Informativa ambientale ai sensi dell’art. 66 (5) del Regolamento MiCAR

Scarica gli indicatori di sostenibilità in PDF

Le informazioni sugli impatti climatici ed energetici qui di seguito riportate sono state elaborate da Crypto Risk Metrics in data 19/11/2025. Tali informazioni, così come il documento allegato, sono redatti esclusivamente in lingua inglese, ovvero la lingua comunemente utilizzata negli ambienti della finanza internazionale, in ottemperanza a quanto previsto dall’art. 3.3 del Regolamento delegato (UE) 2025/422: “Le informazioni di cui al paragrafo 1 sono messe a disposizione in almeno una delle lingue ufficiali dello Stato membro d’origine del prestatore di servizi per le cripto-attività oppure in una lingua comunemente utilizzata negli ambienti della finanza internazionale.”

About the Crypto Asset Service Provider (CASP)

Name of the CASP: CHECKSIG S.R.L. SOCIETA’ BENEFIT

Street and number: PIAZZA DEL LIBERTY, 8

City: MILANO

Country: Italy

LEI: 8156006C715AAACC5D19

About this report

This disclosure serves as evidence of compliance with the regulatory requirements of MiCAR 66 (5). This requirement obliges crypto asset service providers to disclose significant adverse factors affecting the climate and the environment. In particular, this disclosure complies with the requirements of “Commission Regulation (EU) 2025/422 of December 17, 2024, supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards specifying the content, methods and presentation of information relating to sustainability indicators related to climate-related and other environmental impacts.” The optional information specified in Article 6, par. 8 (a) to (d) DR 2025/422 is not included.

This report is valid until material changes occur in the data, which will result in an immediate adjustment of this report.

Overview

This is an overview of the core indicator energy consumption but does not represent the reporting according to MiCAR 66 (5). Please find the full disclosure below.

#	Crypto-Asset Name	Crypto-Asset FFG	Energy consumption (kWh per calendar year)
1	Bitcoin	V15WLZJMF	204,305,772,785.35
2	Dogecoin	35PLJP6J7	7,840,486,782.44
3	Bitcoin Cash	919BF3W7L	1,320,909,435.03
4	Litecoin	D74JZ1VRD	1,267,981,453.96
5	Ethereum Classic Ether	DGMQMFZD4	806,001,339.41
6	Solana SOL	6QZ1LNC12	6,843,750.00
7	Internet Computer Token	4DHTM5D7P	5,834,160.00
8	Filecoin	S6702SWRZ	2,409,053.34
9	Ethereum Eth	D5RG2FHH0	2,159,953.20
10	Avalanche AVAX	S6JCBF70N	817,744.55
11	Cardano ADA	76QS7QCXB	813,103.20
12	Polkadot DOT	SGD9NLTRG	630,720.00
13	Algorand	K8S6W74KS	420,961.80
14	Sui	64RFW3D8P	394,725.60
15	Ripple XRP	42PHJB2BS	299,655.68
16	Aptos Coin	C4CQCGLH2	262,800.00
17	Injective Token	92M9B0DZ7	242,523.66
18	Polygon POL	GB8DQ8DWN	97,430.89
19	Celestia	M7NN4STH9	83,196.38
20	Bittensor	LBQFC0FVK	25,228.80
21	Wrapped BTC	Z1K7V8BV8	22,995.00
22	ChainLink Token	3R3J70FDR	9,981.33
23	ENA	SPRSCSVSW	9,939.69
24	Uniswap	XMB84LZBZ	9,280.76
25	Aave Token	H618RN577	4,247.28
26	SHIBA INU	M4HFTFNPC	2,895.37
27	Pepe	J41R6PF81	2,753.99
28	Ondo	WKH09L3DV	2,125.12
29	Render Token	XR0JSKLNZ	985.97
30	Arbitrum	44TP35HF9	972.49
31	Graph Token	VMQPVH41W	635.46
32	OFFICIAL TRUMP	LJDPGNXXK	501.03
33	FLOKI	R1XC4HQT5	480.78
34	Dao Maker	/	61.19

Sustainability indicators

Bitcoin

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Bitcoin	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	204305772785.35422	kWh/a
S.10 Renewable energy consumption	34.4781471084	%
S.11 Energy intensity	14.06431	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	84173173.69473	tCO2e
S.14 GHG intensity	5.79444	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Bitcoin is present on the following networks: Bitcoin, Lightning Network.

