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peaq

# peaq Expenses Methodology

## 1. Overview

The Peaq expenses metric measures the daily USD value of token incentives paid out by the Peaq network to validators and stakers. This represents the protocol's operational cost for maintaining network security and operation through reward distributions. The metric captures all native PEAQ token rewards distributed through the network's block reward and parachains staking mechanisms, converted to USD values using end-of-day price feeds.

## 2. Data sources

The calculation uses the following raw data sources:
- **Peaq blockchain events**: Native Peaq blockchain event logs from two specific pallets - the `blockReward` pallet events and `paraStaking` pallet events
- **Block reward events**: `BlockRewardsDistributed` events from the `blockReward` pallet containing reward amounts paid to block producers/validators
- **Staking reward events**: `Rewarded` events from the `paraStaking` pallet containing reward amounts paid to stakers in the parachain staking system  
- **Token price data**: End-of-day PEAQ token price feeds from CoinGecko API providing USD conversion rates
- **Blockchain metadata**: Block timestamps, block numbers, extrinsic hashes, and event indices for proper event identification and deduplication

## 3. Step-by-step calculation

### Component A: Block reward extraction
- **Purpose**: Extracts block reward distributions paid to validators/block producers
- **Logic**: Queries Peaq blockchain event logs for events from the `blockReward` pallet with method `BlockRewardsDistributed`. Extracts the reward amount from the first element of the `event_data` JSON array. Converts the raw amount from wei (1e18 smallest units) to PEAQ token decimals by dividing by 1e18. Captures essential metadata including `block_timestamp`, `block_number`, `extrinsic_hash`, `event_index`, and `chain` for proper identification.
- **Key fields**: `amount` (converted reward amount in PEAQ tokens), `block_timestamp` (event timestamp), blockchain identification fields

### Component B: Staking reward extraction  
- **Purpose**: Extracts staking rewards paid through the parachain staking mechanism
- **Logic**: Queries Peaq blockchain event logs for events from the `paraStaking` pallet with method `Rewarded`. Extracts the reward amount from the second element of the `event_data` JSON array. Applies the same decimal conversion by dividing by 1e18 to convert from wei to PEAQ tokens. Captures the same metadata fields as block rewards for consistent processing.
- **Key fields**: `amount` (converted reward amount in PEAQ tokens), `block_timestamp` (event timestamp), blockchain identification fields

### Component C: Event consolidation and deduplication
- **Purpose**: Combines both reward types and removes any duplicate events
- **Logic**: Unions the block reward and staking reward datasets. Applies deduplication using `distinct` across all key fields including `block_timestamp`, `block_number`, `extrinsic_hash`, `event_index`, and `chain` to ensure each unique reward event is counted only once.
- **Key fields**: Consolidated `amount` field containing all reward types, complete metadata for unique identification

### Component D: Daily aggregation
- **Purpose**: Aggregates individual reward events into daily totals
- **Logic**: Groups all reward events by day using `timestamp_trunc` on `block_timestamp`. Sums all `amount` values within each day to get the total daily PEAQ tokens distributed as rewards. Adds standard metric metadata including `timestamp_grain` set to 'day', `product_id` set to 'peaq', and `chain_id` set to 'peaq'.
- **Key fields**: `timestamp` (daily date), `amount` (total daily PEAQ rewards), metadata fields for metric standardization

### Component E: USD conversion
- **Purpose**: Converts daily PEAQ token amounts to USD values using market prices
- **Logic**: Joins the daily aggregated PEAQ token amounts with CoinGecko end-of-day PEAQ token prices by matching dates. Multiplies the daily `amount` (in PEAQ tokens) by the corresponding daily `price` (USD per PEAQ) to calculate the USD value of distributed rewards. This represents the actual cost to the protocol in market terms.
- **Key fields**: `token_incentives` (USD value of daily rewards), `timestamp` (date), standard metric metadata

### Final aggregation
- **Combining components**: The final expenses metric directly uses the USD-converted token incentives from the previous step, simply renaming `token_incentives` to `expenses` to reflect that these represent protocol operational costs
- **Currency conversion**: USD conversion uses end-of-day CoinGecko PEAQ token prices matched by date, ensuring consistent daily pricing
- **Time aggregation**: Data is aggregated to daily boundaries using day-truncated timestamps, with all events within a calendar day summed together
- **Final calculation**: The expenses metric equals the sum of all daily reward distributions (block rewards plus staking rewards) multiplied by the daily PEAQ token price in USD, representing the total daily cost to the protocol for incentive payments

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

Total project operating and incentive expenses.

peaqPEAQ

Expenses

Expenses

Competitive landscape

Chain breakdown