# Kilt Chain Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute transactions and utilize decentralized identity services on Kilt Chain. These payments include both the base transaction costs and voluntary tips provided to block producers for transaction prioritization. This metric represents the total economic value generated through the usage of the Kilt Chain sovereign blockchain infrastructure.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Kilt Chain
- **External data**: End-of-day price feeds for the native KILT asset

## 3. Step-by-step calculation

### Component A: Fee and tip extraction

- **Purpose**: To capture the raw value of all transaction fees and tips paid by users.
- **Logic**: Successful `TransactionFeePaid` events are parsed from the Kilt Chain event records. The transaction amount and the associated tip are extracted from the event data fields. These two values are summed to calculate the total fee paid per extrinsic.
- **Key fields**: `amount` (extracted from event data), `tip` (extracted from event data), and `extrinsic_hash` (transaction identification).

### Component B: Asset normalization and USD conversion

- **Purpose**: To standardize fee values into a common currency for reporting and analysis.
- **Logic**: Raw fee amounts are normalized by decimal precision. These normalized values are then multiplied by end-of-day price feeds for the KILT asset to determine the USD value of each transaction fee.

### Component C: Daily aggregation

- **Purpose**: To provide a time-series view of economic activity on the network.
- **Logic**: Individual transaction fees are aggregated by day using UTC boundaries. The totals are summarized to provide daily granularity for Kilt Chain, ensuring that all successful fee-paying events are represented in the final metric.

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

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

Fees

Blockchains (L1)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Kilt Chain

Archived

Fees

Fees

Chain breakdown