The Bitcoin blockchain network uses a consensus mechanism called Proof of Work (PoW) to achieve distributed consensus among its nodes. Here’s a detailed breakdown of how it works:

Core Concepts:

Nodes and Miners:
- Nodes: Nodes are computers running the Bitcoin software that participate in the network by validating transactions and blocks.
- Miners: Special nodes, called miners, perform the work of creating new blocks by solving complex cryptographic puzzles.
Blockchain: The blockchain is a public ledger that records all Bitcoin transactions in a series of blocks. Each block contains a list of transactions, a reference to the previous block (hash), a timestamp, and a nonce (a random number used once).
Hash Functions: Bitcoin uses the SHA-256 cryptographic hash function to secure the data in blocks. A hash function takes input data and produces a fixed-size string of characters, which appears random.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by miners into a block. Each transaction must be validated by nodes to ensure it follows the network’s rules, such as correct signatures and sufficient funds.
Mining and Block Creation:
- Nonce and Hash Puzzle: Miners compete to find a nonce that, when combined with the block’s data and passed through the SHA-256 hash function, produces a hash that is less than a target value. This target value is adjusted periodically to ensure that blocks are mined approximately every 10 minutes.
- Proof of Work: The process of finding this nonce is computationally intensive and requires significant energy and resources. Once a miner finds a valid nonce, they broadcast the newly mined block to the network.
Block Validation and Addition: Other nodes in the network verify the new block to ensure the hash is correct and that all transactions within the block are valid. If the block is valid, nodes add it to their copy of the blockchain and the process starts again with the next block.
Chain Consensus: The longest chain (the chain with the most accumulated proof of work) is considered the valid chain by the network. Nodes always work to extend the longest valid chain. In the case of multiple valid chains (forks), the network will eventually resolve the fork by continuing to mine and extending one chain until it becomes longer.

For the calculation of the corresponding indicators, the additional energy consumption and the transactions of the Lightning Network have also been taken into account, as this reflects the

categorization of the Digital Token Identifier Foundation for the respective functionally fungible group (“FFG”) relevant for this reporting. If one would exclude these transactions, the respective estimations regarding the “per transaction” count would be substantially higher.

S.5 Incentive Mechanisms and Applicable Fees

Bitcoin is present on the following networks: Bitcoin, Lightning Network.

The Bitcoin blockchain relies on a Proof-of-Work (PoW) consensus mechanism to ensure the security and integrity of transactions. This mechanism involves economic incentives for miners and a fee structure that supports network sustainability:

Incentive Mechanisms:

Block Rewards:
- Newly Minted Bitcoins: Miners are incentivized by block rewards, which consist of newly created bitcoins awarded to the miner who successfully mines a new block. Initially, the block reward was 50 BTC, but it halves every 210,000 blocks (approx. every four years) in an event known as the \“halving.\”
- Halving and Scarcity: The halving mechanism ensures that the total supply of Bitcoin is capped at 21 million, creating scarcity and potentially increasing value over time.
Transaction Fees:
- User Fees: Each transaction includes a fee paid by the user to incentivize miners to include their transaction in a block. These fees are crucial, especially as the block reward diminishes over time due to halving.
- Fee Market: Transaction fees are determined by the market, where users compete to have their transactions processed quickly. Higher fees typically result in faster inclusion in a block, especially during periods of high network congestion.

For the calculation of the corresponding indicators, the additional energy consumption and the transactions of the Lightning Network have also been taken into account, as this reflects the categorization of the Digital Token Identifier Foundation for the respective functionally fungible group (“FFG”) relevant for this reporting. If one would exclude these transactions, the respective estimations regarding the “per transaction” count would be substantially higher

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

For the calculation of energy consumptions, the so called ‘top-down’ approach is being used, within which an economic calculation of the miners is assumed. Miners are persons or devices that actively participate in the proof-of-work consensus mechanism. The miners are considered to be the central factor for the energy consumption of the network. Hardware is pre-selected based on the consensus mechanism’s hash algorithm: SHA-256. A current profitability threshold is determined on the basis of the revenue and cost structure for mining operations. Only Hardware above the profitability threshold is considered for the network. The energy consumption of the network can be determined by taking into account the distribution for the hardware, the efficiency levels for operating the hardware and on-chain information regarding the miners’ revenue opportunities. If significant use of merge mining is known, this is taken into account. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

To determine the energy consumption of a token, the energy consumption of the network(s) lightning_network is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

To determine the proportion of renewable energy usage, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal energy cost wrt. one more transaction.

Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Share of electricity generated by renewables - Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/share-electricity-renewables.

S.16 Key GHG sources and methodologies

To determine the GHG Emissions, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal emission wrt. one more transaction.

Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Carbon intensity of electricity generation - Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/carbon-intensity-electricity Licenced under CC BY 4.0.

Dogecoin

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Dogecoin	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	7840486782.44496	kWh/a
S.10 Renewable energy consumption	34.4781471084	%
S.11 Energy intensity	0.52247	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	3230249.67328	tCO2e
S.14 GHG intensity	0.21526	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Dogecoin (DOGE) uses a Proof of Work (PoW) consensus mechanism, similar to Bitcoin, but with some key differences.

Core Concepts :

Nodes and Miners:
- Nodes: Nodes in the Dogecoin network are computers running the Dogecoin software. They validate transactions, maintain the blockchain, and relay information across the network.
- Miners: Miners are specialized nodes that solve cryptographic puzzles to create new blocks and validate transactions. This process is known as mining.
Blockchain: The blockchain is a public ledger that records all Dogecoin transactions in a series of blocks. Each block contains a list of transactions, a reference to the previous block (hash), a timestamp, and a nonce (a random number used once).
Hash Functions: Dogecoin uses the Scrypt hash function, which is different from Bitcoin’s SHA-256. Scrypt is designed to be more memory-intensive, making it more resistant to ASIC (Application-Specific Integrated Circuit) mining and encouraging more widespread participation by regular users with less powerful hardware.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by miners into a block. Each transaction is validated by nodes to ensure it adheres to the network’s rules, such as correct signatures and sufficient funds.
Mining and Block Creation:
- Nonce and Hash Puzzle: Miners compete to find a nonce that, when combined with the block’s data and passed through the Scrypt hash function, produces a hash below a certain target value. This target value is adjusted periodically to maintain a consistent block creation time.
- Proof of Work: Finding a valid nonce requires significant computational effort. Once a miner finds a valid nonce, the new block is broadcast to the network.
Block Validation and Addition: Other nodes in the network verify the new block to ensure the hash is correct and that all transactions within the block are valid. If the block is valid, nodes add it to their copy of the blockchain, and the process repeats for the next block.
Chain Consensus: The longest chain (the chain with the most accumulated proof of work) is considered the valid chain by the network. Nodes always work to extend the longest valid chain. In the case of multiple valid chains (forks), the network will eventually resolve the fork by continuing to mine and extending one chain until it becomes longer.

Security and Economic Incentives:

Incentives for Miners:
- Block Rewards: Miners are incentivized to participate in the network by receiving block rewards. Initially, Dogecoin had a variable block reward, but now it offers a fixed reward of 10,000 DOGE per block.
- Transaction Fees: Miners also collect transaction fees from the transactions included in the block. These fees provide an additional incentive for miners.
Security:
- Hash Rate and Difficulty: The security of the Dogecoin network is directly proportional to its hash rate, the total computational power of all miners. A higher hash rate means more difficult and costly attacks.
- 51% Attack: An attacker would need to control more than 50% of the network’s hash rate to double-spend or rewrite parts of the blockchain. The cost and resource requirement for such an attack make it impractical for a sufficiently large and decentralized network like Dogecoin.
Merged Mining: Dogecoin supports merged mining with Litecoin (LTC). This means miners can mine both Dogecoin and Litecoin simultaneously without additional computational effort. This enhances the security of both networks by pooling their hash rates.

S.5 Incentive Mechanisms and Applicable Fees

Dogecoin uses a Proof of Work (PoW) consensus mechanism to ensure network security and integrity, relying on economic incentives for miners and transaction fees from users.

