# Arc Expenses Methodology

## 1. Overview

Expenses is defined as the total cost incurred by Arc to operate its network infrastructure and incentivize participants. For Arc, this metric is set to zero because no native token incentives are distributed to supply-side or demand-side users, validators, or ecosystem contributors. All transaction fees on Arc are paid in USD Coin and are processed without the issuance of promotional assets. Consequently, no operating expenses or token distributions are recorded on-chain for this product.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

### Component A: Token incentive evaluation

- **Purpose**: To evaluate the value of promotional incentives distributed to Arc network participants.
- **Logic**: The value of token incentives is hardcoded to zero for all daily intervals. This is done to reflect the operational model of Arc, where no native assets are minted or distributed as rewards to validators, liquidity providers, or end users.
- **Key fields**: `token_incentives` (set to zero)

### Component B: Expense aggregation

- **Purpose**: To aggregate all operational and incentive costs into the final metric.
- **Logic**: Total expenses are calculated by summing the token incentives and any recorded operating costs. Since token incentives are set to zero and no other on-chain operating expenses are present, the final expenses metric is resolved to zero for every timestamp.
- **Key fields**: `expenses` (resolved to zero)

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

Total project operating and incentive expenses.

Expenses

Blockchains (L1)

Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

Arc

Expenses

Expenses

Chain breakdown