# Constant Product xShadow supply Methodology

## 1. Overview

xShadow supply is measured as the total circulating quantity of xShadow assets within the Constant Product product. This metric represents the aggregate volume of all xShadow tokens currently in existence on the blockchain. The supply is tracked by monitoring the net difference between minted and burned assets over time to provide an accurate representation of the total token inventory.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events for the xShadow asset, covering Sonic
- **External data**: asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: xShadow issuance tracking

- **Purpose**: To identify and quantify the creation of new xShadow assets
- **Logic**: ERC-20 `Transfer` events for the xShadow token address are parsed from the blockchain. Transactions where the sender address is the null address (0x00...000) are identified as minting events. These amounts are captured as positive additions to the total supply.
- **Key fields**: `block_timestamp` (timing), `amount` (quantity of assets issued), `from_address` (used to identify issuance)

### Component B: xShadow redemption tracking

- **Purpose**: To identify and quantify the destruction of xShadow assets
- **Logic**: ERC-20 `Transfer` events for the xShadow token address are monitored for redemption activity. Transactions where the recipient address is the null address are identified as burning events. These quantities are captured as negative values to represent removals from the total supply.
- **Key fields**: `block_timestamp` (timing), `amount` (quantity of assets destroyed), `to_address` (used to identify redemptions)

### Component C: Supply aggregation and normalization

- **Purpose**: To calculate the cumulative outstanding supply and standardize the units
- **Logic**: Daily net changes are calculated by aggregating the issuance and redemption values identified in previous components. A cumulative sum is applied to these daily deltas across the time series to determine the total outstanding supply for each timestamp. Missing daily values are filled forward from the most recent recorded balance to ensure data continuity. All values are normalized by decimal precision using asset metadata.
- **Key fields**: `timestamp` (daily intervals), `outstanding_delta` (net daily change), `outstanding_supply` (cumulative total)

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

xShadow supply