Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Energy Web X is energy blockchain ecosystem powered by Polkadot Relay chain.

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Energy Web X

# Energy Web X Expenses Methodology

## 1. Overview

EnergyWeb expenses represent the daily USD value of block rewards distributed to validators on the EnergyWeb blockchain. This metric captures the operational costs incurred by the network to incentivize validators for securing the blockchain through the parachainStaking mechanism. The calculation aggregates daily validator rewards and converts them to USD, treating these token incentives as network expenses from an economic perspective.

## 2. Data sources

- **EnergyWeb blockchain events**: Event logs from the EnergyWeb blockchain, specifically from the `parachainStaking` pallet containing `Rewarded` events that record validator reward distributions
- **Block metadata**: EnergyWeb block timestamps and block numbers for temporal aggregation and event sequencing  
- **Token price data**: End-of-day price feeds from CoinGecko for the `energy-web-token` (EWT) to enable USD conversion
- **Token metadata**: EnergyWeb token configuration including decimal precision (18 decimals) for proper unit conversion

## 3. Step-by-step calculation

### Component A: EnergyWeb event processing
- **Purpose**: Extract and process raw EnergyWeb blockchain events to identify validator reward events
- **Logic**: Filter EnergyWeb blockchain event logs to isolate events from the `parachainStaking` pallet with method `Rewarded`. These events contain structured JSON data about validator reward distributions. Extract block timestamps, event indices, and event data for further processing. Apply incremental processing logic to handle only new or updated data since the last run.
- **Key fields**: `timestamp`, `block_number`, `event_index`, `event_data`, `event_method`, `event_pallet`

### Component B: Block reward extraction  
- **Purpose**: Parse reward amounts from validator reward events and prepare for aggregation
- **Logic**: Extract reward amounts from the JSON-formatted `event_data` at offset position 1, which contains the reward amount in EnergyWeb's base unit (uOM - micro OM). Cast the JSON value as a numeric type to enable mathematical operations. Filter to only include successful reward events from the parachainStaking pallet.
- **Key fields**: `amount` (extracted from JSON), `timestamp`, `block_number`, `event_index`

### Component C: Daily reward aggregation and unit conversion
- **Purpose**: Aggregate validator rewards by day and convert from base units to standard token units
- **Logic**: Group reward events by daily timestamp boundaries using timestamp truncation. Sum all reward amounts within each day to get total daily validator rewards. Convert amounts from uOM (micro OM) to OM by dividing by 10^18, accounting for the 18 decimal places in EnergyWeb token precision. Add classification metadata including market sector (`blockchains_l1`), business segment (`blockchain`), and chain identifier (`energyweb`).
- **Key fields**: `daily_timestamp`, `token_incentives`, `chain_id`, `coingecko_id`, `reward_type`

### Component D: USD conversion
- **Purpose**: Convert daily EWT reward amounts to USD using market prices
- **Logic**: Apply CoinGecko price conversion using the `energy-web-token` identifier to convert daily token reward amounts to USD values. Use end-of-day pricing to maintain consistency with daily aggregation boundaries. Handle cases where price data may not be available for certain dates.
- **Key fields**: `token_incentives` (converted to USD), `timestamp`, `chain_id`

### Final aggregation
- **Combining components**: The token incentives data flows directly into the expenses model, where `token_incentives` values are simply relabeled as `expenses` to reflect the economic perspective of treating validator rewards as network operational costs
- **Currency conversion**: USD conversion happens at the daily aggregated token level using CoinGecko end-of-day price feeds for EWT
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day granularity, with all rewards within a calendar day summed together
- **Final calculation**: Expenses equal the daily sum of all validator rewards in USD, calculated as: (sum of daily reward amounts in uOM / 10^18) × EWT end-of-day USD price

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

Total project operating and incentive expenses.

Energy Web XEWT

Expenses

Expenses

Competitive landscape

Chain breakdown