Node operators process transactions and receive token incentives. These independently owned high-spec node machines around the world are connected via Internet Computer Protocol (ICP), creating a self-sovereign network not reliant on any cloud services. Advanced cryptography allows any application or service to be run on the network in a decentralized manner via smart contracts.

The Internet Computer is a decentralized cloud blockchain, where apps can be built fully onchain, using AI, or by coding. Try caffeine.ai & icp.ninja.

ICP tokenholders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). ICP Holders can stake their ICP on the Network Nervous System (NNS), an advanced fully on-chain DAO that facilitates liquid democracy. Staking ICP allows users to submit proposals, vote on proposals, and earn rewards for their participation in governance. Internet Computer's investors include Polychain, Scalar Capital, Amino Capital, etc.

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Internet Computer

# Internet Computer Average transaction fee Methodology

## 1. Overview

The Internet Computer average transaction fee metric measures the average cost per transaction on the Internet Computer blockchain, expressed in USD. This metric is calculated by dividing the total daily transaction fees by the total daily transaction count. The calculation includes both traditional transaction fees and ICP tokens burned for cycles (computational resources), providing a comprehensive view of the cost structure for Internet Computer network usage.

## 2. Data sources

The calculation relies on several Internet Computer-specific data sources:

- **Internet Computer burn data**: Cumulative ICP tokens burned for cycles, tracked through the Internet Computer ecosystem's internal monitoring systems
- **Internet Computer transaction fee data**: Cumulative transaction fees collected in ICP tokens
- **Internet Computer network statistics**: Daily average transactions per second metrics from network monitoring
- **End-of-day price feeds**: CoinGecko price data for ICP token (internet-computer coingecko_id) to convert native token amounts to USD values

## 3. Step-by-step calculation

### Component A: Fee data extraction and processing
- **Purpose**: Aggregate all fee-related costs on Internet Computer including both burns and traditional fees
- **Logic**: Raw cumulative fee data is extracted from Internet Computer scrapers for two fee types: ICP burned for cycles and transaction fees. Since the source data provides cumulative totals, daily amounts are calculated by taking the difference between consecutive days using window functions with LAG. ICP amounts are normalized by dividing by 10^8 to account for ICP's decimal precision. Duplicate records are filtered by selecting the most recent `inserted_at` timestamp for each day.
- **Key fields**: `daily_timestamp` for date alignment, `amount` for ICP fee quantities, `fee_type` to distinguish burns from transaction fees, `token_symbol` as ICP, and `coingecko_id` for price lookup

### Component B: USD conversion
- **Purpose**: Convert ICP-denominated fees to USD for standardized reporting
- **Logic**: Daily ICP fee amounts are joined with CoinGecko end-of-day price feeds using the internet-computer coingecko_id. The conversion applies the daily closing price to each day's fee amount, producing USD-denominated values.
- **Key fields**: `fees` in USD after price conversion, `daily_timestamp` for date matching with price feeds

### Component C: Transaction count derivation  
- **Purpose**: Calculate total daily transaction count from network performance metrics
- **Logic**: Average transactions per second data is extracted from Internet Computer network statistics. Duplicate handling selects the latest `inserted_at` record for each day. Daily transaction count is calculated by multiplying the average transactions per second by 86,400 (seconds per day).
- **Key fields**: `amount` representing average transactions per second, `transaction_count` as the daily total after multiplication

### Final aggregation
- **Combining components**: Total daily fees in USD (combining both burns and transaction fees) are joined with daily transaction counts by timestamp
- **Currency conversion**: All fees are already converted to USD using end-of-day CoinGecko prices before the final calculation
- **Time aggregation**: Data is aggregated at daily boundaries using the `daily_timestamp` field
- **Final calculation**: Average transaction fee is calculated by dividing total daily fees (USD) by total daily transaction count, using safe division to handle cases where transaction count might be zero

*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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