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 Token incentives Methodology

## 1. Overview

Token incentives for Phala Network measures the daily USD value of block rewards distributed to network participants. This metric captures the monetary incentives provided by the protocol to validators and other network participants for securing and operating the Phala blockchain. The calculation aggregates daily reward events from Phala's substrate-based blockchain, converts amounts from native units to USD, and presents the data as a continuous daily time series.

## 2. Data sources

- **Phala blockchain event logs**: Raw event data from Phala Network's substrate-based blockchain, including structured event data with reward amounts and metadata
- **Phala staking pool events**: Specifically `RewardReceived` events from the `phalaStakePoolv2` pallet containing reward distribution amounts
- **End-of-day price feeds**: CoinGecko price data for PHA token to convert native token amounts to USD values
- **Blockchain metadata**: Block numbers, timestamps, and event indices for proper data organization and incremental processing

## 3. Step-by-step calculation

### Component A: Raw event extraction
- **Purpose**: Extract and organize raw Phala blockchain events for processing
- **Logic**: Raw Phala blockchain events are extracted and partitioned by day using block timestamps truncated to daily boundaries. The data includes event metadata such as `block_number`, `event_index`, `event_data`, `event_method`, `event_pallet`, and other substrate-specific fields. Incremental processing ensures only new or recently modified events are processed, with a configurable lookback period for data consistency.
- **Key fields**: `timestamp` (daily truncated), `block_number`, `event_data` (structured JSON), `event_method`, `event_pallet`

### Component B: Block reward filtering and extraction
- **Purpose**: Identify and extract reward amounts from specific staking pool reward events
- **Logic**: Events are filtered to include only those from the `phalaStakePoolv2` pallet with the `RewardReceived` method, which represents reward distributions to network participants. The reward amount is extracted from the second element of the structured `event_data` JSON array and converted to a numeric value. This filtering ensures only legitimate reward events are included in the calculation.
- **Key fields**: `amount` (extracted from event data), `timestamp`, `block_number`, `event_index`

### Component C: Daily aggregation and unit conversion
- **Purpose**: Aggregate daily reward amounts and convert from native units to standard PHA tokens
- **Logic**: Reward amounts are grouped by daily timestamp and summed to calculate total daily rewards. The aggregated amounts are converted from microPHA units to PHA tokens by dividing by 10^12, which accounts for Phala Network's native token decimal precision. This produces daily totals in standard PHA token units.
- **Key fields**: `token_incentives` (daily aggregated amount in PHA), `daily_timestamp`

### Final aggregation
- **Combining components**: Daily PHA reward amounts are processed through USD conversion using CoinGecko PHA price feeds to produce daily USD values
- **Currency conversion**: End-of-day PHA/USD prices from CoinGecko are applied to convert daily PHA amounts to USD equivalents
- **Time aggregation**: Data is maintained at daily grain with timestamps representing day boundaries
- **Final calculation**: The final metric represents the daily USD value of all block rewards distributed by the Phala Network, classified as 'Block rewards' reward type within the 'blockchains_l1' market sector. Missing days are filled with zero values to maintain a continuous time series, and chain availability filters ensure data quality standards are met.

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

Value of native tokens distributed as incentives.

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