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 Median transaction fee Methodology

## 1. Overview

The median transaction fee metric measures the middle value of all transaction fees paid on the Hedera network on a given day, expressed in USD. This metric provides insight into the typical cost users pay for transactions, filtering out extreme values that could skew a simple average. The calculation processes all Hedera transactions, extracts their fees in native HBAR tokens, converts to USD, and computes the median using statistical approximation methods.

## 2. Data sources

- **Hedera blockchain transaction records**: Complete transaction data from the Hedera network including transaction metadata, timestamps, block numbers, transaction IDs, and fee amounts charged in tinybars (the smallest unit of HBAR)
- **End-of-day token price feeds**: HBAR to USD conversion rates used to convert native fee amounts to USD values

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extracts and standardizes transaction records from Hedera blockchain data
- **Logic**: Retrieves all transactions from Hedera blockchain records, preserving key metadata including block timestamps, transaction hashes, transaction IDs, block numbers, and fee amounts. Filters to include only transactions that have non-null `fee_charged` values to ensure valid fee data.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `transaction_id` for unique identification, `fee_charged` containing the fee amount in tinybars, `block_number` for block reference

### Component B: Fee processing and aggregation
- **Purpose**: Processes raw fee data and converts from tinybars to HBAR denomination
- **Logic**: Takes the extracted transaction data and processes fee amounts by converting from tinybars (the native smallest unit) to HBAR by dividing by 1e8, since HBAR has 8 decimal places. Truncates timestamps to daily boundaries for aggregation. Groups transactions by day and sums the total fees to get daily fee totals in native HBAR.
- **Key fields**: `timestamp` truncated to day level, `fee_charged` converted to `fees_native` in HBAR denomination, `total_fees` as daily aggregated amounts

### Component C: USD conversion
- **Purpose**: Converts native HBAR fee amounts to USD values
- **Logic**: Takes the daily fee data in HBAR and applies USD conversion using end-of-day price feeds. The conversion process maintains the fee amounts but adds USD-denominated values alongside the native amounts. No decimal correction is applied as HBAR amounts are already properly formatted.
- **Key fields**: `fees` field containing USD-converted fee amounts, maintaining the original `timestamp` and `chain_id` metadata

### Final aggregation
- **Combining components**: The USD-converted individual transaction fees are collected for median calculation
- **Currency conversion**: HBAR amounts are converted to USD using end-of-day price feeds applied during the intermediate processing step
- **Time aggregation**: Data is aggregated at daily boundaries, with timestamps truncated to day level
- **Final calculation**: The median transaction fee is calculated using BigQuery's `approx_quantiles` function with 100 quantiles, selecting the 50th percentile (offset 50) to get the median value. This provides an approximation of the true median that is efficient for large datasets. The result represents the median USD fee amount across all transactions for each day.

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

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Median transaction fee

Median transaction fee

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