Traders exchange funds through request for quotation system built on 0x protocol and aggregated AMMs. Tokenlon collects a trading fee (revenue) from trades.

Tokenlon is a non-custodial exchange protocol built on Ethereum. Tokenlon was founded by imToken team and launched in 2018.

LON tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Tokelon's investors include IDG Capital, Qiming Venture Partners, Breyer Capital, etc.

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Tokenlon

# Tokenlon Expenses Methodology

## 1. Overview

The Tokenlon expenses metric measures the total USD value of token incentives distributed by the Tokenlon protocol to users for liquidity mining and staking activities. This metric captures the protocol's operational expenses related to rewarding users who participate in the Tokenlon ecosystem through mining rewards and staking programs. The calculation aggregates daily incentive payments from multiple reward distribution contracts and converts them to USD values.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Ethereum event logs**: Parsed `Claimed` events from the MerkleRedeem contract and `RewardPaid` events from StakingRewards contracts on Ethereum
- **Token metadata**: LON token configuration including decimal places and contract address (`0x0000000000095413afc295d19edeb1ad7b71c952`)
- **External data**: End-of-day price feeds for USD conversion of LON token amounts
- **Account configuration**: Predefined list of incentive distribution contract addresses and their associated reward types

## 3. Step-by-step calculation

### Component A: Liquidity incentive event extraction

- **Purpose**: Extracts all token incentive distribution events from Tokenlon's reward contracts
- **Logic**: Identifies two types of incentive events on Ethereum. First, `Claimed` events from the MerkleRedeem contract which represent mining reward distributions, using the `balance` field for the token amount. Second, `RewardPaid` events from StakingRewards contracts which represent staking reward distributions, using the `reward` field for the token amount. Both event types are filtered to only include distributions of the LON token. The events are standardized with consistent business classification metadata including business line as "DEX Aggregator", market sector as "exchanges", and business segment as "dex_aggregator"
- **Key fields**: `block_timestamp` for timing, `account_address` for recipient, `amount` for token quantity (from either `balance` or `reward` fields), `token_address` for LON token identification

### Component B: Account dimension mapping

- **Purpose**: Maps incentive distribution contract addresses to human-readable account categories
- **Logic**: Maintains a hardcoded mapping of three Ethereum addresses used for incentive distribution. The address `0x0000000006a0403952389b70d8ee4e45479023db` is classified as "Mining Rewards", while addresses `0x9648b119f442a3a096c0d5a1f8a0215b46dbb547` and `0xb6bc1a713e4b11fa31480d31c825dcfd7e8fabfd` are both classified as "Staking Rewards". This dimension table ensures only legitimate incentive distribution accounts are included in the expense calculation
- **Key fields**: `account_address` for contract identification, `account_name` for reward type classification

### Component C: Token incentive aggregation

- **Purpose**: Combines incentive events with account classifications and performs daily aggregation
- **Logic**: Joins the liquidity incentive events with the account dimension table using the `account_address` field to filter events to only those from recognized incentive distribution accounts. Truncates timestamps to daily boundaries for aggregation. Preserves all relevant metadata including chain, business classification, version, and account details for proper categorization of expenses
- **Key fields**: `timestamp` (daily), `chain_id`, `token_address`, `amount` as `token_incentives`, `account_name` for expense categorization

### Final aggregation

- **Combining components**: The token incentive data flows through USD conversion and decimal correction using the `convert_to_usd_and_correct_decimals` macro, which applies end-of-day price feeds to convert LON token amounts to USD values and corrects for the token's decimal places
- **Currency conversion**: USD conversion uses end-of-day price feeds matched to the event timestamp, with proper decimal adjustment for the LON token's 18-decimal configuration
- **Time aggregation**: Daily aggregation is achieved by truncating block timestamps to day boundaries, with all incentive payments within a day summed together
- **Final calculation**: The final expenses metric is the daily sum of all USD-converted token incentive distributions from recognized Mining Rewards and Staking Rewards accounts, with the `token_incentives` field renamed to `expenses` for the final output. The calculation applies gap-filling logic to ensure consistent daily reporting with zero values for days with no incentive distributions

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

Total project operating and incentive expenses.

TokenlonLON

Expenses

Expenses

Competitive landscape

Chain breakdown