# Kilt Chain Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Kilt Chain to operate its decentralized identity infrastructure. This metric specifically captures token incentives distributed to network participants as compensation for securing the chain and facilitating consensus. These expenditures are denominated in the native KILT asset and converted to USD to reflect the protocol's ongoing operational costs.

## 2. Data sources

- **Blockchain events**: `Rewarded` events from the `parachainStaking` pallet on Kilt Chain
- **External data**: End-of-day price feeds for the KILT asset

## 3. Step-by-step calculation

### Component A: Token incentive extraction

- **Purpose**: Identify and quantify the native asset rewards issued to network participants
- **Logic**: `Rewarded` events are parsed from the `parachainStaking` pallet. The reward volume is extracted from the event data and normalized by decimal precision. These records are filtered to ensure only valid staking-related distributions are included in the incentive calculation.
- **Key fields**: `event_data` (reward magnitude), `block_timestamp` (timing)

### Component B: USD conversion and aggregation

- **Purpose**: Normalize reward values to USD and aggregate data to a daily granularity
- **Logic**: Daily token incentive totals are calculated by summing all extracted staking rewards. These totals are then multiplied by end-of-day price feeds for the native KILT asset. A final filtering layer is applied to align the data with chain availability and approved data freshness timestamps.
- **Key fields**: `token_incentives` (aggregated rewards), `price_usd` (valuation)

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

Total project operating and incentive expenses.

Expenses

Blockchains (L1)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Kilt Chain

Archived

Expenses

Expenses

Chain breakdown