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

Ronin is a smart contract platform for decentralized applications (a blockchain). Ronin was founded by Sky Mavis and launched in 2021.

RON holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Sky Mavis' investors include a16z, Binance, Animoca Brands, etc.

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Ronin

# Ronin Average fees per user (AFPU) Methodology

## 1. Overview

AFPU (Average Fees Per User) measures the average amount of transaction fees paid per daily active user on the Ronin blockchain. This metric answers the business question: "How much does each user contribute in fees on average per day?" The calculation divides total daily fees (in USD) by the number of distinct daily active users, providing insight into user-level fee contribution and network monetization efficiency.

## 2. Data sources

The AFPU calculation relies on two primary data sources:
- **Ronin blockchain transaction records**: Complete transaction data including sender addresses, gas usage amounts, effective gas prices, recipient addresses, block timestamps, and transaction hashes
- **End-of-day price feeds**: CoinGecko RON token price data used for converting native RON fees to USD values

## 3. Step-by-step calculation

### Component A: Transaction fee calculation
- **Purpose**: Calculate the total fees paid in USD for each day
- **Logic**: Extract all Ronin blockchain transactions and calculate individual transaction fees by multiplying `gas_used` by `effective_gas_price`. The effective gas price is already converted from wei to RON denomination by dividing by 10^18. Transaction fees are then aggregated by day using timestamp truncation to day boundaries. Daily fee totals in RON are converted to USD using end-of-day CoinGecko price feeds for the RON token with identifier 'ronin'. The conversion uses the `convert_to_usd_cg` macro to apply appropriate price matching and currency conversion logic.
- **Key fields**: `gas_used` (gas consumed by transaction), `effective_gas_price` (gas price in RON), `block_timestamp` (transaction timing), `gas_fee` (calculated fee amount)

### Component B: Daily active user counting  
- **Purpose**: Count the distinct number of users who initiated transactions each day
- **Logic**: Extract unique sender addresses from Ronin transactions grouped by day using timestamp truncation to day boundaries. Users are identified as transaction senders through the `from_address` field, classified with `user_type` as 'Transaction sender'. The calculation uses HyperLogLog (HLL) aggregation for efficient distinct counting across multiple dimensional breakdowns including overall project level, by chain, by user type, and by product. HLL counting uses `hll_count.init` to encode individual users and `hll_count.merge_partial` to aggregate across dimensions while maintaining distinct count accuracy.
- **Key fields**: `user_address` (derived from `from_address`), `block_timestamp` (transaction timing), `user_type` (classification as transaction sender)

### Final aggregation
- **Combining components**: The daily fee totals (in USD) and daily active user counts are combined using the `calculate_arpu` macro, which divides total fees by total users for each day to produce the average fees per user
- **Currency conversion**: All fees are converted to USD using end-of-day RON token prices from CoinGecko before the final division calculation
- **Time aggregation**: Both components use consistent daily boundary logic with timestamp truncation to day level, ensuring aligned time periods for division
- **Final calculation**: AFPU equals total daily fees in USD divided by total distinct daily active users, with gap-filling applied to ensure continuous time series using zeros for days with no activity

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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