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

Terra is a smart contract platform for decentralized applications (a blockchain). Terra was founded by Daniel Shin and Do Kwon and launched in 2018. Terra Classic's stablecoin UST collapsed in 2022 due to a cryptocurrency equivalent of a bank run. Terra was forked shortly after, leading to the current Terra and its predecessor Terra Classic. This dashboard tracks the new Terra blockchain.

LUNA holders own and govern the protocol. They take a cut of the total transaction fees paid by users (revenue) that is then rewarded to contract owners (cost of revenue). Terra’s investors include Coinbase Ventures, Galaxy Digital, Pantera Capital, etc.

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Terra

# Terra Average transaction fee Methodology

## 1. Overview

The Terra average transaction fee metric measures the mean cost per transaction on the Terra blockchain, expressed in USD. This metric is calculated by dividing the total daily transaction fees by the total number of transactions per day. It provides insight into network congestion, usage patterns, and the economic cost of using the Terra blockchain. The calculation combines fee extraction from blockchain events with transaction counting, then applies currency conversion to provide USD-denominated results.

## 2. Data sources

The calculation relies on three primary data sources:

- **Terra blockchain event attributes**: Parsed event data from Terra blockchain containing transaction fee information embedded in event attributes where the event type is transaction-related
- **Terra blockchain transactions**: Complete transaction records from the Terra blockchain used for counting daily transaction volume
- **End-of-day price feeds**: CoinGecko price data for Terra native tokens (LUNA and FDB/USDC) used for USD conversion

## 3. Step-by-step calculation

### Component A: Transaction fee extraction and processing

- **Purpose**: Extract and process transaction fees from Terra blockchain events into USD-denominated daily totals
- **Logic**: The system identifies transaction fee events by filtering event attributes where the `event_type` equals 'tx' and `attribute_key` equals 'fee'. Each fee entry contains both amount and currency information in a single string. The system uses regex extraction to parse the numeric amount and currency unit separately. Currency units are then mapped to standardized identifiers: 'uluna' maps to 'terra-luna-2', while 'FDB' and null values map to 'usd-coin'. Raw amounts are normalized by dividing by 1e6 to account for Terra's decimal precision. The processed amounts are converted to USD using end-of-day price feeds from CoinGecko, then summed by day to produce total daily fees in USD.
- **Key fields**: `block_timestamp` for temporal grouping, `transaction_hash` for transaction identification, `attribute_value` containing the raw fee string, `amount` after decimal correction, `coingecko_id` for price lookup, and `fees` as the final USD amount

### Component B: Transaction count aggregation

- **Purpose**: Count the total number of unique transactions per day on Terra blockchain
- **Logic**: The system processes all Terra transaction records and counts distinct transaction hashes grouped by day. The timestamp is truncated to day level to ensure proper daily boundary alignment. The counting excludes duplicate transactions that might appear in the raw data by using distinct counting on transaction hashes.
- **Key fields**: `block_timestamp` truncated to day level for temporal grouping, `transaction_hash` for unique transaction identification, and `transaction_count` as the final daily count

### Final aggregation

- **Combining components**: Daily fee totals are joined with daily transaction counts using the timestamp as the join key, ensuring both metrics reference the same 24-hour periods
- **Currency conversion**: All fees are converted to USD using end-of-day CoinGecko price feeds, with Terra native token mappings applied before price lookup
- **Time aggregation**: Both fees and transaction counts are aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: The average transaction fee is calculated by dividing total daily fees (in USD) by total daily transaction count using safe division to handle cases where transaction count might be zero. The result represents the mean cost per transaction in USD for each day on the Terra blockchain.

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

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