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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NEAR Protocol

# near Token Incentives Methodology

## 1. Overview

The total value of native NEAR assets distributed to validators as rewards for participation in the network's consensus mechanism is captured by Token Incentives. These distributions represent the inflationary supply issued by the protocol to compensate validators for securing the Near network. This metric is a key indicator of the protocol's expenditure on security and the primary incentive for staking participation.

## 2. Data sources

- **Blockchain events**: `account_changes` records from Near
- **External data**: End-of-day price feeds for the NEAR asset

## 3. Step-by-step calculation

### Component A: Validator identification and balance tracking

- **Purpose**: To identify all active validator addresses and track their historical balance changes.
- **Logic**: Validator addresses are identified by filtering account change records where the update reason is specified as `validator_accounts_update`. For all identified validator addresses, a comprehensive history of account changes is retrieved. These changes are ordered chronologically by block height and index to create a sequential record of staked and non-staked balance updates.
- **Key fields**: `affected_account_id` (validator address), `affected_account_staked_balance`, `block_timestamp`, and `update_reason`.

### Component B: Reward amount extraction

- **Purpose**: To isolate specific balance increases that represent protocol rewards rather than external transfers or staking operations.
- **Logic**: Reward amounts are calculated by identifying positive deltas in a validator's staked balance that coincide with `validator_accounts_update` records. If the staked balance increases during such an update, the difference between the current and previous balance is classified as a reward. Conversely, balance decreases occurring during other update types are identified as withdrawals and excluded from this metric. All amounts are normalized by decimal precision.
- **Key fields**: `reward_amount` (calculated delta) and `update_reason`.

### Component C: USD conversion and aggregation

- **Purpose**: To normalize reward values into a common currency for financial analysis.
- **Logic**: Daily reward totals are calculated by summing the extracted reward amounts across all validators. These native NEAR quantities are multiplied by end-of-day price feeds to determine the USD value. The final metric is aggregated at a daily granularity using UTC day boundaries, with missing values filled with zeros to ensure a continuous time series.
- **Key fields**: `daily_reward_amount`, `price`, and `timestamp`.

*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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