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

# Fantom Expenses Methodology

## 1. Overview

Fantom expenses represent the total USD value of token incentives distributed daily by the Fantom network to validators and delegators through staking rewards. This metric captures the network's operational cost of incentivizing network security and participation. The calculation aggregates all reward distributions from the Fantom SFC (Staker) contract across different contract versions, converts them to USD values, and classifies them as network expenses.

## 2. Data sources

- **Fantom blockchain event logs**: Parsed reward distribution events from the SFC (Staker) contract including `UnstashedRewards`, `ClaimedValidatorReward`, `ClaimedDelegationReward`, `ClaimedRewards`, and `RestakedRewards` events
- **End-of-day price feeds**: Daily FTM/USD price data for token value conversion
- **CoinGecko price data**: Historical daily FTM price data used as fallback for dates before January 1, 2021
- **Token metadata**: FTM token contract address and decimal precision information

## 3. Step-by-step calculation

### Component A: Raw reward event extraction
- **Purpose**: Extract all staking reward distribution events from Fantom blockchain
- **Logic**: Parse multiple event types from different versions of the SFC contract. For V1/V2 contracts, extract individual reward amounts from `UnstashedRewards`, `ClaimedValidatorReward`, and `ClaimedDelegationReward` events using their respective `rewards` or `reward` parameters. For V3 contracts, extract and sum three reward components from `ClaimedRewards` and `RestakedRewards` events: `unlockedReward` (rewards for unlocked stake), `lockupBaseReward` (flat rewards for locked stake), and `lockupExtraReward` (duration-scaled rewards for locked stake)
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `address` (recipient), `amount` (total reward amount), `token_address` (wFTM contract address)

### Component B: Daily aggregation and decimal correction
- **Purpose**: Aggregate reward amounts by day and convert from wei to FTM tokens
- **Logic**: Group all reward events by day using timestamp truncation. Sum reward amounts for each day and convert from wei to FTM by dividing by 10^18 (FTM token decimals). Apply business classification labels including chain ID, business line as 'Blockchain', market sector as 'blockchains_l1', and business segment as 'blockchain'
- **Key fields**: `timestamp` (daily), `token_incentives` (daily FTM reward total), classification dimensions

### Component C: USD conversion with dual price sources
- **Purpose**: Convert daily FTM reward totals to USD values
- **Logic**: Join daily reward totals with end-of-day FTM price feeds on date, chain, and token address. For dates where internal price feeds are unavailable (before January 1, 2021), use CoinGecko daily market data as fallback. Multiply FTM amounts by corresponding USD prices to get daily USD-denominated token incentives
- **Key fields**: `token_incentives` (USD value), `price_usd` from either internal feeds or CoinGecko

### Final aggregation
- **Combining components**: The USD-denominated daily token incentives are directly used as the expenses metric, since Fantom's expenses consist entirely of staking reward distributions
- **Currency conversion**: USD conversion occurs at the daily level using end-of-day prices, with CoinGecko serving as historical fallback
- **Time aggregation**: Data is aggregated and reported at daily granularity with timestamp grain set to 'day'
- **Final calculation**: Daily expenses equal the sum of all USD-converted staking rewards distributed on that day, with missing days filled with zero values and chain availability filtering applied

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

Total project operating and incentive expenses.

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Expenses

Expenses

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