Liquidity providers deposit funds into BMX and receive trading fees from traders (supply-side fees).

BMX is a non-custodial exchange for spot and perpetual contracts built on Base. BMX has three product lines: Classic, Freestyle, and Based MediaX

BMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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# BMX Token incentives Methodology

## 1. Overview

Token incentives measures the value of native assets that BMX pays out to its supply-side and demand-side users, core contributors, and investors. These incentives are primarily used to compensate stakeholders for participation in the ecosystem, such as providing liquidity to the BLT pool or interacting with Deliswap. The metric is analogous to stock-based compensation in traditional finance and reflects the cost of bootstrapping and maintaining protocol activity through asset issuance.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `IncentiveGauge` contracts and `Distribute` events from `RewardDistributor` contracts, covering Base
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Deliswap incentive tracking

- **Purpose**: Captures the value of incentives distributed to users of the Deliswap product.
- **Logic**: `Claimed` events are parsed from `IncentiveGauge` contracts. The asset address and the raw amount of the incentive are extracted from each event. Only unique events are included to prevent duplicate counting of claimed rewards.
- **Key fields**: `token_address`, `amount`

### Component B: BMX core reward distribution

- **Purpose**: Captures incentives paid to participants in the BMX ecosystem, specifically those related to the BLT pool.
- **Logic**: `Distribute` events are parsed from `RewardDistributor` contracts. The data is filtered to include only events emitted by specific rewarder contract addresses associated with the protocol's core incentive programs. The amount of the distributed asset is extracted for each valid event.
- **Key fields**: `token_address`, `amount`

### Component C: Normalization and USD conversion

- **Purpose**: Normalizes raw event data into a standardized USD value for aggregation.
- **Logic**: Raw amounts from all identified incentive events are normalized by decimal precision using asset metadata. These normalized values are multiplied by the end-of-day price for the respective asset. The resulting USD values are aggregated by day using UTC boundaries, with a zero-filling strategy applied to ensure continuity in the time series.
- **Key fields**: `token_incentives` (USD value)

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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