# Gearbox V1 Token incentives Methodology

## 1. Overview

Token incentives measures the value of native tokens that a project pays out to its supply/demand-side users, core contributors, and/or investors. The tokens are primarily used to compensate stakeholders either retroactively or on an ongoing basis. The metric is considered analogous to stock-based compensation in traditional finance. For Gearbox V1, token incentives are calculated based on claims of the native GEAR asset from the protocol's historical distribution contracts.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from the Gearbox V1 distributor contract, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata for the GEAR asset

## 3. Step-by-step calculation

### Component A: Gearbox V1 distributor claim extraction

- **Purpose**: GEAR asset distributions from the Gearbox V1 distributor contract are identified and extracted.
- **Logic**: ERC-20 `Transfer` events of the GEAR asset on Ethereum are filtered to isolate transfers originating from the Gearbox V1 distributor contract (`0xa7df60785e556d65292a2c9a077bb3a8fbf048bc`). Transfers to the protocol treasury address are excluded to prevent the inclusion of treasury sweeps or returns. Distributions associated with the V2 airdrop and liquidity-mining programs are isolated through this filtering process.
- **Key fields**: `block_timestamp`, `to_address` (recipient account), `value` (raw transfer amount), `token_address`

### Component B: Decimal normalization and daily aggregation

- **Purpose**: Raw asset transfer values are normalized and aggregated to a daily granularity.
- **Logic**: Raw transfer amounts are normalized by the decimal precision of the GEAR asset using asset metadata. The normalized amounts are then aggregated by day using UTC day boundaries.
- **Key fields**: `timestamp`, `token_incentives` (normalized amount)

### Component C: USD conversion

- **Purpose**: Daily normalized incentive values are converted into USD.
- **Logic**: Daily aggregated GEAR incentive amounts are multiplied by the end-of-day price of the GEAR asset. Final values are outputted with daily granularity.
- **Key fields**: `timestamp`, `token_incentives` (USD value)

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

Value of native tokens distributed as incentives.

Token incentives

Lending

Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Gearbox V1

Token incentives

Token incentives

Chain breakdown