Incentive Mechanisms

Miners:
- Block Rewards: Miners receive block rewards for successfully mining new blocks. Initially, Dogecoin had a variable block reward, but it now offers a fixed reward of 10,000 DOGE per block. These rewards are a primary incentive for miners to invest in the computational power necessary to secure the network.
- Transaction Fees: In addition to block rewards, miners also earn transaction fees from the transactions they include in the blocks they mine. Although Dogecoin’s transaction fees are typically low, they still provide an important supplementary income for miners.
- Merged Mining: Dogecoin supports merged mining with Litecoin, allowing miners to simultaneously mine both cryptocurrencies without additional computational effort. This process increases the hash rate and security of both networks by pooling their resources.
Security:
- Hash Rate and Difficulty: The security of Dogecoin’s network is directly related to its hash rate, the total computational power used by all miners. A higher hash rate makes the network more resistant to attacks. The mining difficulty adjusts periodically to ensure that blocks are mined approximately every minute, maintaining network stability.
- 51% Attack Deterrence: Controlling more than 50% of the network’s hash rate to perform a 51% attack is costly and difficult. The significant computational power and energy required make such attacks impractical for a large and decentralized network like Dogecoin.

Fees Applicable on the Dogecoin Blockchain:

Transaction Fees:
- Flat Fee Structure: Dogecoin uses a relatively simple fee structure. The typical transaction fee is 1 DOGE per kilobyte of transaction data. This low fee is one of Dogecoin’s appeals, making it suitable for small and micro-transactions.
- Incentives for Faster Processing: Although transaction fees are generally low, users can choose to pay higher fees to incentivize miners to include their transactions in the next block, ensuring faster processing times.
Mining Rewards:
- Block Subsidy: The fixed block reward of 10,000 DOGE incentivizes miners to continue securing the network. This reward will persist as Dogecoin does not have a maximum supply cap, ensuring continuous incentives for miners.
- Fee Inclusion: Besides the block subsidy, the inclusion of transaction fees provides an additional, albeit smaller, incentive for miners to process transactions efficiently.

S.9 Energy consumption sources and methodologies

For the calculation of energy consumptions, the so called ‘top-down’ approach is being used, within which an economic calculation of the miners is assumed. Miners are persons or devices that actively participate in the proof-of-work consensus mechanism. The miners are considered to be the central factor for the energy consumption of the network. Hardware is pre-selected based on the consensus mechanism’s hash algorithm: Scrypt. A current profitability threshold is determined on the basis of the revenue and cost structure for mining operations. Only Hardware above the profitability threshold is considered for the network. The energy consumption of the network can be determined by taking into account the distribution for the hardware, the efficiency levels for operating the hardware and on-chain information regarding the miners’ revenue opportunities. If significant use of merge mining is known, this is taken into account. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

“Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/share-electricity-renewables.

S.16 Key GHG sources and methodologies

Bitcoin Cash

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Bitcoin Cash	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	1320909435.02569	kWh/a
S.10 Renewable energy consumption	34.4781471084	%
S.11 Energy intensity	0.12586	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	544209.48461	tCO2e
S.14 GHG intensity	0.05186	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Bitcoin Cash is present on the following networks: Bitcoin Cash, Smart Bitcoin Cash.

The Bitcoin Cash blockchain network uses a consensus mechanism called Proof of Work (PoW) to achieve distributed consensus among its nodes. It originated from the Bitcoin blockchain, hence has the same consensus mechanisms but with a larger block size, which makes it more centralized.

Core Concepts:

