# Polkadot Relay Chain Treasury net flows Methodology

## 1. Overview

Treasury net flows measures the daily change in the total value of assets held by the Polkadot Treasury. This metric reflects the net result of inflows, such as slashed stakes and transaction fee portions, and outflows, such as treasury proposals and bounties. For Polkadot Relay Chain, this includes assets held directly on the relay chain as well as native and wrapped assets held on Polkadot AssetHub and HydraDX.

## 2. Data sources

- **Blockchain events**: Treasury balance records and account activity from Polkadot Relay Chain, Polkadot AssetHub, and HydraDX
- **External data**: End-of-day price feeds for native DOT and other treasury-held assets

## 3. Step-by-step calculation

### Component A: Polkadot Relay Chain balance tracking

- **Purpose**: Extract daily balances of native DOT held in the primary treasury account on the relay chain.
- **Logic**: Daily balance snapshots are retrieved from relay chain treasury balance records. The `free` balance is extracted for the designated treasury account. All amounts are normalized by decimal precision.
- **Key fields**: `block_timestamp` (timing), `free` (token quantity), `address` (account identification)

### Component B: Parachain treasury balance tracking

- **Purpose**: Capture treasury-controlled assets residing on Polkadot AssetHub and HydraDX.
- **Logic**: For Polkadot AssetHub, native and token balance records are parsed for specific treasury-controlled addresses. For HydraDX, `free` and `reserved` balances are extracted from liquidity pool and account balance tables for identified treasury addresses. Token identifiers for assets like USDt and USDC on Polkadot AssetHub are mapped to their corresponding identifiers on HydraDX to facilitate consistent pricing.
- **Key fields**: `token_id` (asset identification), `free` (available balance), `reserved` (locked balance), `address` (treasury account identification)

### Component C: USD conversion and net flow calculation

- **Purpose**: Normalize all balances to USD and calculate the daily net change in value.
- **Logic**: Daily aggregate balances from all chains are multiplied by their respective end-of-day price feeds. For assets on Polkadot AssetHub where direct price feeds are unavailable, prices are derived from HydraDX. The total treasury value is calculated as the sum of all USD-denominated balances across all chains. Treasury net flows are then derived by calculating the delta between the current day's total USD balance and the previous day's total USD balance.
- **Key fields**: `price_usd` (valuation), `timestamp` (daily boundaries)

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

Daily net flow into and out of treasury balances.

Treasury net flows

Blockchains (L1)

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 Relay Chain

Treasury net flows

Treasury net flows

Chain breakdown