Jurors receive arbitration fees for reviewing evidence and voting coherently on disputes (supply-side fees).

Kleros is a third party arbitration and dispute resolution system built on Ethereum and Gnosis. Kleros was founded by Federico Ast, Clémenet Lesaege and Nicolas Wagner, and was launched in 2019.

PNK tokenholders own and govern the protocol. They do not currently take a cut of the total fees taken by coherent jurors (revenue).

governance

github

twitter

discord

etherscan

website

Infrastructure

Kleros

# Kleros Expenses Methodology

## 1. Overview

Kleros expenses represents the protocol's operational costs through token incentive payments made to participants. The metric tracks two main categories: incentives paid to jurors for participating in dispute resolution and rewards given to contributors of the decentralized tag registry. These token-based payments are treated as operational expenses since they represent the cost of maintaining the decentralized court system. The calculation aggregates daily PNK token incentive payments across Ethereum and Gnosis chains, converts them to USD, and presents the total as protocol expenses.

## 2. Data sources

- **Ethereum event logs**: Parsed `MerkleRedeem_Claimed` events from the Kleros juror reward distribution system containing reward claim transactions
- **Gnosis chain token transfers**: PNK token `Transfer` events specifically from the tag registry reward distribution contract to contributors
- **End-of-day price feeds**: Daily PNK token price data for USD conversion
- **Token metadata**: PNK token contract details for decimal place corrections and address mappings across chains

## 3. Step-by-step calculation

### Component A: Juror incentives tracking
- **Purpose**: Captures incentive payments made to jurors participating in Kleros dispute resolution
- **Logic**: Extracts data from Ethereum `MerkleRedeem_Claimed` events for the PNK token contract. These events are emitted when jurors claim their rewards from the Merkle tree distribution system. Filters out any removed or invalid events to ensure data quality. Each claim represents a juror receiving their earned incentives for participating in court cases.
- **Key fields**: Event timestamp, claiming juror's address (`address`), claimed amount (`_balance`), transaction details for tracking

### Component B: Tagging incentives tracking  
- **Purpose**: Captures reward payments made to contributors of the decentralized tag registry system
- **Logic**: Monitors PNK token transfers on Gnosis chain from a specific reward distribution contract address. Identifies transfers where the protocol distributes rewards to users who contribute valuable tags to the registry system. Maps the Gnosis chain PNK token address to the standard Ethereum PNK address for consistency across the calculation.
- **Key fields**: Transfer timestamp, recipient address (`from_address`), transfer amount (`value`), token contract addresses for both chains

### Component C: Daily aggregation and standardization
- **Purpose**: Combines both incentive types and aggregates to daily totals
- **Logic**: Unions juror and tagging incentives into a single dataset. Groups all incentive payments by day using timestamp truncation to create daily boundaries. Standardizes chain identifiers and business categorization across both data sources. Classifies all incentives under the 'Decentralized Court' business line and 'infrastructure' market sector.
- **Key fields**: Daily timestamp, aggregated `token_incentives` amounts, standardized chain and business classification fields

### Final aggregation
- **Combining components**: Sums all daily token incentive payments across both juror rewards and tagging contributions to create total daily incentive expenses
- **Currency conversion**: Converts PNK token amounts to USD using end-of-day price feeds and applies decimal corrections based on PNK's 18 decimal place structure
- **Time aggregation**: Maintains daily granularity with proper timestamp boundaries using day-level truncation
- **Final calculation**: The total daily incentive payments in USD represent the protocol's operational expenses for maintaining the decentralized court and tag registry systems

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

Total project operating and incentive expenses.

KlerosPNK

Expenses

Expenses

Competitive landscape

Chain breakdown