# Robinhood Chain Average transaction fee Methodology

## 1. Overview

Average transaction fee is calculated as the average fee paid by users per transaction on Robinhood Chain. The typical cost of using the network is reflected by this metric. Economic barriers to entry and cost efficiency of transacting on the network are evaluated using this metric. The final value is derived by dividing the total daily transaction fees by the daily transaction count.

## 2. Data sources

- **Blockchain events**: Transaction records including gas usage and gas price details, covering Robinhood Chain
- **External data**: End-of-day price feeds for the native gas asset (WETH)

## 3. Step-by-step calculation

### Component A: Robinhood Chain transaction fee extraction

- **Purpose**: The total gas fees paid for transactions on Robinhood Chain are calculated.
- **Logic**: Gas fees are calculated for each transaction by multiplying the gas used by the effective gas price. The gas used and effective gas price are extracted from transaction receipts. These transaction-level fees are aggregated daily and normalized by decimal precision.
- **Key fields**: `gas_used`, `gas_price`, `block_timestamp`

### Component B: Robinhood Chain fee USD conversion

- **Purpose**: Daily transaction fees are converted to USD.
- **Logic**: Daily aggregated gas fees, denominated in WETH, are multiplied by the end-of-day USD price of WETH. The total daily transaction fees in USD are yielded by this conversion.
- **Key fields**: `timestamp`, `fees`, `price_usd`

### Component C: Robinhood Chain transaction count aggregation

- **Purpose**: The total number of daily transactions is aggregated.
- **Logic**: Unique transaction hashes are counted and aggregated on a daily basis from transaction records.
- **Key fields**: `transaction_hash`, `block_timestamp`

### Component D: Robinhood Chain average fee calculation

- **Purpose**: The average cost paid per transaction is determined.
- **Logic**: Total daily transaction fees in USD are divided by the total daily transaction count. The average transaction fee for each day is produced by this division.
- **Key fields**: `fees`, `transaction_count`

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

Average transaction fee

Robinhood Chain

Average transaction fee

Average transaction fee

Chain breakdown