Ink batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Ink is an Ethereum Layer 2 (L2) blockchain built on Optimism's Superchain, focused on providing a secure, scalable infrastructure for Web3 applications.

Kraken team owns and governs the protocol. Kraken's investors include RIT Capital Partners, Hummingbird Ventures, Money Partners Group, etc.

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Blockchains (L2)

# Ink Token incentives Methodology

## 1. Overview

Token incentives represent rewards or subsidies distributed to users in the form of tokens. For the Ink blockchain, this metric is set to zero, indicating that the protocol does not distribute token-based incentives to users. The calculation reuses the structural framework from fees calculation but replaces all values with zero to maintain consistent data schema and time series continuity.

## 2. Data sources

- **Blockchain transactions**: Ink blockchain transaction records containing gas usage, gas prices, and fee information
- **External data**: End-of-day token price feeds for ETH (used in the underlying fee structure but not for the final zero values)
- **Token metadata**: ETH token information for gas fee calculations (underlying structure only)

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract raw transaction data from Ink blockchain to establish the basic metric structure
- **Logic**: The system retrieves Ink blockchain transaction records including `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, gas usage metrics (`gas_used`, `l1_gas_used`), and pricing information (`gas_price`, `l1_gas_price`, `l1_fee_scalar`). ETH is identified as the native gas token with address `0x4200000000000000000000000000000000000006`
- **Key fields**: `block_timestamp` for time aggregation, gas metrics for fee calculations, addresses for transaction identification

### Component B: Gas fee calculation  
- **Purpose**: Calculate total gas fees to establish the underlying data structure framework
- **Logic**: The system computes L2 gas fees by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei to ETH. L1 gas fees are calculated by multiplying `l1_gas_used` by `l1_gas_price` and `l1_fee_scalar`, then dividing by 1e18. Total fees combine both L1 and L2 components
- **Key fields**: `l2_gas_fee` and `l1_gas_fee` calculated in ETH, combined as total `fees`

### Component C: USD conversion and aggregation
- **Purpose**: Convert fees to USD and aggregate by day to create the metric structure template
- **Logic**: Gas fees are converted from ETH to USD using end-of-day price feeds. The system truncates `block_timestamp` to day level and aggregates fees by day. Business metadata is added including `business_line` as 'blockchain', `market_sector_id` as 'blockchains_l2', and `chain_id` as 'ink'
- **Key fields**: Daily `timestamp`, `fees` converted to USD, chain and business identifiers

### Component D: Zero replacement for token incentives
- **Purpose**: Create token incentives metric by using the fee structure but setting all values to zero
- **Logic**: The system takes the complete structure from the fees calculation including timestamps, identifiers, and schema but replaces the `fees` values with 0 to create `token_incentives`. This maintains data consistency and ensures proper time series coverage
- **Key fields**: `token_incentives` set to 0, all structural fields preserved from fees calculation

### Final aggregation
- **Combining components**: The token incentives metric inherits the complete daily time series structure from fees calculation but with zero values
- **Currency conversion**: No currency conversion needed since all values are zero
- **Time aggregation**: Daily boundaries maintained from the underlying fee structure with `timestamp_grain` set to 'day'
- **Final calculation**: Token incentives = 0 for all time periods, maintaining the same daily aggregation structure as fees but with zero values throughout

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

Value of native tokens distributed as incentives.

Ink

Token incentives

Token incentives

Competitive landscape

Chain breakdown