# Polkadot AssetHub Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute transactions and operations on Polkadot AssetHub. These fees include the base transaction costs and optional tips provided to block authors to prioritize transaction inclusion. Fees are captured for both the native DOT asset and various supported assets, such as stablecoins and community-specific assets, providing a comprehensive view of the economic value generated by the parachain.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` and `AssetTxFeePaid` events from Polkadot AssetHub
- **External data**: End-of-day price feeds for native and supported assets

## 3. Step-by-step calculation

### Component A: Native transaction fee extraction

- **Purpose**: Captures fees paid in the native DOT asset on Polkadot AssetHub
- **Logic**: `TransactionFeePaid` events are parsed from the Polkadot AssetHub event logs. The fee `amount` and `tip` are extracted from the event data fields. These values are normalized by the decimal precision of the native DOT asset.
- **Key fields**: `amount` (base fee), `tip` (priority fee)

### Component B: Asset-based fee extraction

- **Purpose**: Captures transaction fees paid using non-native assets such as USDC or USDt
- **Logic**: `AssetTxFeePaid` events are parsed from the `assetTxPayment` pallet on Polkadot AssetHub. The specific asset used for payment is identified by mapping the token identifier in the event data to a list of supported fee assets. The fee `amount` and `tip` are extracted and normalized according to the decimal precision defined for each specific asset (e.g., 6 decimals for USDC/USDt).
- **Key fields**: `amount` (base fee), `tip` (priority fee), `token_id` (asset identification)

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes all captured fees into a common currency for reporting
- **Logic**: Normalized fee amounts and tips are multiplied by the corresponding end-of-day price feeds. For native fees, the price of DOT is applied. For asset-based fees, the price of the specific underlying asset is used. All converted values are summed to provide a total daily fee metric at a UTC day granularity.
- **Key fields**: `price_usd` (asset valuation), `block_timestamp` (timing)

*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 (L2)

Network participants process transactions and receive fees from users (supply-side fees).

Polkadot is a security & interoperability platform for blockchains and applications. Polkadot was founded by Gavin Wood and launched in 2020.

DOT holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Polkadot’s investors include Polychain, IOSG Ventures, Hashkey, etc.

Polkadot AssetHub

Fees

Fees

Chain breakdown