# Polymarket International Token incentives Methodology

## 1. Overview

Token incentives measures the value of native or designated reward assets distributed to users of Polymarket International. These distributions are primarily used to incentivize liquidity provision and asset holding on the platform. Both liquidity rewards and holding rewards paid out in USDC and pUSD are captured by the metric. By tracking these incentives, the cost of user acquisition and liquidity maintenance can be analyzed.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from Polymarket International reward distribution contracts, covering Polygon
- **External data**: End-of-day price feeds and asset metadata for reward assets (USDC and pUSD)

## 3. Step-by-step calculation

### Component A: Polymarket International reward transfer extraction

- **Purpose**: Identify and extract reward distributions from designated distributor addresses
- **Logic**: ERC-20 token transfers are filtered where the sender matches specific reward distribution addresses associated with liquidity rewards and holding rewards. Transfers of USDC and pUSD are captured. Transfers where the recipient is the protocol wallet are excluded to prevent counting returned unspent balances.
- **Key fields**: `from_address` (distributor identification), `to_address` (recipient identification), `token_address` (asset identification), `value` (transfer amount)

### Component B: Decimal normalization and USD conversion

- **Purpose**: Normalize reward amounts by decimal precision and convert to USD
- **Logic**: Extracted transfer amounts are divided by the asset's decimal precision using asset metadata. The normalized amounts are then multiplied by the end-of-day price of the respective asset (USDC or pUSD) to determine the USD value.
- **Key fields**: `amount` (normalized quantity), `price_usd` (asset price)

### Component C: Daily aggregation and zero-filling

- **Purpose**: Aggregate reward values to a daily grain and ensure continuous time-series data
- **Logic**: The USD-denominated reward values are aggregated by day. A zero-filling strategy is applied to ensure that days with no reward distributions are populated with a value of zero, maintaining a continuous daily time series.
- **Key fields**: `timestamp` (daily grain), `token_incentives` (aggregated USD value)

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

Value of native tokens distributed as incentives.

Token incentives

Prediction markets

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket International

Token incentives

Token incentives

Chain breakdown