# Chainflip Chain Token incentives Methodology

## 1. Overview

Token incentives measures the value of native FLIP assets minted and distributed to validators on Chainflip Chain. These incentives are used to secure the network and compensate validators for their participation in consensus and state chain operations. The metric represents the ongoing asset issuance analogous to stock-based compensation in traditional finance. The value of these incentives is converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `FlipMinted` events from `flip` contracts, and emission rate updates from state chain snapshots, covering Chainflip Chain
- **External data**: End-of-day price feeds for the native FLIP asset

## 3. Step-by-step calculation

### Component A: Historical emission reconstruction

- **Purpose**: Reconstruct daily authority emissions prior to October 2025 when direct minting events were not emitted.
- **Logic**: Emission rates per block are extracted from historical state chain snapshots. The emission rate is multiplied by the number of blocks in each epoch to calculate the total emissions per epoch. These epoch-level emissions are then allocated to individual days based on the proportion of the epoch's duration (in seconds) that falls within each UTC day boundary.
- **Key fields**: `block_timestamp`, `authority_emission_per_block`, `block_number`

### Component B: Event-based emission tracking

- **Purpose**: Capture real-time asset minting events on the state chain starting from October 2025.
- **Logic**: `FlipMinted` events are parsed from `flip` contracts. The minted asset amounts are extracted from the event data and aggregated daily.
- **Key fields**: `block_timestamp`, `amount`

### Component C: USD conversion and aggregation

- **Purpose**: Combine historical and event-based emissions, normalize by decimal precision, and convert to USD.
- **Logic**: Historical daily emissions and event-based daily mints are combined into a single continuous time series. Asset amounts are normalized by decimal precision. The daily normalized asset quantities are multiplied by the end-of-day price of the FLIP asset to determine the daily token incentives in USD. Missing days are filled with zeros, and chain availability filters are applied.
- **Key fields**: `timestamp`, `token_incentives`

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

Value of native tokens distributed as incentives.

Token incentives

Blockchains (L1)

Chainflip operates a decentralized network of 150 validators that collectively control multi-chain vaults using threshold signature schemes (TSS). The protocol uses a Just-In-Time (JIT) AMM where liquidity providers compete to fill swap orders at the moment of execution, enabling capital-efficient cross-chain swaps. A portion of each swap fee is used to buy and burn FLIP tokens.

Chainflip is a decentralized cross-chain swap protocol that enables native asset exchanges across blockchains including Bitcoin, Ethereum, and Solana without wrapped tokens or traditional bridges. It was launched in 2023 by Chainflip Labs and uses a JIT AMM model combined with MPC-based vault technology to provide competitive pricing on cross-chain trades.

Chainflip is governed by its validator set and FLIP tokenholders. Validators stake FLIP to participate in the network and earn fees from swaps. The protocol is developed and maintained by Chainflip Labs.

Chainflip Chain

Token incentives

Token incentives

Chain breakdown