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

Polygon is a smart contract platform for decentralized applications & interoperability platform for blockchains. Polygon was founded by Jaynti Kanani, Sandeep Nailwal & Anurag Arjun and launched in 2017.

MATIC holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Polygon’s investors include Coinbase Ventures, ZBS Capital, MiH Ventures, etc.

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# Polygon Median transaction fee Methodology

## 1. Overview

This metric calculates the daily median transaction fee on the Polygon network, expressed in USD. It answers the question "What is the typical transaction cost that users pay on Polygon?" by taking the middle value (50th percentile) of all transaction fees paid each day. The calculation multiplies gas usage by effective gas price for each transaction, then finds the median across all daily transactions and converts to USD using WPOL token prices.

## 2. Data sources

- **Polygon blockchain transaction records**: Complete transaction data including gas usage metrics, effective gas prices, block timestamps, and transaction hashes
- **End-of-day token price feeds**: WPOL (Wrapped Polygon) token prices for USD conversion
- **Token metadata**: Decimal precision information for proper price and fee calculations

## 3. Step-by-step calculation

### Component A: Transaction processing
- **Purpose**: Extract and process all Polygon transactions with gas information
- **Logic**: Retrieves all transactions from Polygon blockchain records, filtering for distinct transactions with complete gas data. Applies decimal correction to `effective_gas_price` by dividing by 10^18 to convert from wei to WPOL units. Preserves key transaction identifiers including `block_timestamp`, `transaction_hash`, `gas_used`, and corrected `effective_gas_price`
- **Key fields**: `gas_used` (gas consumed by transaction), `effective_gas_price` (actual gas price paid in WPOL), `block_timestamp` (transaction timing), `token_address` (set to WPOL contract address)

### Component B: Fee calculation and median aggregation
- **Purpose**: Calculate individual transaction fees and determine daily median values
- **Logic**: For each transaction, multiplies `gas_used` by `effective_gas_price` to get the total fee amount paid in WPOL. Groups all transactions by day using timestamp truncation. Calculates the median fee using approximate quantiles function with 100 buckets, taking the 50th percentile (middle value) as the median transaction fee for each day
- **Key fields**: `fee_amount` (calculated as gas_used × effective_gas_price), `timestamp` (daily truncated), `transaction_fee_median` (50th percentile of daily fees)

### Component C: USD conversion and standardization
- **Purpose**: Convert WPOL-denominated fees to USD and apply standard metric formatting
- **Logic**: Uses end-of-day WPOL price feeds to convert the median transaction fee from WPOL to USD. Applies the convert_to_usd_and_correct_decimals macro with USD conversion enabled but decimal correction disabled (since gas prices were already corrected). Applies final metric standardization including zero-filling for days with no data and chain availability filtering
- **Key fields**: `transaction_fee_median` (converted to USD), `chain_id` (set to 'polygon'), `timestamp_grain` (set to 'day')

### Final aggregation
- **Combining components**: The three components flow sequentially - transaction processing feeds into fee calculation, which feeds into USD conversion
- **Currency conversion**: WPOL fees are converted to USD using end-of-day price feeds, with the conversion applied after median calculation to avoid price volatility affecting the statistical measure
- **Time aggregation**: Daily boundaries are established using timestamp truncation, with each day containing one median fee value
- **Final calculation**: The final metric represents the USD value of the median transaction fee paid on Polygon each day, providing a robust measure of typical user transaction costs that is less sensitive to outliers than average fees

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

PolygonPOL

Median transaction fee

Median transaction fee

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