# Kilt Chain Token incentives Methodology

## 1. Overview

Token incentives measures the value of native assets distributed by Kilt Chain to reward supply-side participants and stakeholders. For Kilt Chain, this metric specifically captures the value of native assets issued to participants through the network's staking mechanism. These distributions represent a protocol expense used to incentivize network security and are analogous to stock-based compensation in traditional finance.

## 2. Data sources

- **Blockchain events**: `Rewarded` events from the `parachainStaking` pallet, covering Kilt Chain
- **External data**: End-of-day price feeds for native assets

## 3. Step-by-step calculation

### Component A: Staking reward extraction

- **Purpose**: To identify and quantify native asset distributions issued as rewards to network participants.
- **Logic**: `Rewarded` events are parsed from the `parachainStaking` pallet. The reward amount is extracted from the event data, which represents the native asset value distributed to the reward recipient. Amounts are normalized by decimal precision.
- **Key fields**: `block_timestamp` (timing), `event_data` (reward amount), and `event_method` (event identification).

### Component B: USD conversion and daily aggregation

- **Purpose**: To normalize reward values to USD and aggregate them into a daily time series.
- **Logic**: The extracted asset amounts are multiplied by end-of-day price feeds corresponding to the day the event occurred. Values are aggregated to a daily granularity using UTC day boundaries. A fill-forward strategy is applied to ensure data continuity across the time series.
- **Key fields**: `timestamp` (daily period), `token_incentives` (summed value), and `price_usd` (asset valuation).

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

Value of native tokens distributed as incentives.

Token incentives

Blockchains (L1)

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

Kilt Chain

Archived

Token incentives

Token incentives

Chain breakdown