# Prime Staking Expenses Methodology

## 1. Overview

Expenses measures the total cost Prime Staking incurs to operate its business. For this product, expenses are comprised of token incentives distributed to participants as rewards for staking activity. These distributions represent the protocol's primary operating cost and are captured through on-chain reward payment events.

## 2. Data sources

- **Blockchain events**: `RewardPaid` events from `PrimeStakedXDC` contracts, covering the XDC Network
- **External data**: End-of-day price feeds for the native XDC asset

## 3. Step-by-step calculation

### Component A: Prime Staking incentive extraction

- **Purpose**: Capture the raw quantity of rewards distributed to Prime Staking participants
- **Logic**: `RewardPaid` events are parsed from `PrimeStakedXDC` contracts. The `reward` value is extracted from each event to identify the total amount of assets distributed as incentives.
- **Key fields**: `reward` (distribution quantity), `block_timestamp` (event timing)

### Component B: USD conversion and aggregation

- **Purpose**: Normalize incentive amounts by decimal precision and convert the values to USD
- **Logic**: Raw incentive amounts are normalized by decimal precision. These values are then multiplied by the end-of-day price feeds for the rewarded asset. Values are aggregated to a daily grain based on UTC day boundaries.
- **Key fields**: `reward`, `block_timestamp`

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

Total project operating and incentive expenses.

Expenses

Liquid staking

Prime Staking

Expenses

Expenses

Chain breakdown