# Flow EVM Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Flow EVM to operate its network, primarily consisting of token incentives paid to validators. These incentives are used to secure the network and bootstrap the ecosystem. For Flow EVM, this metric is set to zero as all protocol-level staking rewards and inflationary incentives are managed through the native Flow environment. These costs are captured and attributed to the Flow product rather than the EVM-compatible execution layer to prevent duplicative reporting of protocol-level expenses.

## 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 attribution

- **Purpose**: Define the allocation of protocol-level expenses to the Flow EVM product.
- **Logic**: Expenses for Flow EVM are hardcoded to zero. This reflects the architectural design of the network where all validator rewards and minted token incentives are emitted and tracked via the native Flow staking contracts. While Flow EVM generates transaction fees, the inflationary rewards used to subsidize the network are recorded as expenses for the Flow product.

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

Total project operating and incentive expenses.

Expenses

Blockchains (L1)

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

Flow is a smart contract platform for decentralized applications (a blockchain). Flow was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and launched in 2019.

FLOW holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Flow’s investors include a16z, Coatue, Coinfund, Fabric Ventures, etc.

Flow EVM

Expenses

Expenses

Chain breakdown