# Polkadot People Fees Methodology

## 1. Overview

Fees measures the total value paid by users to perform identity-related operations and transactions on Polkadot People. This includes base transaction fees and voluntary tips paid to the network. These fees represent the economic value generated by the Polkadot People system parachain, which provides decentralized identity and social primitives for the Polkadot ecosystem.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Polkadot People, covering the Polkadot People chain
- **External data**: End-of-day price feeds for the DOT asset

## 3. Step-by-step calculation

### Component A: Polkadot People transaction fee extraction

- **Purpose**: Captures the raw value of transaction fees and tips paid by users on the parachain.
- **Logic**: `TransactionFeePaid` events are parsed from Polkadot People. The fee amount and the tip amount are extracted from the event data. These values are normalized by decimal precision to reflect the true quantity of the DOT asset.
- **Key fields**: `amount` (base transaction fee), `tip` (additional voluntary payment)

### Component B: USD conversion and aggregation

- **Purpose**: Converts native asset values into USD and aggregates data to a daily frequency.
- **Logic**: The sum of the extracted base fees and tips is calculated for each transaction. These values are aggregated by day. The daily totals are multiplied by the end-of-day USD price of the DOT asset. Values are mapped to the Polkadot People product and processed 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 People

Fees

Fees

Chain breakdown