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 Token incentives Methodology

## 1. Overview

Token incentives measures the total value of LON tokens distributed as incentives by the Tokenlon protocol. This metric captures both mining rewards (distributed through merkle proof claims) and staking rewards (paid to stakers) to quantify the protocol's token-based incentive spending. The calculation aggregates daily incentive payments from specific reward distribution contracts and converts them to USD values to provide a standardized measure of the protocol's token incentive costs.

## 2. Data sources

- **Ethereum event logs**: Parsed `MerkleRedeem_Claimed` and `StakingRewards_RewardPaid` events from Tokenlon v1 smart contracts
- **Token metadata**: LON token contract address and decimal specifications
- **End-of-day price feeds**: LON token price data for USD conversion
- **Account dimensions**: Predefined mapping of reward distribution contract addresses to human-readable names

## 3. Step-by-step calculation

### Component A: Incentive payment event extraction
- **Purpose**: Extracts all LON token incentive payment events from Tokenlon's reward distribution contracts
- **Logic**: Parses two types of Ethereum events - `MerkleRedeem_Claimed` events that represent mining rewards claimed through merkle proofs, and `StakingRewards_RewardPaid` events that represent staking rewards distributed to participants. Filters all events to only include those involving the LON token address `0x0000000000095413afc295d19edeb1ad7b71c952`. Extracts key transaction details including `block_timestamp`, `transaction_hash`, `log_index`, and reward distribution contract `address`
- **Key fields**: `balance` and `reward` amounts from the respective events are standardized as `amount`, contract addresses become `account_address`, and all events are tagged with chain identifier, business classification metadata, and version information

### Component B: Account dimension mapping
- **Purpose**: Provides human-readable names for the reward distribution contract addresses
- **Logic**: Maps three specific Ethereum addresses to descriptive account names - `0x0000000006a0403952389b70d8ee4e45479023db` as Mining Rewards, and two other addresses (`0x9648b119f442a3a096c0d5a1f8a0215b46dbb547` and `0xb6bc1a713e4b11fa31480d31c825dcfd7e8fabfd`) as Staking Rewards accounts
- **Key fields**: Creates `account_name` field with descriptive labels for each reward distribution contract

### Component C: Time aggregation and joining
- **Purpose**: Combines incentive events with account metadata and aggregates to daily time boundaries
- **Logic**: Joins the incentive payment events with account dimension data using `account_address` as the key. Truncates `block_timestamp` values to daily boundaries using timestamp truncation to create consistent daily aggregation periods. Preserves all transaction-level detail while establishing daily time boundaries
- **Key fields**: Creates daily `timestamp` field, retains `token_incentives` amounts, and includes both `contract_name` and `account_name` for reporting clarity

### Final aggregation
- **Combining components**: The joined dataset contains all LON token incentive payments with descriptive account names and daily timestamp boundaries
- **Currency conversion**: Applies decimal correction for LON token (adjusting for token-specific decimal places) and converts amounts to USD using end-of-day price feeds through the conversion macro
- **Time aggregation**: Data is aggregated to daily grain with timestamp truncation ensuring consistent daily boundaries regardless of block timing
- **Final calculation**: The final metric represents the total USD value of LON token incentives distributed per day across all reward distribution contracts, with missing days filled with zero values to maintain complete time series continuity

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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