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XDC Network

# XDC Network Earnings Methodology

## 1. Overview

XDC Network earnings represents the net profit generated by the XDC blockchain, calculated as total revenue minus total expenses. This metric answers the fundamental business question of how much value the network retains after accounting for operational costs. The calculation uses a standard earnings formula where revenue comes from gas fees paid by users for transactions, while expenses consist of token incentives distributed through the XDC Network Surge Program.

## 2. Data sources

The calculation relies on several key data sources:

- **XDC blockchain transactions**: Complete transaction records from the XDC Network including gas usage, gas prices, sender/receiver addresses, and timestamps
- **XDC Network Surge Program events**: Parsed `Distributor_Claimed` events from the merkle-based token incentive distribution system
- **End-of-day price feeds**: Token price data for USD conversion of both XDC gas fees and distributed token incentives  
- **Token metadata**: Information about token contracts, symbols, and decimal precision for proper amount calculations

## 3. Step-by-step calculation

### Component A: Revenue from gas fees
- **Purpose**: Calculate total revenue generated from transaction fees paid by XDC Network users
- **Logic**: Extract all XDC blockchain transactions and compute gas fees by multiplying `gas_used` by `gas_price` for each transaction. The raw gas fee amounts are divided by 1e18 to convert from wei to XDC token units. These XDC amounts are then converted to USD using end-of-day price feeds and aggregated by day. The calculation treats the entire gas fee as revenue to the network.
- **Key fields**: `gas_used` (gas consumed by transaction), `gas_price` (price per gas unit), `block_timestamp` (transaction timing), `token_address` (hardcoded as XDC token contract)

### Component B: Expenses from token incentives  
- **Purpose**: Calculate total expenses from token incentives distributed through the XDC Network Surge Program
- **Logic**: Extract all `Distributor_Claimed` events from the XDC Network Surge Program's merkle-based distribution system. Each event represents tokens claimed by participants as incentives. The `amount` field from these events is corrected for token decimals and converted to USD using end-of-day price feeds. All incentive distributions are aggregated by day and treated as network expenses.
- **Key fields**: `amount` (tokens distributed), `token_address` (incentive token contract), `block_timestamp` (distribution timing), `account_address` (recipient)

### Final aggregation
- **Combining components**: Revenue and expenses are calculated separately as daily aggregates, then joined by timestamp to compute net earnings for each day
- **Currency conversion**: Both revenue (gas fees) and expenses (token incentives) are converted to USD using end-of-day price feeds, with gas fees requiring division by 1e18 and incentive amounts requiring decimal correction based on token metadata
- **Time aggregation**: All data is truncated to daily boundaries using `timestamp_trunc(block_timestamp, day)` to ensure consistent daily reporting periods
- **Final calculation**: Daily earnings equals daily gas fee revenue minus daily token incentive expenses, with any missing days filled with zero values to maintain complete time series coverage

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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