# Pendulum Substrate Fees Methodology

## 1. Overview

Fees are measured as the total value paid by users to execute transactions on Pendulum Substrate. Included in this metric are both the base transaction fees and optional tips provided to prioritize transactions within a block. Economic value is represented by the total cost of blockspace utilized by users, which is ultimately used to compensate network maintainers.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from the blockchain on Pendulum Substrate
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: To identify and capture individual fee components from on-chain activity.
- **Logic**: `TransactionFeePaid` events are parsed from the blockchain event records. The base transaction amount and the optional transaction tip are extracted from the event data fields.
- **Key fields**: `amount`, `tip`

### Component B: Normalization and total fee calculation

- **Purpose**: To consolidate fee components into a standardized format for the native asset.
- **Logic**: The extracted base fee amount and the tip are summed for each transaction. These total amounts are then normalized by decimal precision to account for the native asset's denomination.
- **Key fields**: `amount`, `tip`

### Component C: USD conversion and aggregation

- **Purpose**: To provide a standardized valuation of fees in USD across different time periods.
- **Logic**: Normalized fee totals are multiplied by end-of-day price feeds for the native asset. The resulting values are aggregated into daily totals using UTC day boundaries.
- **Key fields**: `fees`, `price_usd`

*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.

Pendulum is a decentralized blockchain for cross-border payments and traditional finance infrastructure powered by Polkadot Relay chain.

PEN holders own and govern the protocol. Pendulum is a subsidiary of SatoshiPay. SatoshiPay's investors include Blue Star Capital, KR1 plc, Stellar Development Foundation, etc.

Pendulum Substrate

Archived

Fees

Fees

Chain breakdown