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Reserve

# Reserve Token incentives Methodology

## 1. Overview

Reserve Token Incentives measures the total USD value of tokens distributed daily by the Reserve protocol as incentive payments to users and ecosystem participants. This metric tracks outbound token transfers from Reserve's designated treasury wallet, converting all token distributions to USD values to provide a standardized measure of protocol spending on token-based incentives. The metric answers the business question: "How much value does Reserve distribute daily through token incentives?"

## 2. Data sources

- **Ethereum token transfer events**: Parsed ERC20 `Transfer` events from Ethereum mainnet, specifically tracking outbound transfers from Reserve's treasury cold wallet
- **End-of-day token price feeds**: Token pricing data used for USD conversion of distributed tokens
- **Token metadata**: Token decimal specifications required for accurate amount calculations and currency conversion

## 3. Step-by-step calculation

### Component A: Treasury withdrawal identification
- **Purpose**: Identifies all token distributions from Reserve's treasury wallet as potential incentive payments
- **Logic**: Filters Ethereum `Transfer` events to capture only outbound transfers originating from Reserve's designated treasury cold wallet address `0x0774df07205a5e9261771b19afa62b6e757f7ef8`. All tokens transferred from this specific wallet are classified as token incentives under the 'Reserve Yield' product category. The logic captures transaction details including `block_timestamp`, `transaction_hash`, `log_index`, `token_address`, `from_address`, `to_address`, and raw transfer `value`
- **Key fields**: `block_timestamp` for timing, `token_address` for token identification, `value` for transfer amounts, and wallet addresses for validation

### Component B: Daily aggregation and timestamp processing  
- **Purpose**: Converts transaction-level data to daily metrics with consistent time boundaries
- **Logic**: Truncates `block_timestamp` values to day-level boundaries using daily timestamp truncation, ensuring all transactions within a 24-hour period are grouped together. Sets `timestamp_grain` to 'day' for time series consistency and maintains `chain_id`, `product_id`, and `token_address` for proper grouping
- **Key fields**: `timestamp` (truncated to day), `timestamp_grain`, `chain_id`, `product_id`, `token_address`, and `amount` (renamed from value)

### Component C: USD conversion and decimal correction
- **Purpose**: Standardizes token amounts by correcting decimal places and converting to USD values
- **Logic**: Applies token-specific decimal corrections to raw transfer amounts, accounting for each token's decimal specification (e.g., adjusting 18-decimal tokens like ETH). Converts corrected token amounts to USD using end-of-day token prices, ensuring consistent valuation timing across all token types. This process handles multiple token types that may be distributed as incentives
- **Key fields**: `token_incentives` (USD-converted and decimal-corrected amounts)

### Final aggregation
- **Combining components**: Sums all USD-converted token incentive amounts by day, product, and chain to create total daily incentive values
- **Currency conversion**: Uses end-of-day token prices to ensure consistent USD conversion timing across all distributed tokens
- **Time aggregation**: Groups transactions by daily boundaries, with all activity within each 24-hour period contributing to that day's total
- **Final calculation**: The final metric value represents the total USD value of all tokens distributed from Reserve's treasury wallet on each day, with schema validation and gap-filling logic applied to ensure complete time series coverage with zero values for days without activity

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

Value of native tokens distributed as incentives.

ReserveRSR

Token incentives

Token incentives

Competitive landscape

Chain breakdown