# Bifrost Substrate Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Bifrost Substrate to maintain its network operations and security. For this product, expenses specifically represent the economic value of native assets issued as block rewards to network participants. These costs are classified as token incentives and reflect the expenditure required to incentivize the security and stability of the parachain.

## 2. Data sources

- **Blockchain events**: `Rewarded` events from the `parachainStaking` pallet, covering Bifrost Substrate
- **External data**: End-of-day price feeds for the native Bifrost asset

## 3. Step-by-step calculation

### Component A: Block reward extraction

- **Purpose**: To capture the issuance of native assets distributed as incentives to network participants.
- **Logic**: `Rewarded` events are parsed from the `parachainStaking` pallet on the Bifrost Substrate chain. The reward quantity is extracted from the event data payload for each successful transaction. These events specifically represent the distribution of inflationary rewards to validators and delegators within the staking system.

### Component B: Asset normalization and USD conversion

- **Purpose**: To normalize asset quantities and convert the value into a standardized fiat currency for reporting.
- **Logic**: Reward amounts are normalized by decimal precision to adjust for the native asset's decimals. The normalized quantities are multiplied by end-of-day price feeds for the native asset. The resulting values are aggregated into daily totals based on UTC day boundaries.

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

Total project operating and incentive expenses.

Expenses

Blockchains (L2)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Bifrost is the Staking Yield Layer app-chain for stablecoins, RWAs, and DeFi, powered by the Polkadot Relay chain.

BNC holders own and govern the protocol. Bifrost’s investors include OKX Ventures, Long Hash Ventures, etc.

Bifrost Substrate

Archived

Expenses

Expenses

Chain breakdown