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Sonic

# Sonic Earnings Methodology

## 1. Overview

Sonic earnings represents the protocol's net profit calculated as total revenue minus total expenses. This metric measures the financial performance of the Sonic blockchain by tracking gas fee revenue earned from transaction processing and subtracting token incentive expenses paid through the feeM (fee monetization) program. The calculation follows standard financial accounting principles where earnings equal revenue minus expenses.

## 2. Data sources

The calculation relies on several raw data sources from the Sonic blockchain ecosystem:
- **Sonic transaction records**: Complete transaction data including gas usage, gas prices, sender/receiver addresses, and execution details
- **Smart contract event logs**: Parsed `GasMonetization_RewardClaimCompleted` events from Sonic's fee monetization contract that track token incentive payouts
- **End-of-day token price feeds**: Daily closing prices for Sonic (S) tokens to enable USD conversion
- **Token metadata**: Contract addresses and decimal precision information for Sonic's native token

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate protocol revenue from transaction gas fees
- **Logic**: Extract all Sonic blockchain transactions and calculate daily gas fee totals. For each transaction, multiply the `gas_used` by the `effective_gas_price` to get the total gas fee paid. Aggregate these amounts by day to get total daily gas fees. Apply a 90% revenue split factor, meaning the protocol retains 90% of collected gas fees as revenue (with 10% allocated elsewhere). Convert the resulting revenue amounts to USD using end-of-day price feeds for the Sonic token.
- **Key fields**: `gas_used` (gas consumed by transaction), `effective_gas_price` (gas price in wei), `block_timestamp` (for daily aggregation), `fee_amount` (calculated gas fee total)

### Component B: Expenses calculation  
- **Purpose**: Track token incentive expenses from the feeM program
- **Logic**: Monitor `GasMonetization_RewardClaimCompleted` events emitted by Sonic's gas monetization smart contract. These events occur when projects claim their share of gas fee rewards through the feeM program. Extract the `amount` field from each event, which represents the token reward amount in wei. Convert from wei to standard Sonic token units by dividing by 1e18. Aggregate claim amounts by day and convert to USD using end-of-day price feeds.
- **Key fields**: `amount` (reward amount in wei), `projectId` (claiming project identifier), `epochNumber` (reward epoch), `block_timestamp` (for daily aggregation)

### Final aggregation
- **Combining components**: The earnings calculation uses the `calculate_earnings` macro which automatically subtracts total daily expenses from total daily revenue for each day
- **Currency conversion**: Both revenue and expense components are converted to USD using end-of-day price feeds for the Sonic token before the final calculation
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Daily earnings equals daily revenue (90% of gas fees in USD) minus daily expenses (feeM token incentive payouts in USD). The finalization process ensures consistent schema formatting and fills any missing days with zero values to maintain complete time series data.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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