# Katana Chain Average transaction fee Methodology

## 1. Overview

Average transaction fee is calculated as the average fee paid by users per transaction on Katana Chain. The typical cost of interacting with the network is represented by this metric, which is utilized to evaluate the economic efficiency of the blockchain. Transaction fees are composed of Layer 2 execution fees, Layer 1 settlement fees, and operator fees. The final metric is derived by dividing the total daily gas fees by the daily transaction count, with values converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: Transaction execution data including gas usage, gas prices, Layer 1 settlement parameters, and operator fee constants from Katana Chain, covering Katana Chain
- **External data**: End-of-day price feeds for the native gas asset (ETH)

## 3. Step-by-step calculation

### Component A: Katana Chain gas fee calculation

- **Purpose**: Calculate the total gas fees paid for transactions, including Layer 2 execution, Layer 1 settlement, and Isthmus operator fees
- **Logic**: For each transaction, the Layer 2 gas fee is calculated by multiplying the gas used by the gas price, with the result normalized by decimal precision. The Layer 1 gas fee is determined by normalizing the Layer 1 fee, or if unavailable, by multiplying Layer 1 gas used, Layer 1 gas price, and the Layer 1 fee scalar, with the result normalized by decimal precision. The Isthmus operator fee is calculated by adding the operator fee constant to the product of gas used and the operator fee scalar divided by one million, with the sum normalized by decimal precision. These three components (Layer 2 gas fee, Layer 1 gas fee, and operator fee) are summed to determine the total transaction fee in native gas-asset units.
- **Key fields**: `gas_used`, `gas_price`, `l1_fee`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`, `operator_fee_constant`, `operator_fee_scalar`

### Component B: Katana Chain transaction count aggregation

- **Purpose**: Count the total number of successful transactions executed on the network
- **Logic**: Transactions are aggregated on a daily level by counting the distinct transaction hashes.
- **Key fields**: `transaction_hash`, `block_timestamp`

### Component C: USD conversion and average calculation

- **Purpose**: Convert fees to USD and calculate the average fee per transaction
- **Logic**: Daily gas fees for Katana Chain are converted to USD using end-of-day price feeds for the native gas asset. Other fee types, such as Katana Perps trading fees, Katana Vault Bridge yield, Katana AUSD Yield, and vKAT early-exit fees, are excluded from the numerator. The average transaction fee is calculated by dividing the total daily USD gas fees by the daily transaction count. Daily boundaries are defined using UTC timestamps.
- **Key fields**: `fees`, `transaction_count`

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

Average transaction fee

Blockchains (L2)

The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

Katana Chain

Average transaction fee

Average transaction fee

Chain breakdown