Toucan receives fees when liquid carbon reference tokens are redeemed for carbon credits and when off-chain carbon credits are bridged on-chain (revenue).

Toucan is an infrastructure protocol that bundles illiquid carbon credits to liquid carbon reference tokens, and bridges off-chain carbon credits on-chain. Toucan is currently built on Polygon and was founded by Raphaël Haupt in 2020.

Toucan team & investors own and govern the protocol. Toucan’s investors include USV, Earthshot Ventures, etc.

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Infrastructure

Toucan Protocol

# Toucan Protocol Expenses Methodology

## 1. Overview

The Toucan protocol expenses metric tracks token-based incentive payments made by the Toucan protocol. Currently, Toucan does not distribute token incentives, so this metric consistently shows zero values. The calculation maintains the same time series structure as the protocol's revenue and fee metrics, providing a complete financial picture where expenses are explicitly tracked as zero rather than omitted.

## 2. Data sources

The calculation utilizes the following data sources:
- **Blockchain transfer events**: Parsed `Transfer` events from Polygon and Celo blockchains, specifically tracking transfers to Toucan protocol addresses
- **Token metadata**: Token contract information including decimal places for amount normalization
- **End-of-day price feeds**: Token price data for USD conversion
- **Protocol configuration**: Hardcoded list of Toucan ecosystem fund addresses and retirement pool addresses across supported chains

## 3. Step-by-step calculation

### Component A: Redemption fee tracking
- **Purpose**: Establishes the baseline revenue structure that expenses are measured against
- **Logic**: Monitors token transfers to specific Toucan protocol addresses including ecosystem funds and BCT/NCT pool retirement addresses on Polygon and Celo chains. Filters out transfers of denylisted scam tokens. Maps Celo token addresses to their Polygon equivalents for standardized processing
- **Key fields**: Uses `block_timestamp` for daily aggregation, `to_address` to identify Toucan accounts, `token_address` for asset identification, and `value` for transfer amounts

### Component B: Revenue calculation  
- **Purpose**: Converts redemption fees to USD-denominated daily revenue
- **Logic**: Takes raw token transfer amounts, applies decimal correction based on token metadata, converts to USD using end-of-day price feeds, and aggregates by day. All revenue flows through Polygon chain configuration for consistent processing
- **Key fields**: Produces `timestamp`, `chain_id`, `product_id`, and `revenue` fields with USD-denominated values

### Component C: Fee calculation
- **Purpose**: Establishes fee structure identical to revenue
- **Logic**: Directly copies revenue values as fees, since Toucan protocol retains all redemption fees collected
- **Key fields**: Maintains same structure with `fees` field matching `revenue` values exactly

### Component D: Token incentives calculation
- **Purpose**: Sets token-based incentive payments to zero
- **Logic**: Creates zero values for token incentives while maintaining the same temporal and dimensional structure as fees. Uses the fee metric's timestamp and chain structure as a template
- **Key fields**: Produces `token_incentives` field with consistent zero values across all time periods and chains

### Final aggregation
- **Combining components**: Takes the zero token incentives from Component D and renames the field to `expenses`
- **Currency conversion**: No additional conversion needed as values are already zero
- **Time aggregation**: Maintains daily time boundaries established in the revenue calculation
- **Final calculation**: Expenses equal token incentives, which are consistently zero, representing that Toucan protocol currently does not distribute token-based incentive payments

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

Total project operating and incentive expenses.

Toucan Protocol

Expenses

Expenses

Competitive landscape

Chain breakdown