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

Kilt is digital identity solution powered by Polkadot Relay chain.

KILT holders own and govern the protocol.

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Kilt

# Kilt Token incentives Methodology

## 1. Overview

The value of native assets distributed to participants for securing the network and participating in governance is measured by Token incentives. For Kilt Chain, this primarily consists of rewards issued to collators and delegators for their roles in the parachain staking mechanism. These distributions are used to incentivize ongoing network maintenance and are considered 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**: Identify and extract the quantity of native assets issued as rewards to network participants.
- **Logic**: `Rewarded` events are parsed from the `parachainStaking` pallet on Kilt Chain. The reward amount is extracted from the event data and normalized by decimal precision.
- **Key fields**: `event_data` (containing reward quantities) and `block_timestamp`.

### Component B: USD conversion and aggregation

- **Purpose**: Normalize the value of rewards into USD for cross-project comparison.
- **Logic**: Reward amounts are aggregated at a daily granularity. These totals are multiplied by end-of-day price feeds for the native KILT asset. The calculation accounts for historical asset price data to ensure accurate valuation at the time of distribution.

### Component C: Finalization and data continuity

- **Purpose**: Ensure the metric is consistent and free of data gaps.
- **Logic**: The daily USD values are processed through a finalization macro where a fill-forward strategy is applied to handle instances of missing data. All values are aligned to UTC day boundaries.

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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