Validators process transactions and receive fees from users (supply-side fees).

Fantom is a smart contract platform for decentralized applications (a blockchain). Fantom was founded by Dr. Ahn Byung Ik and launched in 2019.

FTM holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Fantom’s investors include DHVC, Arrington XRP Capital, 8 decimal Capital, etc.

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# Fantom Earnings Methodology

## 1. Overview

The Fantom earnings metric measures the protocol's net profitability by calculating daily revenue minus daily expenses in USD. Revenue represents the protocol's share of network fees (30% of total gas fees), while expenses represent FTM token rewards paid to validators and delegators. This metric answers the question: "Is the Fantom network generating positive cash flow after accounting for token incentives?"

The calculation follows a simple profit formula: Earnings = Revenue - Expenses, where both components are aggregated daily and converted to USD using end-of-day price feeds.

## 2. Data sources

The calculation relies on these primary data sources:

- **Blockchain transaction data**: Fantom transaction records containing gas usage metrics, effective gas prices, and execution details
- **Smart contract events**: Parsed events from Fantom's Special Fee Contract (SFC) including validator reward distributions, delegation rewards, and reward claims
- **Token price feeds**: End-of-day price feeds for FTM token USD conversion
- **Historical price data**: CoinGecko daily market data for FTM prices prior to 2021 when internal price feeds are unavailable
- **Token metadata**: FTM contract address (`0x21be370d5312f44cb42ce377bc9b8a0cef1a4c83`) and decimal precision information

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Calculate the protocol's daily revenue from its share of network fees
- **Logic**: Process all Fantom transactions to extract gas usage data. For each transaction, multiply `gas_used` by `effective_gas_price` to get the total gas fee paid. Convert gas prices from wei to FTM by dividing by 10^18. Sum all transaction fees daily using timestamp truncation to day boundaries. Apply the protocol's fee share rate of 30% (composed of 15% vault fee share, 10% dApp fee share, and 5% burn fee share) to get protocol revenue. Convert FTM amounts to USD using end-of-day price feeds matched by timestamp and token address.
- **Key fields**: `gas_used` (gas consumed), `effective_gas_price` (gas price in wei), `block_timestamp` (transaction timing), `fees` (calculated total fees)

### Component B: Expenses calculation

- **Purpose**: Calculate daily expenses from FTM token rewards paid to network participants
- **Logic**: Parse reward events from Fantom's Special Fee Contract including `UnstashedRewards`, `ClaimedValidatorReward`, `ClaimedDelegationReward`, `ClaimedRewards`, and `RestakedRewards` events. For v1/v2 SFC events, extract the reward amount from the specific parameter field (`rewards`, `reward`). For v3 SFC events, sum the three reward components: `unlockedReward`, `lockupBaseReward`, and `lockupExtraReward`. Convert all amounts from wei to FTM by dividing by 10^18. Aggregate rewards daily by summing all reward events within each day boundary. Convert FTM amounts to USD using end-of-day price feeds, with fallback to CoinGecko historical data for dates before 2021-01-01 when internal price feeds are unavailable.
- **Key fields**: `amount` (reward amount in wei), `unlockedReward` (unlocked stake rewards), `lockupBaseReward` (locked stake base rewards), `lockupExtraReward` (locked stake duration bonuses), `block_timestamp` (reward timing)

### Final aggregation

- **Combining components**: Revenue and expenses are calculated as separate daily time series, then joined by date to compute daily earnings
- **Currency conversion**: All FTM amounts are converted to USD using end-of-day price feeds matched by timestamp, chain, and token address. Historical periods before 2021 use CoinGecko price data as fallback
- **Time aggregation**: Both revenue and expenses are aggregated to daily boundaries using timestamp truncation, ensuring consistent daily reporting periods
- **Final calculation**: Daily earnings equals daily revenue minus daily expenses (Earnings = Revenue - Expenses). Missing days are filled with zero values to ensure complete time series coverage

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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