Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Phala is a specialized privacy-preserving cloud computing blockchain powered by Polkadot Relay chain.

PHA holders own and govern the protocol. Phala’s investors include IOSG Ventures, Incuba Alpha, Candaq Fintech Group, and others.

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Phala

# Phala Expenses Methodology

## 1. Overview

The Phala Network expenses metric measures the daily USD value of token incentives (block rewards) distributed by the Phala Network blockchain. This metric quantifies the protocol's operational costs in the form of PHA token rewards paid to validators and stake pool operators. The calculation directly maps token incentives to expenses, representing the protocol's daily expenditure on network security and validation.

## 2. Data sources

- **Phala Network blockchain events**: Raw event logs from the Phala Network blockchain, specifically `RewardReceived` events from the `phalaStakePoolv2` pallet containing block reward distribution data
- **External price data**: End-of-day PHA token price feeds from CoinGecko for USD conversion
- **Chain metadata**: Token Terminal's chain availability filters and validation rules

## 3. Step-by-step calculation

### Component A: Block reward event extraction
- **Purpose**: Identifies and extracts block reward events from Phala Network blockchain
- **Logic**: Filters Phala Network events to isolate `RewardReceived` events from the `phalaStakePoolv2` pallet. These events represent rewards distributed to validators and stake pool operators. Extracts the reward amount from the second element of the `event_data` array using array offset indexing. Aggregates events by daily timestamp boundaries using day-level truncation.
- **Key fields**: `block_timestamp` for timing, `event_pallet` for pallet identification, `event_method` for event type, `event_data` array containing reward amounts, `block_number` for block identification

### Component B: Token amount processing
- **Purpose**: Converts raw reward amounts from blockchain format to standard PHA token units
- **Logic**: Extracts numeric reward amounts from the parsed event data and converts from microPHA to PHA by dividing by 10^12 (adjusting for 12 decimal places). Groups rewards by daily timestamp and aggregates total rewards per day using sum aggregation. Assigns protocol metadata including chain identifier, market sector classification, and token symbol.
- **Key fields**: `amount` (raw reward value), `token_incentives` (converted PHA amount), `timestamp` (daily boundary), `chain_id` (phala), `coingecko_id` (pha)

### Component C: USD conversion
- **Purpose**: Converts daily PHA token incentives to USD values
- **Logic**: Applies end-of-day PHA token prices from CoinGecko price feeds to convert token amounts to USD values. Uses the convert_to_usd_cg macro to perform price lookup and multiplication. Maintains daily granularity and preserves all metadata fields through the conversion process.
- **Key fields**: `token_incentives` (PHA amount), converted USD values, `coingecko_id` for price lookup

### Final aggregation
- **Combining components**: The expenses metric directly maps the calculated token incentives to expenses with a 1:1 relationship. No additional aggregation or transformation is applied - token incentives become expenses.
- **Currency conversion**: USD conversion occurs at the token incentives stage using end-of-day CoinGecko PHA prices
- **Time aggregation**: Daily boundaries are established by truncating timestamps to day-level granularity
- **Final calculation**: Expenses equals the daily USD value of PHA token incentives distributed as block rewards, with zero-fill strategy applied for days with no reward activity

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

Total project operating and incentive expenses.

PhalaPHA

Archived

Expenses

Expenses

Competitive landscape

Chain breakdown