Nodes and Miners:
- Nodes: Nodes are computers running the Bitcoin Cash software that participate in the network by validating transactions and blocks.
- Miners: Special nodes, called miners, perform the work of creating new blocks by solving complex cryptographic puzzles.
Blockchain: The blockchain is a public ledger that records all Bitcoin Cash transactions in a series of blocks. Each block contains a list of transactions, a reference to the previous block (hash), a timestamp, and a nonce (a random number used once).
Hash Functions: Bitcoin Cash uses the SHA-256 cryptographic hash function to secure the data in blocks. A hash function takes input data and produces a fixed-size string of characters, which appears random.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by miners into a block. Each transaction must be validated by nodes to ensure it follows the network’s rules, such as correct signatures and sufficient funds.
Mining and Block Creation:
- Nonce and Hash Puzzle: Miners compete to find a nonce that, when combined with the block’s data and passed through the SHA-256 hash function, produces a hash that is less than a target value. This target value is adjusted periodically to ensure that blocks are mined approximately every 10 minutes.
- Proof of Work: The process of finding this nonce is computationally intensive and requires significant energy and resources. Once a miner finds a valid nonce, they broadcast the newly mined block to the network.
Block Validation and Addition:
- Other nodes in the network verify the new block to ensure the hash is correct and that all transactions within the block are valid.
- If the block is valid, nodes add it to their copy of the blockchain and the process starts again with the next block.
Chain Consensus:
- The longest chain (the chain with the most accumulated proof of work) is considered the valid chain by the network. Nodes always work to extend the longest valid chain.
- In the case of multiple valid chains (forks), the network will eventually resolve the fork by continuing to mine and extending one chain until it becomes longer.

Smart Bitcoin Cash (SmartBCH) operates as a sidechain to Bitcoin Cash (BCH), leveraging a hybrid consensus mechanism combining Proof of Work (PoW) compatibility and validator-based validation.# Core Components:- Proof of Work Compatibility: SmartBCH relies on Bitcoin Cash’s PoW for settlement and security, ensuring robust integration with BCH’s main chain.

SHA-256 Algorithm: Uses the same SHA-256 hashing algorithm as Bitcoin Cash, allowing compatibility with existing mining hardware and infrastructure.
Consensus via Validators: Transactions within SmartBCH are validated by a set of validators chosen based on staking and operational efficiency. This hybrid approach combines the hash power of PoW with a validator-based model to enhance scalability and flexibility.## S.5 Incentive Mechanisms and Applicable FeesBitcoin Cash is present on the following networks: Bitcoin Cash, Smart Bitcoin Cash.

The Bitcoin Cash blockchain operates on a Proof-of-Work (PoW) consensus mechanism, with incentives and fee structures designed to support miners and the overall network’s sustainability:

Incentive Mechanism:

Block Rewards:
- Newly Minted Bitcoins: Miners receive a block reward, which consists of newly created bitcoins for successfully mining a new block. Initially, the reward was 50 BCH, but it halves approximately every four years in an event known as the \“halving.\”
- Halving and Scarcity: The halving ensures that the total supply of Bitcoin Cash is capped at 21 million BCH, creating scarcity that could drive up value over time.
Transaction Fees:
- User Fees: Each transaction includes a fee, paid by users, that incentivizes miners to include the transaction in a new block. This fee market becomes increasingly important as block rewards decrease over time due to the halving events.
- Fee Market: Transaction fees are market-driven, with users competing to get their transactions included quickly. Higher fees lead to faster transaction processing, especially during periods of high network congestion.

Applicable Fees:

Transaction Fees: Bitcoin Cash transactions require a small fee, paid in BCH, which is determined by the transaction’s size and the network demand at the time. These fees are crucial for the continued operation of the network, particularly as block rewards decrease over time due to halvings.
Fee Structure During High Demand: In times of high congestion, users may choose to increase their transaction fees to prioritize their transactions for faster processing. The fee structure ensures that miners are incentivized to prioritize higher-fee transactions.

SmartBCH’s incentive model encourages validators and network participants to secure the sidechain and process transactions efficiently.

Incentive Mechanisms:

Validator Rewards: Validators are rewarded with a share of transaction fees for their role in validating transactions and maintaining the network.
Economic Alignment: The system incentivizes validators to act in the network’s best interest, ensuring stability and fostering adoption through economic alignment.

