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Blockchains (L1)

Movement

# Movement Earnings Methodology

## 1. Overview

Movement earnings measures the daily profitability of the Movement blockchain by calculating net income as revenue minus expenses. Revenue consists of transaction fees paid by users, while expenses represent staking rewards distributed to validators and delegators. This metric answers the question: "How much profit does the Movement protocol generate after accounting for its primary operating costs?" The calculation follows the fundamental accounting equation: Earnings = Revenue - Expenses.

## 2. Data sources

- **Movement transaction records**: All transactions executed on the Movement blockchain, containing gas usage and pricing information
- **Movement event logs**: Blockchain events specifically capturing staking reward distributions through the stake module
- **End-of-day price feeds**: Daily USD price data for the native MOVE token to enable currency conversion
- **Token metadata**: Configuration data for the MOVE token including decimal precision (8 decimals)

## 3. Step-by-step calculation

### Component A: Revenue calculation (transaction fees)

- **Purpose**: Calculate daily revenue from transaction fees paid by users
- **Logic**: Extract all Movement transactions and compute gas fees by multiplying `gas_used` by `gas_unit_price`. The `gas_unit_price` is normalized by dividing by 10^8 to account for Movement's 8-decimal precision. Special handling exists for genesis transactions with timestamps before January 1, 2000 - these are reassigned to December 5, 2024. Daily fee totals are calculated by truncating timestamps to day boundaries and summing all gas fees within each day
- **Key fields**: `gas_used` (gas consumed by transaction), `gas_unit_price` (price per gas unit, normalized), `block_timestamp` (transaction timing), `transaction_hash` (unique identifier)

### Component B: Expenses calculation (staking rewards)

- **Purpose**: Calculate daily expenses from staking rewards distributed to validators and delegators
- **Logic**: Extract blockchain events with event types `0x1::stake::DistributeRewardsEvent` and `0x1::stake::DistributeRewards` from Movement event logs. Parse the `rewards_amount` field from the event data and normalize by dividing by 10^8 to match Movement's decimal precision. Aggregate reward distributions by day, summing all rewards distributed within each daily period
- **Key fields**: `event_type` (filtered for staking reward events), `rewards_amount` (reward amount in raw units), `pool_address` (validator/pool receiving rewards), `block_timestamp` (event timing)

### Final aggregation

- **Combining components**: Revenue and expenses are calculated independently as separate daily time series, then joined by date to compute earnings for each day
- **Currency conversion**: Both revenue and expenses are converted from native MOVE tokens to USD using end-of-day price feeds and the `convert_to_usd_and_correct_decimals` process
- **Time aggregation**: All calculations use daily boundaries by truncating timestamps to the day level, ensuring consistent daily granularity across both components  
- **Final calculation**: Daily earnings equals daily revenue minus daily expenses, with missing dates filled with zero values to maintain complete time series continuity

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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