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 Token incentives Methodology

## 1. Overview

Token incentives represents the daily USD value of LUNA tokens distributed as rewards on the Terra blockchain. This metric captures the monetary value of incentives paid to validators and delegators for securing and operating the network. The calculation aggregates all reward distribution events from Terra blockchain logs, converts token amounts to standard units, and applies USD pricing to provide a daily incentive value in dollars.

## 2. Data sources

- **Terra blockchain event logs**: Event attributes from Terra blockchain containing reward distribution data, specifically events with type `rewards` that include LUNA token amounts
- **End-of-day token price feeds**: CoinGecko price data for Terra LUNA (identified as `terra-luna-2`) used for USD conversion
- **Token metadata**: Terra LUNA token specifications including decimal precision (6 decimals) for proper unit conversion

## 3. Step-by-step calculation

### Component A: Raw incentive extraction
- **Purpose**: Extracts LUNA token reward distributions from Terra blockchain events
- **Logic**: The system filters Terra blockchain event attributes to identify reward distribution events. It specifically looks for events with `event_type` equal to `rewards`, `attribute_key` equal to `amount`, and `attribute_value` ending with `uluna`. These events represent LUNA tokens being distributed as staking rewards and validator incentives. The token amount is extracted by removing the `uluna` suffix from the `attribute_value` field.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for transaction identification, `attribute_value` containing the raw LUNA amount with `uluna` denomination

### Component B: Daily aggregation and unit conversion
- **Purpose**: Converts raw blockchain amounts to human-readable tokens and aggregates by day
- **Logic**: Raw token amounts are converted from Terra's native blockchain units (micro-LUNA) to standard LUNA tokens by dividing by 10^6, reflecting Terra's 6-decimal precision. All incentive distributions within each day are summed together to create daily totals. The data is enriched with standard metadata including chain identifier (`terra`), business classification (`Blockchain` business line, `blockchains_l1` market sector), and CoinGecko token identifier (`terra-luna-2`).
- **Key fields**: `daily_timestamp` for day boundaries, `token_incentives` containing the daily LUNA total, `coingecko_id` for price lookup

### Component C: USD conversion
- **Purpose**: Converts daily LUNA incentive totals to USD values
- **Logic**: The system applies end-of-day CoinGecko price feeds for Terra LUNA using the `terra-luna-2` identifier. Each day's total LUNA incentives are multiplied by the corresponding end-of-day USD price to calculate the dollar value of incentives distributed that day.
- **Key fields**: `token_incentives` now containing USD values instead of LUNA amounts

### Final aggregation
- **Combining components**: The daily USD incentive values flow directly from the conversion step without additional combining since all processing is already aggregated by day
- **Currency conversion**: USD conversion uses end-of-day CoinGecko prices for Terra LUNA, applied to each day's total LUNA incentive amount
- **Time aggregation**: Data is aggregated to daily boundaries using Terra blockchain timestamps, with all incentive distributions within a day summed together
- **Final calculation**: The final metric value represents the total USD value of LUNA tokens distributed as rewards and incentives on the Terra blockchain each day, calculated as the sum of all daily reward distributions multiplied by the end-of-day LUNA/USD price. Missing dates are filled with zero values to maintain a continuous time series, and results are filtered to only include periods when Terra blockchain data is available.

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

Value of native tokens distributed as incentives.

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Token incentives

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