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

Tezos is a smart contract platform for decentralized applications (a blockchain). Tezos was founded by Arthur Breitman & Kathleen Breitman etc. and launched in 2018.

XTZ holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

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Blockchains (L1)

Tezos

# Tezos Token incentives Methodology

## 1. Overview

Token incentives measures the daily amount of XTZ tokens distributed as rewards or incentives on the Tezos blockchain. This metric tracks the native token emissions used to incentivize network participants, validators, or protocol users. The calculation converts raw cumulative rewards data into daily incremental values and standardizes the output in USD terms for cross-chain comparability.

## 2. Data sources

The calculation relies on:
- **Tezos rewards data**: Raw cumulative XTZ rewards data collected via blockchain scraping, containing timestamp and total rewards amounts in native XTZ decimals
- **External price data**: End-of-day CoinGecko price feeds for XTZ token to enable USD conversion

## 3. Step-by-step calculation

### Component A: Raw rewards processing
- **Purpose**: Extracts and normalizes raw XTZ rewards data from the Tezos blockchain
- **Logic**: The system retrieves cumulative rewards data with timestamps and converts the raw amounts from native 6-decimal XTZ format to human-readable token amounts by dividing by 10^6. Each record includes chain identifier (`tezos`), token symbol (`XTZ`), contract name (`XTZ`), and CoinGecko identifier (`tezos`) for downstream processing.
- **Key fields**: Daily timestamp (`daily_timestamp`), normalized XTZ amount (`amount`), chain (`chain`), token metadata (`token_symbol`, `coingecko_id`)

### Component B: Cumulative to incremental conversion
- **Purpose**: Converts cumulative rewards totals into daily incremental reward amounts
- **Logic**: Uses a window function with LAG to calculate the day-over-day difference in cumulative rewards. For the first record in the time series, the full cumulative amount is used as the incremental value. For subsequent days, the calculation subtracts the previous day's cumulative total from the current day's total to determine the daily increment.
- **Key fields**: Daily incremental reward amount (`amount`), calculated as current minus previous cumulative total

### Component C: USD conversion and standardization
- **Purpose**: Converts XTZ amounts to USD and applies Token Terminal's standard metric formatting
- **Logic**: The `convert_to_usd_cg` macro joins the XTZ amounts with end-of-day CoinGecko price data to calculate USD equivalent values. The system then applies business classification metadata including business line (`Blockchain`), market sector (`blockchains_l1`), and business segment (`blockchain`) identifiers.
- **Key fields**: USD-converted token incentives amount (`token_incentives`), business metadata fields, timestamp grain (`day`)

### Final aggregation
- **Combining components**: The components flow sequentially from raw data processing through incremental calculation to USD conversion and standardization
- **Currency conversion**: XTZ amounts are converted to USD using end-of-day CoinGecko price feeds matched by date and CoinGecko token identifier
- **Time aggregation**: Data is aggregated at daily boundaries using the daily timestamp from the source data
- **Final calculation**: The final metric represents the daily USD value of XTZ token incentives distributed on the Tezos blockchain, with the `finalize_metric_token_incentives` macro ensuring schema compliance, filling gaps with zeros for missing days, and applying chain availability filters

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

Value of native tokens distributed as incentives.

TezosXTZ

Token incentives

Token incentives

Competitive landscape