# Katana Chain Token incentives Methodology

## 1. Overview

The value of native assets paid out to supply/demand-side users, core contributors, and investors on Katana Chain is measured by the Token incentives metric. These incentives are distributed as KAT emissions to liquidity providers via Merkl, specifically for Sushi vKAT gauge winners and Morpho campaigns. The realized value of these incentives is captured at the time of the on-chain claim rather than the initial campaign budget. A precise view of the network's ongoing distribution expenses is provided, which is analogous to stock-based compensation in traditional finance.

## 2. Data sources

- **Blockchain events**: `Claimed` events are parsed from the Merkl `Distributor` contract, covering Katana Chain.
- **External data**: End-of-day price feeds and asset metadata are utilized for KAT, wKAT V1, and wKAT V2.

## 3. Step-by-step calculation

### Component A: Merkl claim extraction

- **Purpose**: Raw reward claims are captured from the canonical Merkl Distributor contract.
- **Logic**: `Claimed` events are parsed from the Merkl `Distributor` contract on Katana Chain. Transactions where the event is marked as removed are excluded. The raw claim amount, user address, and asset address are extracted for each claim.
- **Key fields**: `block_timestamp`, `user_address`, `token_address`, and `amount`.

### Component B: Asset normalization and aggregation

- **Purpose**: Wrapped assets are normalized to the canonical KAT asset and daily claims are aggregated.
- **Logic**: Claims for wKAT V1 and wKAT V2 are normalized to canonical KAT on a 1:1 basis to prevent double-counting. Normalized claims are aggregated by day, chain, and product (Katana Chain).
- **Key fields**: `timestamp`, `token_address`, and `token_incentives`.

### Component C: Decimal correction and USD conversion

- **Purpose**: Asset amounts are normalized by decimal precision and converted to USD.
- **Logic**: Aggregated asset amounts are normalized by decimal precision using asset metadata. The normalized amounts are multiplied by end-of-day asset prices to calculate the USD value of the incentives. Missing days are zero-filled to ensure a continuous daily time series, and chain availability filters are applied.
- **Key fields**: `timestamp`, `token_incentives`, and `price_usd`.

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

Value of native tokens distributed as incentives.

Token incentives

Blockchains (L2)

The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

Katana Chain

Token incentives

Token incentives

Chain breakdown