# Polkadot BridgeHub Fees Methodology

## 1. Overview

Fees measures the total value paid by users to perform transactions on Polkadot BridgeHub. This metric includes both the base transaction fees and discretionary tips provided by users to prioritize their transactions. These fees represent the economic value generated by the specialized bridging infrastructure within the Polkadot ecosystem.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Polkadot BridgeHub
- **External data**: End-of-day price feeds for the native DOT asset

## 3. Step-by-step calculation

### Component A: Polkadot BridgeHub fee extraction

- **Purpose**: Identify and collect all transaction-related payments from the bridging parachain.
- **Logic**: `TransactionFeePaid` events are identified from the blockchain data. The base fee amount and the user-provided tip amount are extracted from the event data for each successful transaction.
- **Key fields**: `amount` (base fee), `tip` (priority payment)

### Component B: Normalization and aggregation

- **Purpose**: Standardize the extracted fee values for reporting and analysis.
- **Logic**: Fee amounts and tips are normalized by the decimal precision of the native DOT asset. The total fee for each transaction is determined by summing the normalized base fee and the tip.
- **Key fields**: `block_timestamp` (timing), `amount` (normalized fee quantities)

### Component C: USD conversion

- **Purpose**: Provide a standardized valuation in USD for cross-asset comparison.
- **Logic**: The combined fee amounts are aggregated by day. These daily totals are multiplied by the end-of-day USD price of the native DOT asset. Daily granularity is maintained with UTC day boundaries.
- **Key fields**: `price_usd` (asset valuation)

*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 BridgeHub

Fees

Fees

Chain breakdown