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Photon

# Photon Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) for Photon measures the average daily fee revenue generated per active user. This metric answers the business question: "How much fee revenue does each active user generate on average per day?" The calculation divides total daily fees collected by the protocol by the number of unique daily active users, providing insight into user monetization efficiency and revenue per user trends.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Solana native transfers**: SOL transfer events from Solana blockchain specifically targeting fee collection addresses
- **Transaction data**: Solana transaction records including signer addresses and block timestamps
- **End-of-day price feeds**: Daily SOL to USD price data for currency conversion
- **Token metadata**: SOL token information and standardized token addresses

## 3. Step-by-step calculation

### Component A: Fee collection
- **Purpose**: Captures all fee payments made to Photon protocol
- **Logic**: Extracts Solana native SOL transfers directed to the specific fee collection address `AVUCZyuT35YSuj4RH7fwiyPu82Djn2Hfg7y2ND2XcnZH`. Each transfer represents a fee payment from a user to the protocol. The system filters native transfers by the destination address to isolate fee-generating transactions from general SOL transfers.
- **Key fields**: `block_timestamp` for daily aggregation, `transaction_signer` for user identification, `amount` for fee values, and `to_address` for fee collection address filtering

### Component B: Daily fee aggregation
- **Purpose**: Converts raw fee transactions into daily USD totals
- **Logic**: Groups fee transactions by day using timestamp truncation. Converts amounts from lamports to SOL by dividing by 1e9. Applies end-of-day SOL to USD price conversion to standardize fee values in USD. Sums all converted fee amounts for each day to get total daily fee revenue.
- **Key fields**: `timestamp` truncated to day level, `chain_id` set to Solana, `product_id` set to photon, `token_address` standardized to SOL token address, and `fees` containing USD-converted daily totals

### Component C: Daily active user identification
- **Purpose**: Identifies unique users who generated fees each day
- **Logic**: Extracts unique transaction signers from the same fee transactions used in fee calculation. Each signer represents a user who paid fees to the protocol on that day. Users are classified as 'Trader' type. Applies daily timestamp truncation to group users by day, ensuring user counts align with fee aggregation periods.
- **Key fields**: `signer` as `user_dau` identifier, `user_type` set to Trader, `timestamp` truncated to day level, and `chain` for blockchain identification

### Component D: User count aggregation
- **Purpose**: Aggregates daily active users across multiple dimensions using HyperLogLog
- **Logic**: Uses HyperLogLog functions to count distinct users while supporting aggregation across different dimensions (project level, chain level, user type level, product level). Creates separate breakdowns for each dimension and combines them. Applies HLL merge operations to handle overlapping user sets and extract final distinct counts.
- **Key fields**: `hll` for HyperLogLog sketch data, `user_dau` for final distinct user counts, `dimensions` for aggregation level identification, and dimension-specific fields like `chain_id`, `product_id`, `user_type`

### Final aggregation
- **Combining components**: The calculation divides daily fee totals (Component B) by daily active user counts (Component D) using the calculate_arpu macro. Both components are aligned by date and project to ensure proper matching.
- **Currency conversion**: All fees are converted to USD using end-of-day SOL price feeds before the division calculation
- **Time aggregation**: Both fees and user counts use daily boundaries with timestamp truncation to day level
- **Final calculation**: AFPU = Total Daily Fees (USD) ÷ Daily Active Users, with the result representing average fee revenue per user per day. Missing days are filled with zeros to maintain consistent time series data.

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

Photon

Average fees per user (AFPU)

Average fees per user (AFPU)

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