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

Hedera is a decentralized enterprise-grade public network that uses proof-of-stake hashgraph consensus to offer low & fixed fees, 10k TPS, and instant transaction finality. Hedera was founded by Leemon Baird, Mance Harmon, etc. and launched in 2019.

HBAR holders own and govern the protocol. They currently take a cut of the total transaction and query fees paid by users (revenue). Hedera’s investors include BlockTower Capital, Continue Capital, Unanimous Capital, etc.

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Hedera

# Hedera Token incentives Methodology

## 1. Overview

Token incentives for Hedera measures the total daily value of rewards distributed to network participants through the Hedera consensus mechanism. This metric captures both staking rewards paid to HBAR stakers and node rewards distributed to consensus nodes that validate transactions. The calculation aggregates all reward distributions from Hedera's dedicated reward accounts on a daily basis and converts the amounts to USD to provide a standardized measure of network incentive spending.

## 2. Data sources

- **Hedera HBAR transfer records**: Raw transfer data from the Hedera network capturing all HBAR movements between accounts, including reward distributions
- **Hedera blockchain transaction data**: Transaction metadata including block timestamps, transaction hashes, and node information
- **End-of-day price feeds**: CoinGecko price data for HBAR token used for USD conversion
- **Hedera reward account data**: Transfer records specifically from designated Hedera reward distribution accounts

## 3. Step-by-step calculation

### Component A: Raw HBAR transfer extraction
- **Purpose**: Extracts all HBAR transfer records from the Hedera network with transaction metadata
- **Logic**: Retrieves comprehensive transfer data including block timestamps, transaction details, account addresses, and transfer amounts from Hedera network records
- **Key fields**: `block_timestamp` for timing, `account_address` for identifying reward accounts, `transfer_amount` for reward values, `transaction_hash` for transaction tracking

### Component B: Token incentives identification  
- **Purpose**: Identifies and filters transfers that represent network token incentives
- **Logic**: Filters HBAR transfers to only include records from two specific Hedera reward accounts: `0.0.800` (Staking Reward Account) and `0.0.801` (Node Reward Account). Only positive transfer amounts are included to capture outbound reward distributions
- **Key fields**: `account_address` filtered to reward accounts, `transfer_amount` filtered for positive values, `block_timestamp` truncated to daily granularity

### Component C: Daily aggregation
- **Purpose**: Aggregates all reward distributions on a daily basis
- **Logic**: Groups filtered reward transfers by day using timestamp truncation and sums all transfer amounts within each day to calculate total daily incentives
- **Key fields**: `timestamp` truncated to day level, `amount` as sum of daily reward transfers

### Component D: Decimal and currency conversion
- **Purpose**: Converts raw HBAR amounts to proper decimal representation and USD values
- **Logic**: Applies decimal correction by dividing amounts by 1e8 to account for HBAR's 8 decimal places, then converts to USD using end-of-day CoinGecko price feeds
- **Key fields**: `token_incentives` in corrected HBAR amounts, USD conversion applied through price multiplication

### Final aggregation
- **Combining components**: Daily reward amounts are processed through a single pipeline from raw transfers to final USD values
- **Currency conversion**: USD conversion uses end-of-day CoinGecko HBAR price feeds applied after decimal correction
- **Time aggregation**: Daily boundaries determined by timestamp truncation of Hedera block timestamps to day granularity  
- **Final calculation**: Total daily token incentives equal the sum of all positive transfers from Hedera reward accounts (`0.0.800` + `0.0.801`) on each day, converted from raw HBAR units to decimal representation (divided by 1e8) and multiplied by daily USD price

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

Value of native tokens distributed as incentives.

HederaHBAR

Token incentives

Token incentives

Competitive landscape