Tempo is a Layer 1 blockchain purpose-built for global payments, developed in partnership with leading fintechs and Fortune 500 companies and incubated by Stripe and Paradigm. It delivers high-throughput, low-cost global transactions with sub-second finality, predictable fees, and native stablecoin support.

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Blockchains (L1)

Tempo

# Tempo Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average fee paid by users for each transaction processed on the Tempo network. This metric reflects the typical cost of interacting with the blockchain and is used to assess network affordability and economic activity. Since Tempo utilizes a stablecoin-based fee model, fees are natively denominated in USD equivalents, providing a stable measure of transaction costs without the volatility associated with native gas assets.

## 2. Data sources

- **Blockchain events**: Transaction data including gas usage, gas prices, and call arrays from the Tempo blockchain
- **External data**: Asset metadata for fee-paying stablecoins

## 3. Step-by-step calculation

### Component A: Transaction data extraction

- **Purpose**: Identify and categorize successful transactions for fee analysis
- **Logic**: Successful transactions are filtered from the Tempo blockchain. Transactions are categorized into two types: standard transactions and Multi-Payment Partition (MPP) transactions. For standard transactions, gas usage and gas prices are extracted directly. For MPP transactions, the internal calls are unnested, and the total gas used for the transaction is divided evenly across all calls to ensure accurate attribution of network resources.
- **Key fields**: `receipt_gas_used`, `receipt_effective_gas_price`, `transaction_type`, and `calls` array

### Component B: Fee calculation and normalization

- **Purpose**: Calculate the USD value of fees paid per transaction
- **Logic**: Transaction fees are calculated by multiplying the gas used by the effective gas price. Because Tempo fees are denominated in attodollars (representing $10^{-18}$ USD), the resulting values are already in USD terms. These values are normalized by decimal precision to convert the attodollar amounts into standard USD units.
- **Key fields**: `gas_used`, `gas_price`, and `fee_token`

### Component C: Transaction volume aggregation

- **Purpose**: Determine the total number of transactions to be used as the denominator
- **Logic**: The total transaction volume is calculated by performing a distinct count of transaction hashes. This aggregation is performed on a daily basis, aligned with UTC day boundaries, to provide a consistent denominator for the average fee calculation.
- **Key fields**: `transaction_hash` and `block_timestamp`

### Component D: Average fee derivation

- **Purpose**: Calculate the final average fee metric
- **Logic**: The total fees collected (Component B) are divided by the total number of transactions (Component C) for each daily interval. This results in the average fee paid per transaction. The final values are aggregated and validated to ensure no data gaps exist in the historical record.
- **Key fields**: `fees` and `transaction_count`

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

Tempo

Average transaction fee

Average transaction fee

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