Miners process transactions and receive fees from users (supply-side fees).

Litecoin is a distributed ledger for transfer and store of value (a blockchain). Litecoin was founded by Charlie Lee and launched in 2010.

LTC holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Litecoin’s investors include Block Ventures, etc.

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Blockchains (L1)

Litecoin

# Litecoin Fees Methodology

## 1. Overview

The Litecoin fees metric measures the total transaction fees paid on the Litecoin blockchain, expressed in USD. This metric represents the daily aggregate fees collected by miners for processing and validating transactions on the Litecoin network. The calculation involves aggregating block-level fee data from the Litecoin blockchain, converting from the smallest unit (litoshis) to standard LTC units, and then converting to USD using end-of-day price feeds.

## 2. Data sources

The calculation relies on the following data sources:

- **Litecoin blockchain blocks**: Block-level data from the Litecoin blockchain containing fee information for each mined block, including timestamps and total fee amounts paid within each block
- **End-of-day price feeds**: LTC/USD exchange rate data used for currency conversion from native LTC amounts to USD values
- **Token metadata**: Litecoin token information including symbol (`LTC`) and identification as a native blockchain token

## 3. Step-by-step calculation

### Component A: Daily fee aggregation
- **Purpose**: Aggregate all transaction fees collected across the Litecoin blockchain on a daily basis
- **Logic**: Raw block data is processed by truncating timestamps to day-level boundaries and summing the `total_fee` field across all blocks for each day. This captures all fees paid to miners within each 24-hour period on the Litecoin network.
- **Key fields**: The `total_fee` field contains the sum of all transaction fees within each block, measured in litoshis (the smallest unit of Litecoin)

### Component B: Unit conversion and standardization
- **Purpose**: Convert raw fee amounts from litoshis to standard LTC units and prepare for USD conversion
- **Logic**: Raw fees are converted from litoshis to LTC by dividing by 1e8 (100 million), since there are 100 million litoshis in 1 LTC. The data is also standardized with proper chain identifiers (`litecoin`), token symbols (`LTC`), and marked as `native` token address since LTC is the native currency of the Litecoin blockchain.
- **Key fields**: The converted `fees` field now represents daily fee totals in standard LTC units rather than litoshis

### Component C: USD conversion
- **Purpose**: Convert LTC fee amounts to USD using market exchange rates
- **Logic**: The standardized LTC amounts are converted to USD using end-of-day price feeds through a conversion macro. This provides USD-denominated fee values that can be compared across different time periods and blockchains.
- **Key fields**: The resulting USD fee amounts maintain the daily aggregation level while expressing values in a common currency unit

### Final aggregation
- **Combining components**: The calculation flows sequentially from daily aggregation through unit conversion to USD conversion, with each step building on the previous transformation
- **Currency conversion**: USD conversion uses end-of-day LTC/USD exchange rates to ensure consistent daily pricing across the time series
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day-level precision, ensuring all blocks within a calendar day are grouped together
- **Final calculation**: The final metric represents the total USD value of transaction fees paid on the Litecoin blockchain for each day, calculated as the sum of all block fees converted from litoshis to LTC and then to USD using daily 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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Fees

Fees

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