# Near Protocol Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average cost paid by users for each transaction executed on Near Protocol. This metric incorporates both the base network gas fees and additional fees generated through Near Intents. It provides a representative view of the typical cost of network usage, denominated in USD to ensure comparability across different time periods and market conditions.

## 2. Data sources

- **Blockchain events**: Near Protocol transaction data, block headers, and `token_diff` events from `intents.near` contracts, covering Near
- **External data**: End-of-day price feeds for the native asset (NEAR) and various assets utilized within Near Intents

## 3. Step-by-step calculation

### Component A: Network gas fee extraction

- **Purpose**: Captures the base cost of executing transactions and smart contract interactions on Near Protocol.
- **Logic**: Gas usage is extracted from block chunk headers. The total gas consumed is multiplied by the gas price and normalized by a factor of 10^24 to account for the native decimal precision of the Near network. These native values are subsequently converted to USD using daily price feeds for the NEAR asset.
- **Key fields**: `chunk_gas_used`, `gas_price`, and `block_timestamp`.

### Component B: Near Intents fee collection

- **Purpose**: Accounts for specialized fees generated through the Near Intents product.
- **Logic**: Logs associated with the `intents.near` account are filtered for `token_diff` events. Fee amounts and asset identifiers are parsed from the event data. These amounts are normalized according to asset-specific decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `fees_collected` array, `fee_token`, `fee_amount`, and `executor_account_id`.

### Component C: Transaction volume aggregation

- **Purpose**: Determines the total number of unique successful transactions processed by the network.
- **Logic**: Distinct transaction hashes are identified and aggregated from network transaction records. This provides the denominator for the final average calculation and is summarized on a daily basis.
- **Key fields**: `transaction_hash`.

### Component D: Average fee calculation

- **Purpose**: Derives the final average cost per transaction.
- **Logic**: Total fees, representing the sum of network gas fees and Near Intents fees, are aggregated by day. This total is divided by the daily count of unique transactions. The final output is generated with daily granularity using UTC day boundaries, with zero-filling applied to ensure data continuity.
- **Key fields**: `fees`, `transaction_count`.

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

Average transaction fee

Blockchains (L1)

Validators process transactions and receive validator rewards (supply-side fees).

NEAR Protocol is a smart contract platform for decentralized applications (a blockchain). NEAR Protocol was founded by Alexander Skidanov & Ilya Polosukhin and launched in 2017.

NEAR holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). NEAR Protocol's investors include a16z, Pantera Capital, Libertus, etc.