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

Terra is a smart contract platform for decentralized applications (a blockchain). Terra was founded by Daniel Shin and Do Kwon and launched in 2018. Terra Classic's stablecoin UST collapsed in 2022 due to a cryptocurrency equivalent of a bank run. Terra was forked shortly after, leading to the current Terra and its predecessor Terra Classic. This dashboard tracks the new Terra blockchain.

LUNA holders own and govern the protocol. They take a cut of the total transaction fees paid by users (revenue) that is then rewarded to contract owners (cost of revenue). Terra’s investors include Coinbase Ventures, Galaxy Digital, Pantera Capital, etc.

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Terra

# Terra Expenses Methodology

## 1. Overview

Terra expenses represents the total daily operational costs incurred by the Terra blockchain protocol, measured in USD. This metric combines two key expense categories: cost of revenue (representing fees paid to validators and developers) and token incentives (representing Luna token rewards distributed to participants). The metric helps quantify Terra's operational expenditure and provides insight into the protocol's cost structure for maintaining network operations and incentivizing participation.

## 2. Data sources

The calculation relies on three primary data sources:

- **Terra blockchain event attributes**: Parsed blockchain events from Terra's event log system containing fee payout information and reward distribution records
- **Transaction data**: Terra blockchain transaction logs providing timestamps and transaction context for linking events to specific blocks and time periods  
- **External data**: End-of-day token price feeds from CoinGecko API for converting Terra Luna (LUNA) and other supported tokens to USD values

## 3. Step-by-step calculation

### Component A: Cost of revenue calculation
- **Purpose**: Calculates the daily cost of revenue by treating all Terra protocol revenue as an operational expense
- **Logic**: Sources fee payout data from Terra blockchain event attributes, specifically filtering for `payout_feeshare` and `juno.feeshare.v1.FeePayoutEvent` event types. Extracts JSON-formatted payout structures and flattens nested fee arrays to access individual fee amounts and denominations. Maps token denominations to CoinGecko identifiers (`uluna` maps to `terra-luna-2`, `FDB` maps to `usd-coin`, null values default to `usd-coin`). Scales raw amounts by dividing by 1e6 to adjust for Terra's 6-decimal token precision. Groups transactions by daily timestamps and converts fee amounts to USD using end-of-day CoinGecko price feeds. Treats the resulting USD revenue values directly as cost of revenue using a 1:1 mapping
- **Key fields**: `block_timestamp` for time grouping, `event_type` for filtering fee events, `attribute_value` containing JSON fee structures, `amount` and `denom` fields from parsed payouts, `coingecko_id` for price conversion

### Component B: Token incentives calculation  
- **Purpose**: Calculates the daily USD value of Luna token rewards distributed as network incentives
- **Logic**: Filters Terra blockchain event attributes for `rewards` event types where the `attribute_key` equals `amount` and the `attribute_value` ends with `uluna` denomination. Extracts the numeric portion of the reward amount by removing the `uluna` suffix using string manipulation. Converts raw Luna amounts to proper decimal values by dividing by 1e6 to account for Terra's microunit precision (1 LUNA = 1,000,000 uluna). Groups reward transactions by daily timestamps and sums total Luna rewards per day. Converts daily Luna totals to USD using end-of-day CoinGecko price feeds for the `terra-luna-2` token identifier
- **Key fields**: `block_timestamp` for daily grouping, `event_type` filtered to `rewards`, `attribute_key` filtered to `amount`, `attribute_value` containing Luna amounts with `uluna` suffix, `token_incentives` for the calculated daily reward totals

### Final aggregation
- **Combining components**: Unions the cost of revenue and token incentives components using a UNION ALL operation, treating both as expense line items with consistent schema including `timestamp`, `timestamp_grain`, `chain_id`, `product_id`, and `expenses` amount fields
- **Currency conversion**: All token amounts are converted to USD using end-of-day CoinGecko price feeds matched by date, with Luna using the `terra-luna-2` identifier and fee tokens mapped to their respective CoinGecko IDs  
- **Time aggregation**: Data is grouped by daily boundaries using timestamp truncation to day level, with `timestamp_grain` set to 'day' for all records
- **Final calculation**: Sums the unioned cost of revenue and token incentives to produce total daily expenses in USD, applying a fill-zeros strategy to ensure complete daily time series coverage without gaps, and standardizing output through the finalize metric macro for consistent schema and metadata

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

Total project operating and incentive expenses.

TerraLUNA

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Expenses

Expenses

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