# Robinhood Chain Median transaction fee Methodology

## 1. Overview

Median transaction fee is measured as the median fee paid across all transactions on Robinhood Chain. The typical cost incurred by a user is represented by this metric, which is kept unskewed by outlier values. Transaction fees are collected in the native gas asset, Wrapped Ether (WETH), and are subsequently converted to USD. This metric is utilized so that the cost-efficiency and user affordability of Robinhood Chain are evaluated over time.

## 2. Data sources

- **Blockchain events**: Transaction data containing gas usage and effective gas prices from the Robinhood Chain ledger, covering Robinhood Chain
- **External data**: End-of-day price feeds for the native gas asset (WETH)

## 3. Step-by-step calculation

### Component A: Transaction fee extraction

- **Purpose**: Extract gas parameters and calculate the transaction fee for each transaction
- **Logic**: Gas used and effective gas price are extracted from each transaction on Robinhood Chain. The transaction fee is calculated by multiplying the gas used by the effective gas price. The resulting fee is normalized by the decimal precision of the native asset (WETH) so that the value is converted from wei to ether.
- **Key fields**: `gas_used` (gas consumed by the transaction), `gas_price` (effective gas price per unit of gas)

### Component B: Median fee calculation

- **Purpose**: Determine the median transaction fee on a daily basis
- **Logic**: Transactions are grouped by day based on the block timestamp. The median fee is calculated by taking the 50th percentile (median) of all transaction fees within each daily interval.
- **Key fields**: `block_timestamp` (timing of the transaction), `fee_amount` (calculated transaction fee)

### Component C: USD conversion and aggregation

- **Purpose**: Convert the median transaction fee to USD and finalize the metric
- **Logic**: The daily median transaction fee is multiplied by the end-of-day price of WETH so that the USD-denominated median transaction fee is obtained. Missing days are filled with zeros so that a continuous daily time series is ensured.
- **Key fields**: `timestamp` (daily interval), `transaction_fee_median` (median fee in native asset), `price_usd` (end-of-day asset price)

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

Median transaction fee