# Near Protocol Median transaction fee Methodology

## 1. Overview

Median transaction fee measures the median fee paid across all transactions on Near Protocol. This metric identifies the 50th percentile of transaction costs within a given day, representing the amount paid by a typical user. By focusing on the median rather than the mean, the impact of extreme outliers—such as highly complex smart contract interactions or failed transactions with minimal costs—is minimized, providing a more accurate reflection of standard network usage costs. Values are converted from native units to USD using end-of-day asset prices.

## 2. Data sources

- **Blockchain events**: Transaction and receipt records from Near Protocol
- **External data**: End-of-day price feeds for the NEAR asset

## 3. Step-by-step calculation

### Component A: Transaction and receipt fee extraction

- **Purpose**: Capture the raw gas consumption data for every transaction and its associated execution.
- **Logic**: Gas consumption data is extracted from transaction and receipt records. For transactions, the gas burnt during the initial conversion process is captured. For receipts, the gas burnt during the actual execution on the network is identified. All values are normalized by decimal precision to convert raw chain data into standard units.
- **Key fields**: `gas_burnt`, `transaction_hash`, and `receipt_id`

### Component B: Median fee calculation

- **Purpose**: Determine the total fee per transaction and identify the daily median.
- **Logic**: Transactions are joined with their corresponding receipts using unique identifiers. The total fee for a transaction is calculated as the sum of the gas burnt during its conversion and the gas burnt during its receipt execution. Using an approximate quantile function, the 50th percentile (median) of these total gas values is calculated for all transactions occurring within a UTC day.
- **Key fields**: `total_gas_burnt` (sum of transaction and receipt gas) and `block_timestamp`

### Component C: USD conversion and normalization

- **Purpose**: Transform the median fee into a standardized USD value.
- **Logic**: The daily median fee value is multiplied by the end-of-day price feed for the NEAR asset. The resulting values are aggregated at a daily granularity with UTC day boundaries. Any days with missing data are filled with zeros to ensure a continuous time series.
- **Key fields**: `transaction_fee_median`, `price`, and `timestamp`

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

Median 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.