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

Bitcoin is a distributed ledger for transfer and store of value (a blockchain). Bitcoin was founded by a pseudonym Satoshi Nakamoto and launched in 2009.

BTC holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

github

block explorer

Blockchains (L1)

Bitcoin

# Bitcoin Token incentives Methodology

## 1. Overview

Token incentives represent the daily USD value of block subsidies (mining rewards) paid to Bitcoin miners. This metric quantifies the total economic incentives distributed by the Bitcoin network to secure the blockchain through proof-of-work mining. The calculation multiplies the BTC amount of block subsidies by Bitcoin's USD price and aggregates these values daily.

## 2. Data sources

- **Bitcoin blockchain block data**: Raw Bitcoin blockchain records containing block timestamps, block heights, block subsidies (mining rewards), and transaction fees
- **Chainlink Bitcoin price feeds**: End-of-day Bitcoin USD price feeds from Chainlink oracle network using feed address `0xf4030086522a5beea4988f8ca5b36dbc97bee88c`
- **CoinGecko historical price data**: Historical end-of-day Bitcoin USD prices from CoinGecko API using Bitcoin ID `bitcoin` for periods before Chainlink coverage

## 3. Step-by-step calculation

### Component A: Bitcoin block data extraction
- **Purpose**: Extract block-level mining reward data from Bitcoin blockchain
- **Logic**: Process raw Bitcoin blockchain block records to obtain block timestamps, block numbers, and block subsidy amounts. Convert block subsidies from the native satoshi denomination to BTC by dividing by 10^8. Each block contains a `block_subsidy` field representing the mining reward paid to the miner who successfully mined that block.
- **Key fields**: `block_timestamp` for timing, `block_number` for block height, `block_subsidy_amount` for mining rewards in BTC

### Component B: Bitcoin price data compilation  
- **Purpose**: Obtain comprehensive daily Bitcoin USD pricing data
- **Logic**: Combine two price data sources to ensure complete historical coverage. Use Chainlink price feeds for dates after December 10, 2019, aggregating intraday prices to daily averages. For earlier dates (December 10, 2019 and before), use CoinGecko historical daily prices. This hybrid approach ensures accurate pricing across Bitcoin's entire operational history.
- **Key fields**: `timestamp` for daily date, `price` for Bitcoin USD price

### Final aggregation
- **Combining components**: Join Bitcoin block data with price data using daily timestamp truncation, matching each block's date with the corresponding daily Bitcoin price
- **Currency conversion**: Multiply the `block_subsidy_amount` (in BTC) by the daily Bitcoin `price` (in USD) to convert mining rewards to USD values
- **Time aggregation**: Truncate all block timestamps to daily boundaries and sum all block subsidies within each day
- **Final calculation**: Sum all USD-converted block subsidies for each day using the formula: daily token incentives = SUM(block_subsidy_amount × Bitcoin_USD_price) for all blocks mined on that day

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

Value of native tokens distributed as incentives.

BitcoinBTC

Token incentives

Token incentives

Competitive landscape