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.

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# Chainflip Token incentives Methodology

## 1. Overview

The value of native FLIP assets minted and distributed to validators and other stakeholders on the Chainflip Chain is measured by Token incentives. These incentives are distributed to secure the network and compensate validators for their participation in consensus and state chain operations. The metric is treated as analogous to stock-based compensation in traditional finance, representing the ongoing dilution of the asset supply to fund protocol operations.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Historical emissions reconstruction (Pre-October 2025)
- **Purpose**: Reconstruct daily validator emissions prior to the implementation of the `FlipMinted` event
- **Logic**: Emission rates per block are extracted from historical epoch data. The total FLIP minted in each epoch is calculated by multiplying the authority emission rate per block by the number of blocks in the epoch. These epoch-level emissions are then allocated to individual days based on the proportion of seconds in each day that overlap with the active epoch.
- **Key fields**: `start_ts` (epoch start timestamp), `next_start_ts` (epoch end timestamp), `authority_rate_flip_per_block` (emission rate), `block_number` (block height)

### Component B: Event-based emissions tracking (Post-October 2025)
- **Purpose**: Capture real-time FLIP minting events on the Chainflip Chain
- **Logic**: `FlipMinted` events are parsed from the `flip` pallet. The raw emission amounts are extracted from the event data and aggregated on a daily basis.
- **Key fields**: `block_timestamp` (event timestamp), `amount` (minted quantity)

### Component C: USD conversion and aggregation

- **Purpose**: Combine historical and real-time emissions and convert the values to USD
- **Logic**: Daily emissions from the historical reconstruction and the event-based tracking are combined into a single daily time series. The aggregated daily FLIP amounts are normalized by decimal precision and multiplied by the end-of-day price of the FLIP asset to determine the final USD value of the token incentives.
- **Key fields**: `timestamp` (day boundary), `minted_flip` (aggregated daily emissions), `price_usd` (asset price)

*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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