Validators process & store the uploaded data and collect upload & storage fees from data uploaders (supply-side fees).

Swarm is a data storage network built on Gnosis. Swarm was founded by Viktor Tron, Jeffrey Wilcke and Daniel A. Nagy and launched in 2016.

BZZ tokenholders own and govern the protocol. They currently don’t take a cut of the fees paid by data uploaders.

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Swarm

# Swarm Token incentives Methodology

## 1. Overview

The Swarm token incentives metric measures the daily USD value of BZZ token rewards distributed through the Swarm network's redistribution mechanism. This metric quantifies the economic incentives provided to network participants who win redistribution rounds, helping track the protocol's reward distribution and economic activity. The calculation identifies qualifying reward transactions through Swarm's `WinnerSelected` events and measures the corresponding BZZ token transfers from the postage stamp contract.

## 2. Data sources

The calculation uses the following raw data sources:
- **Swarm redistribution events**: Parsed `WinnerSelected` events from the Swarm Redistribution contract on Gnosis chain that identify qualifying reward transactions
- **Gnosis token transfers**: Token transfer events from the Gnosis blockchain, specifically transfers originating from the postage stamp contract
- **Token metadata**: BZZ token contract information including decimal precision for proper amount calculations  
- **End-of-day price feeds**: Daily BZZ token prices for USD conversion

## 3. Step-by-step calculation

### Component A: Winner transaction identification
- **Purpose**: Identifies transactions that contain valid redistribution winners eligible for rewards
- **Logic**: Extracts all `WinnerSelected` events emitted by the Swarm Redistribution contract on Gnosis chain. These events mark successful redistribution rounds where participants have won rewards. Each event is linked to a specific `transaction_hash` that becomes the key for identifying reward transfers
- **Key fields**: `transaction_hash` as the unique identifier for winner transactions

### Component B: Reward transfer calculation  
- **Purpose**: Calculates the actual BZZ token reward amounts transferred to winners
- **Logic**: Retrieves all token transfer events from the Gnosis blockchain where the `from_address` matches the postage stamp contract address (`0x30d155478ef27ab32a1d578be7b84bc5988af381`). These transfers represent BZZ tokens being distributed as rewards. The transfers are then joined with the winner transactions using `transaction_hash` to isolate only transfers that occurred in winning redistribution transactions. This ensures only legitimate reward distributions are captured, filtering out other types of transfers from the postage stamp contract
- **Key fields**: `value` representing the raw BZZ token amount, `transaction_hash` for joining with winner data, `block_timestamp` for daily aggregation, and `token_address` pointing to the Ethereum BZZ token contract

### Component C: USD conversion and standardization
- **Purpose**: Converts raw BZZ token amounts to standardized USD values
- **Logic**: Applies decimal correction to convert raw BZZ token amounts to their proper decimal representation (accounting for the token's 18 decimal places). Then converts the corrected amounts to USD using end-of-day BZZ token prices. The conversion uses the daily closing price to ensure consistent valuation across all transfers within the same day
- **Key fields**: `token_incentives` representing the USD value of rewards, `timestamp` truncated to daily boundaries

### Final aggregation
- **Combining components**: All reward transfers are aggregated by day, summing the USD values of all BZZ rewards distributed on each date
- **Currency conversion**: BZZ token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to handle the token's 18 decimal precision
- **Time aggregation**: Data is grouped by daily timestamps (truncated to day boundaries) to create consistent daily metrics
- **Final calculation**: The daily token incentives value equals the sum of all USD-converted BZZ reward transfers that occurred in winning redistribution transactions on that day, with zero-filling applied for days with no reward activity to maintain continuous time series data

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

Value of native tokens distributed as incentives.

SwarmBZZ

Token incentives

Token incentives

Competitive landscape