Validators process transactions and receive validator rewards (supply-side fees).

NEAR Protocol is a smart contract platform for decentralized applications (a blockchain). NEAR Protocol was founded by Alexander Skidanov & Ilya Polosukhin and launched in 2017.

NEAR holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). NEAR Protocol's investors include a16z, Pantera Capital, Libertus, etc.

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Blockchains (L1)

NEAR Protocol

# near Expenses Methodology

## 1. Overview

Expenses are measured as the total value of token incentives issued to network validators on NEAR Protocol. These expenses represent the inflationary cost of securing the network, where NEAR assets are minted and distributed to participants responsible for block production and validation. This metric reflects the protocol's primary operating cost associated with maintaining decentralized consensus.

## 2. Data sources

- **Blockchain events**: Account state changes from the NEAR network
- **External data**: End-of-day price feeds for the NEAR asset

## 3. Step-by-step calculation

### Component A: Validator reward extraction

- **Purpose**: Identify and quantify the issuance of NEAR assets to network validators
- **Logic**: Account updates with the `validator_accounts_update` reason are filtered from network state change records to identify active validator participants. Staked balances for these validator accounts are tracked chronologically using block heights and indices. Reward amounts are calculated by identifying the positive change in an account's staked balance during a validator update event, representing the distribution of newly minted assets.
- **Key fields**: `affected_account_id` (validator identification), `affected_account_staked_balance` (staking tracking), `update_reason` (event classification)

### Component B: Normalization and USD conversion

- **Purpose**: Convert native reward amounts into a standardized USD value
- **Logic**: Reward quantities are normalized by the asset's decimal precision. The resulting values are multiplied by end-of-day price feeds for the NEAR asset to derive the USD value of expenses. Daily totals are aggregated using UTC day boundaries, where any days with missing data are filled with zero values to ensure a continuous time series.
- **Key fields**: `daily_reward_amount` (native issuance), `price` (asset valuation)

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

Total project operating and incentive expenses.

NEAR ProtocolNEAR

Expenses

Expenses

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