# Bifrost Substrate Token incentives Methodology

## 1. Overview

Token incentives measures the value of native assets distributed by Bifrost Substrate to reward participants, including validators and stakers. These distributions consist of block rewards issued through the protocol's staking mechanism to ensure network security and incentivize long-term participation. The metric is treated as analogous to stock-based compensation in traditional financial analysis.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Parachain staking reward extraction

- **Purpose**: Captures the issuance of native assets to network stakeholders.
- **Logic**: `Rewarded` events are parsed from `parachainStaking` pallets. The reward amount is extracted from the event data for every successful distribution. These values are aggregated by block and timestamp to determine the total daily issuance of the native asset.
- **Key fields**: `amount` (reward quantity)

### Component B: Normalization and USD conversion

- **Purpose**: Converts raw blockchain values into a standardized USD-denominated metric.
- **Logic**: Raw reward amounts are normalized by decimal precision. These normalized quantities are multiplied by end-of-day price feeds for the native asset. The resulting values are aggregated into daily totals using UTC day boundaries. Any gaps in the data are filled with zeros to ensure a continuous time series.

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

Value of native tokens distributed as incentives.

Token incentives

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

Token incentives

Token incentives

Chain breakdown