# Polkadot AssetHub Token incentives Methodology

## 1. Overview

Token incentives measures the value of native DOT assets distributed to validators and nominators on Polkadot AssetHub. These distributions serve as compensation for network security and are analogous to stock-based compensation in traditional finance. Following the migration of staking functions from the Polkadot Relay Chain, these rewards are captured on the system parachain level. Detailed cross-product aggregation logic is maintained in the project-level methodology for Polkadot.

## 2. Data sources

- **Blockchain events**: `Rewarded` events from `staking` pallets on Polkadot AssetHub
- **External data**: End-of-day price feeds for the native DOT asset

## 3. Step-by-step calculation

### Component A: Polkadot AssetHub staking reward extraction

- **Purpose**: Capture the distribution of native assets to participants in the staking system.
- **Logic**: `Rewarded` events are parsed from `staking` pallets on Polkadot AssetHub. The reward amount is extracted from the event data and normalized by the decimal precision of the native DOT asset. This extraction logic is applied to events occurring after the migration of staking operations to Polkadot AssetHub.
- **Key fields**: `amount` (reward quantity), `block_timestamp` (timing)

### Component B: USD conversion and aggregation

- **Purpose**: Convert native reward values into a standardized USD metric for reporting.
- **Logic**: Daily reward totals are aggregated using UTC day boundaries. These totals are multiplied by the end-of-day USD price of the native asset. The metric is finalized by applying a zero-fill strategy to ensure data continuity for all days within the reporting period.

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

Value of native tokens distributed as incentives.

Token incentives

Blockchains (L2)

Network participants process transactions and receive fees from users (supply-side fees).

Polkadot is a security & interoperability platform for blockchains and applications. Polkadot was founded by Gavin Wood and launched in 2020.

DOT holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Polkadot’s investors include Polychain, IOSG Ventures, Hashkey, etc.

Polkadot AssetHub

Token incentives

Token incentives

Chain breakdown