# pump.fun Fees Methodology

## 1. Overview

Fees for pump.fun are measured as the total fees collected by the pump.fun protocol on Solana, expressed in USD. The economic value generated from trading activity on the platform is represented by this metric. A hybrid approach is utilized for the calculation: for historical data before May 13, 2025, fees are calculated as 1% of trading volume, while for recent data, actual fee amounts are extracted directly from `TradeEvent` instructions.

## 2. Data sources

- **Blockchain events**: `TradeEvent` and Solana DEX trades from the pump.fun program, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Historical fees (before May 13, 2025)

- **Purpose**: Fees are calculated for the period before explicit fee data was logged by pump.fun.
- **Logic**: Trading volume is calculated by extracting trade data from Solana DEX trades for the pump.fun program (`6EF8rrecthR5Dkzon8Nwu78hRvfCKubJ14M5uBEwF6P`). For buy transactions, the `base_amount` is summed where the base asset is SOL (`So11111111111111111111111111111111111111112`). For sell transactions, the `quote_amount` is summed where the quote asset is SOL. Raw amounts are normalized by decimal precision. Trading volumes are aggregated daily and converted to USD using end-of-day SOL prices. Fees are calculated by applying a 1% fee rate to the trading volume using the formula: trading volume × 0.99 × 0.01.
- **Key fields**: `transaction_id`, `block_timestamp`, `base_mint_address`, `quote_mint_address`, `base_amount`, `quote_amount`, `instruction_type`

### Component B: Direct fees (from May 13, 2025 onwards)

- **Purpose**: Actual fee amounts are extracted from `TradeEvent` instructions for the period when explicit fee tracking was introduced.
- **Logic**: Fee data is extracted from `TradeEvent` instructions, capturing both regular fees (`fee`) and creator fees (`creator_fee`). The quote asset address is determined from the `quote_mint` field; if the field is null or matches the default public key, the SOL address is used. The regular fee and creator fee are summed to calculate total fees. Amounts are aggregated daily by timestamp and token address.
- **Key fields**: `block_timestamp`, `fee`, `creator_fee`, `quote_mint`

### Component C: USD conversion and aggregation

- **Purpose**: Fee components are combined, normalized, and converted to USD.
- **Logic**: Historical fees and direct fees are combined using a union operation, ensuring no overlap between the two time periods (before vs. From May 13, 2025). For direct fees, amounts are normalized by decimal precision and converted to USD using end-of-day price feeds for the respective quote assets. For historical fees, USD values are calculated directly from the USD-denominated trading volume. Daily aggregation is performed using timestamp truncation to the day level. Schema validation and gap-filling are applied using a zero-fill strategy for missing days.
- **Key fields**: `timestamp`, `fees`

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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