networks.
- **Key fields**: `fees` (USD-converted fee amounts), `token_address` (set to 'native' for HBAR), `token_symbol` (set to 'HBAR')

### Final aggregation
- **Combining components**: The daily USD fee amounts flow directly from the conversion step without additional aggregation, as fees are already grouped by day
- **Currency conversion**: HBAR fees are converted to USD using end-of-day price feeds, ensuring consistent daily pricing across the entire time series
- **Time aggregation**: All fees are aggregated to daily boundaries using timestamp truncation, providing daily total fee amounts
- **Final calculation**: The final metric represents the total USD value of all transaction fees paid to the Hedera network on each day, calculated by summing individual transaction fees in tinybars, converting to HBAR, then applying USD exchange rates

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

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

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