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Blockchains (L1)

Sonic

# Sonic Expenses Methodology

## 1. Overview

The Sonic expenses metric measures the total daily value of token incentives paid out by the Sonic protocol through its feeM (fee monetization) reward system. This metric quantifies the protocol's operational costs in terms of token rewards distributed to participants, providing insight into the protocol's incentive spending and reward distribution patterns.

## 2. Data sources

- **Blockchain events**: Parsed Sonic blockchain `GasMonetization_RewardClaimCompleted` event logs that capture when feeM rewards are claimed by participants
- **Token metadata**: Sonic native token information including the token contract address and decimal configuration
- **External data**: End-of-day price feeds for converting Sonic token amounts to USD values

## 3. Step-by-step calculation

### Component A: feeM reward claims processing
- **Purpose**: Extract and process raw feeM reward claim events from the Sonic blockchain
- **Logic**: The calculation reads parsed `GasMonetization_RewardClaimCompleted` event logs from the Sonic blockchain, casting and standardizing key fields including `block_timestamp`, `block_number`, `transaction_hash`, `log_index`, `address`, and the reward `amount`. The events contain `projectId` and `epochNumber` fields that identify the specific feeM project and epoch for each claim. The raw `amount` field represents the reward value in wei (the smallest unit of Sonic tokens).
- **Key fields**: `block_timestamp` for timing, `amount` for the reward value in wei, `feem_project_id` and `feem_epoch_number` for categorization

### Component B: Daily aggregation and token conversion
- **Purpose**: Convert wei amounts to Sonic tokens and aggregate claims by day
- **Logic**: The raw reward amounts are converted from wei to Sonic tokens by dividing by 1e18 (since 1 Sonic token = 10^18 wei). The data is grouped by day using timestamp truncation to daily boundaries. All claims within each day are summed to calculate the total daily token incentives. Each record is tagged with metadata including the chain identifier as 'sonic', product identifier as 'sonic', and the Sonic native token contract address '0x039e2fb66102314ce7b64ce5ce3e5183bc94ad38'.
- **Key fields**: `timestamp` (daily), `token_incentives` (daily sum in Sonic tokens), `token_address` (Sonic native token contract)

### Component C: USD conversion
- **Purpose**: Convert daily Sonic token amounts to USD values using market prices
- **Logic**: The daily token incentive amounts are converted to USD using end-of-day price feeds through the convert_to_usd_and_correct_decimals macro. The conversion uses the Sonic token's market price and does not apply additional decimal corrections since the amounts are already properly scaled from the wei conversion step.
- **Key fields**: `token_incentives` converted to USD values based on daily market prices

### Final aggregation
- **Combining components**: The USD-converted token incentives are processed through the finalize_metric_token_incentives macro which standardizes the data schema, validates identifiers, and ensures complete daily coverage by filling gaps with zero values where no claims occurred
- **Currency conversion**: All final values are expressed in USD using end-of-day exchange rates for the Sonic token
- **Time aggregation**: Data is aggregated to daily boundaries with timestamp truncation, ensuring all claims within a 24-hour period are summed together
- **Final calculation**: The token incentives values are renamed to expenses in the final metric, representing the total daily USD value of feeM rewards paid out by the Sonic protocol. Chain availability filters are applied to ensure data quality and completeness.

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

Total project operating and incentive expenses.

SonicS

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Expenses

Expenses

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