# Polkadot Coretime Fees Methodology

## 1. Overview

Fees measures the total value paid by users and parachains to utilize the Polkadot Coretime parachain. This metric captures both the standard transaction fees for on-chain interactions and the economic value generated from the sale of computational resources. This includes the acquisition of coretime through initial purchases and subsequent renewals, representing the total cost of securing blockspace within the Polkadot ecosystem.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events and `Purchased` and `Renewed` events from `broker` contracts on Polkadot Coretime
- **External data**: End-of-day price feeds for the native DOT asset

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Captures the individual transaction costs paid by users for activity on the Polkadot Coretime chain.
- **Logic**: `TransactionFeePaid` events are parsed from the Polkadot Coretime blockchain. The base fee amount and the tip amount are extracted from each event. These components are summed to determine the total transaction-level fee.
- **Key fields**: `amount` (base transaction fee) and `tip` (optional priority fee).

### Component B: Coretime sales and renewals

- **Purpose**: Captures the revenue generated from the primary sale and extension of coretime allocations to parachains.
- **Logic**: `Purchased` and `Renewed` events are parsed from `broker` contracts. `Purchased` events represent the initial acquisition of new coretime allocations, while `Renewed` events represent the extension of existing allocations. The amounts from both event types are extracted to represent the total value paid for computational resources.
- **Key fields**: `amount` (value of the coretime purchase or renewal).

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes the collected fees into a standard currency for reporting.
- **Logic**: All extracted amounts and tips are normalized by decimal precision. The resulting values are aggregated by day and multiplied by the end-of-day DOT price from the Polkadot Relay Chain. Daily totals are calculated using UTC day boundaries.

*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 Coretime

Fees

Fees

Chain breakdown