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

Ronin is a smart contract platform for decentralized applications (a blockchain). Ronin was founded by Sky Mavis and launched in 2021.

RON holders own and govern the protocol. They currently don’t take a cut of the total transaction fees paid by users (revenue). Sky Mavis' investors include a16z, Binance, Animoca Brands, etc.

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Ronin

# Ronin Expenses Methodology

## 1. Overview

Ronin expenses represents the total daily cost incurred by the Ronin protocol in distributing RON token rewards to various ecosystem participants. This metric captures the protocol's operational expenses in the form of token incentives paid to stakers, validators, and bridge operators. The calculation aggregates all RON token distributions from blockchain reward events and converts them to USD values to provide a standardized measure of protocol expenses.

## 2. Data sources

- **Ronin blockchain event logs**: Four types of reward distribution events capturing RON token incentives
  - `ValidatorSet_StakingRewardDistributed_event`: RON rewards distributed to RON stakers
  - `ValidatorSet_MiningRewardDistributed_event`: RON rewards distributed to RON validators  
  - `ValidatorSet_BridgeOperatorRewardDistributed_event`: RON rewards distributed to Ronin bridge operators (discontinued)
  - `BridgeReward_BridgeRewardScattered_event`: RON rewards distributed to Ronin bridge operators
- **End-of-day token price feeds**: RON token price data for USD conversion
- **RON token metadata**: Token contract details including decimal places for amount normalization

## 3. Step-by-step calculation

### Component A: Block reward extraction

- **Purpose**: Extract all RON token reward distributions from Ronin blockchain events
- **Logic**: Query four different reward distribution event types from Ronin blockchain logs. Each event contains the reward amount parameter (`totalAmount` for staking rewards, `amount` for other reward types), recipient address, block timestamp, and transaction details. The RON token address `0xe514d9deb7966c8be0ca922de8a064264ea6bcd4` is used as the consistent token identifier across all reward types. Events are filtered to distinct records and standardized with consistent metadata including chain identifier, business line classification as 'blockchain', and version tracking.
- **Key fields**: Block timestamp for daily aggregation, recipient `address`, reward `amount` parameters varying by event type, `transaction_hash` and `log_index` for unique identification

### Component B: Daily aggregation and USD conversion

- **Purpose**: Aggregate daily token incentive amounts and convert to USD values
- **Logic**: Truncate block timestamps to daily boundaries and aggregate all reward amounts by day. The raw token amounts are processed through decimal correction to handle RON token's decimal places properly. End-of-day price feeds are used to convert RON token amounts to USD values. This creates a daily time series of total token incentives distributed by the protocol.
- **Key fields**: Daily `timestamp`, aggregated `token_incentives` amount, `chain_id` for Ronin, standardized business classification fields

### Final aggregation

- **Combining components**: All reward event types are unioned together and aggregated by day to create a comprehensive view of daily protocol reward distributions
- **Currency conversion**: RON token amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied to handle token precision
- **Time aggregation**: Data is aggregated to daily granularity using timestamp truncation, with any missing dates filled with zero values to ensure complete time series
- **Final calculation**: The total daily token incentives amount is renamed to `expenses` to reflect the business perspective that these reward distributions represent operational costs to the protocol. The final metric represents the total USD value of RON tokens distributed as rewards each day.

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

Total project operating and incentive expenses.

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Expenses

Expenses

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