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.

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Bifrost

# Bifrost Expenses Methodology

## 1. Overview

The Bifrost.io expenses metric measures the daily USD value of block rewards paid out by the Bifrost network to validators and stakers. This metric represents the network's operational expenses for securing the blockchain through its parachain staking mechanism. The calculation identifies reward events from the Bifrost blockchain, aggregates daily reward amounts, and converts them to USD values using market prices.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Bifrost blockchain events**: Parsed events from the Bifrost parachain containing staking reward information
- **Event data**: JSON-formatted event parameters from parachain staking transactions
- **End-of-day price feeds**: CoinGecko price data for the Bifrost native coin (BNC token) to enable USD conversion
- **Token metadata**: Decimal precision information for proper unit conversion from blockchain raw values

## 3. Step-by-step calculation

### Component A: Block reward extraction
- **Purpose**: Identifies and extracts block reward events from Bifrost blockchain data
- **Logic**: Filters all Bifrost blockchain events to isolate those from the `parachainStaking` pallet with the `Rewarded` method. These events represent validator and staker rewards paid by the network. The reward amount is extracted from the event's JSON data array, specifically from the second element which contains the reward value in raw blockchain units.
- **Key fields**: `timestamp` for daily aggregation, `event_pallet` and `event_method` for filtering, `event_data` array containing the reward `amount`

### Component B: Daily reward aggregation  
- **Purpose**: Aggregates individual reward events into daily totals with proper unit conversion
- **Logic**: Groups the filtered reward events by day using timestamp truncation. Sums all reward amounts within each day to get total daily rewards. Converts amounts from micro-BNC units to standard BNC by dividing by 10^12, which handles the token's 12 decimal places. Adds metadata fields including market sector, business segment, product, and chain identifiers.
- **Key fields**: `daily_timestamp` for grouping, `amount` for summation, `token_incentives` as the converted reward total

### Component C: USD conversion
- **Purpose**: Converts daily BNC reward totals to USD values using market prices
- **Logic**: Applies the dbt macro for CoinGecko price conversion, matching daily reward amounts with corresponding end-of-day BNC token prices. Uses the `bifrost-native-coin` identifier to retrieve price data from CoinGecko feeds. Maintains the daily timestamp grain and preserves all metadata fields through the conversion process.
- **Key fields**: `token_incentives` converted to USD values, `timestamp` for price matching

### Final aggregation
- **Combining components**: The calculation flows sequentially from raw events through aggregation and conversion, with no final joining required since it processes a single data stream
- **Currency conversion**: USD conversion uses end-of-day CoinGecko prices for the BNC token, applied to daily aggregated amounts
- **Time aggregation**: Daily boundaries are established by truncating event timestamps to day precision, with all events within a day summed together
- **Final calculation**: The expenses metric equals the daily USD value of block rewards, calculated as the sum of individual reward events per day, converted from micro-BNC to BNC units, then multiplied by the daily BNC/USD exchange rate. The metric applies zero-filling for days with no reward activity to maintain continuous time series data.

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

Total project operating and incentive expenses.

BifrostBNC

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Expenses

Expenses

Competitive landscape

Chain breakdown