# X Layer Median transaction fee Methodology

## 1. Overview

Median transaction fee is calculated as the median fee paid across all transactions on X Layer. The typical cost incurred by a user executing a transaction on the network is represented by this metric, which remains unskewed by outlier transactions with exceptionally high or low fees. Through the analysis of the median transaction fee, the economic efficiency and user affordability of X Layer are evaluated over time. Fees are collected in the native gas asset, OKB, and converted to USD to enable standardized comparison.

## 2. Data sources

- **Blockchain events**: Transaction execution details, including gas used, gas price, L1 gas used, L1 gas price, and L1 fee scalar, from transactions on X Layer
- **External data**: End-of-day price feeds for the native gas asset (OKB)

## 3. Step-by-step calculation

### Component A: Transaction fee calculation

- **Purpose**: Calculate the total fee paid for each individual transaction on X Layer
- **Logic**: For each transaction, the execution fee is calculated by multiplying the gas used by the gas price. The Layer 1 (L1) fee component is calculated by multiplying the L1 gas used, the L1 gas price, and the L1 fee scalar. These two components are summed to determine the total transaction fee. The resulting fee amounts are normalized by the decimal precision of the native gas asset (OKB).
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: Median fee determination

- **Purpose**: Calculate the daily median transaction fee
- **Logic**: Transactions are grouped by day using UTC boundaries. For each day, the median transaction fee is determined by calculating the 50th percentile of all transaction fee amounts processed on that day.
- **Key fields**: `block_timestamp`, `fee_amount`

### Component C: USD conversion and finalization

- **Purpose**: Convert the median transaction fee to USD and finalize the metric
- **Logic**: The daily median transaction fee, denominated in OKB, is multiplied by the end-of-day price of OKB to convert the value to USD. Missing days are zero-filled to ensure a continuous daily time series.
- **Key fields**: `timestamp`, `transaction_fee_median`, `price_usd`

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

Median transaction fee