Validators process transactions and receive fees from users (supply-side fees). DA costs for users are reflected in the transactions fees paid.

Celestia is a proof of stake blockchain optimized for data availability (DA). Celestia was founded by Mustafa Al-Bassam, etc. and launched in 2023.

TIA holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue). Celestia's investors include Polychain Capital, Placeholder, Coinbase Ventures, etc.

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Celestia

# Celestia Expenses Methodology

## 1. Overview

Celestia expenses represent the daily USD value of token incentives paid by the protocol to validators as block rewards. This metric captures the protocol's operational costs for securing the network through validator compensation. The calculation tracks `coinbase` events from Celestia blockchain data, converts micro-TIA rewards to TIA tokens, and applies USD pricing to determine the daily expense amount.

## 2. Data sources

- **Celestia blockchain events**: Parsed `coinbase` event logs from Celestia block production containing validator reward information
- **Event attributes**: JSON-formatted event attributes containing reward amounts and token denominations  
- **CoinGecko price feeds**: End-of-day TIA token price data for USD conversion
- **Block metadata**: Celestia block timestamps and height information for daily aggregation

## 3. Step-by-step calculation

### Component A: Block rewards extraction
- **Purpose**: Extract raw block reward amounts paid to validators from Celestia blockchain events
- **Logic**: Parse Celestia block event logs to identify `coinbase` events that represent validator rewards. Use a custom JavaScript function to extract reward amounts from JSON event attributes. Filter for rewards denominated in `utia` tokens by matching the token suffix pattern. Extract the numeric amount portion using regex pattern matching while preserving the original micro-TIA denomination.
- **Key fields**: `block_timestamp` for timing, `event_attributes` containing reward data, `amount` extracted from attributes, `token_address` set to `utia`

### Component B: Daily aggregation and unit conversion  
- **Purpose**: Aggregate block rewards by day and convert from micro-TIA to standard TIA units
- **Logic**: Group all block rewards by daily timestamp boundaries using timestamp truncation. Sum all reward amounts within each day to get total daily validator compensation. Convert amounts from micro-TIA (utia) to standard TIA tokens by dividing by 10^6. Classify rewards as "Block rewards" type and assign to blockchain business segment.
- **Key fields**: `daily_timestamp` for time boundaries, `token_incentives` as converted TIA amounts, `reward_type` as classification

### Component C: USD conversion and standardization
- **Purpose**: Convert TIA token amounts to USD values and apply schema standardization  
- **Logic**: Apply USD conversion using CoinGecko end-of-day price feeds for TIA tokens. The conversion matches daily timestamps to corresponding price data. Apply schema standardization and validation through finalization macros. Implement forward-fill strategy to handle missing days with zero values.
- **Key fields**: `token_incentives` converted to USD, `timestamp` standardized to daily grain, `chain_id` set to celestia

### Final aggregation
- **Combining components**: Take the USD-converted token incentives from the standardized daily aggregation
- **Currency conversion**: USD values calculated using end-of-day TIA prices from CoinGecko at daily boundaries
- **Time aggregation**: Daily aggregation using timestamp truncation with forward-fill for gaps
- **Final calculation**: Rename `token_incentives` field to `expenses` to represent the protocol's daily operational costs for validator rewards, measured in USD

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

Total project operating and incentive expenses.

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Expenses

Expenses

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