Applicable Fees:

Transaction Fees: Fees for transactions on SmartBCH are paid in BCH, ensuring seamless integration with the Bitcoin Cash ecosystem.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

For the calculation of energy consumptions, the so called ‘bottom-up’ approach is being used. The nodes are considered to be the central factor for the energy consumption of the network. These assumptions are made on the basis of empirical findings through the use of public information sites, open-source crawlers and crawlers developed in-house. The main determinants for estimating the hardware used within the network are the requirements for operating the client software. The energy consumption of the hardware devices was measured in certified test laboratories. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Litecoin

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Litecoin	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	1267981453.95689	kWh/a
S.10 Renewable energy consumption	34.4781471084	%
S.11 Energy intensity	0.04390	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	522403.36487	tCO2e
S.14 GHG intensity	0.01808	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Litecoin, like Bitcoin, uses Proof of Work (PoW) as its consensus mechanism, but with a few key differences:

Scrypt Hashing Algorithm: Unlike Bitcoin’s SHA-256 algorithm, Litecoin uses the Scrypt hashing algorithm, which is more memory-intensive. This makes mining Litecoin more accessible to regular users and limits the advantages of specialized hardware (like ASICs) in the early years.
Mining and Block Creation: Miners compete to solve cryptographic puzzles and, upon success, add new blocks to the blockchain. This process involves solving the Scrypt algorithm, which requires computational work. The first miner to solve the problem earns the block reward and transaction fees associated with the transactions in the block.
Block Time: Litecoin has a block time of 2.5 minutes, much faster than Bitcoin’s 10 minutes. This means transactions confirm more quickly, increasing the overall network speed.
Block Reward Halving: Similar to Bitcoin, Litecoin has a block reward halving event approximately every four years. Initially, miners earned 50 LTC per block, but this reward decreases by half after each halving event. This process continues until the maximum supply of 84 million LTC is reached.
Difficulty Adjustment: Litecoin adjusts the mining difficulty approximately every 2,016 blocks (about every 3.5 days) to ensure that blocks continue to be mined at a consistent rate of 2.5 minutes per block, regardless of fluctuations in the total network hash rate.

S.5 Incentive Mechanisms and Applicable Fees

Litecoin, like Bitcoin, uses the Proof of Work (PoW) consensus mechanism to secure transactions and incentivize miners.

Incentive Mechanisms:

Mining Rewards:
- Block Rewards: Miners are rewarded with Litecoin (LTC) for successfully mining new blocks. Initially, miners received 50 LTC per block, but this reward halves approximately every four years.
- Transaction Fees: Miners also earn transaction fees from the transactions included in the blocks they mine. Users pay fees to have their transactions processed by miners, especially when they need faster confirmation times.
Halving: The halving mechanism ensures that over time, fewer Litecoins are introduced into circulation, creating a deflationary model. This makes mining more valuable as the circulating supply becomes scarcer, incentivizing miners to continue participating in the network even as block rewards decrease.
Economic Security: The cost of mining (e.g., hardware and electricity) provides a strong economic incentive for miners to act honestly. If miners attempt to cheat or attack the network, they risk losing the computational work they invested, as invalid blocks will be rejected by the network.

Fees on the Litecoin Blockchain:

Transaction Fees: Litecoin users pay a transaction fee for each transaction, typically calculated in LTC per byte of transaction data. The fees are dynamic and vary based on network congestion.
Low Fees: Litecoin is known for its relatively low transaction fees compared to other blockchains like Bitcoin, which makes it ideal for smaller transactions and micro-payments.
Fee Redistribution: Collected transaction fees are distributed to miners as part of their rewards for validating transactions and securing the network.

S.9 Energy consumption sources and methodologies

For the calculation of energy consumptions, the so called ‘top-down’ approach is being used, within which an economic calculation of the miners is assumed. Miners are persons or devices that actively participate in the proof-of-work consensus mechanism. The miners are considered to be the central factor for the energy consumption of the network. Hardware is pre-selected based on the consensus mechanism’s hash algorithm: Scrypt. A current profitability threshold is determined on the basis of the revenue and cost structure for mining operations. Only Hardware above the profitability threshold is considered for the network. The energy consumption of the network can be determined by taking into account the distribution for the hardware, the efficiency levels for operating the hardware and on-chain information regarding the miners’ revenue opportunities. If significant use of merge mining is known, this is taken into account. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Ethereum Classic Ether

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Ethereum Classic Ether	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	806001339.41212	kWh/a
S.10 Renewable energy consumption	34.4781471084	%
S.11 Energy intensity	0.12259	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	332069.37727	tCO2e
S.14 GHG intensity	0.05051	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Ethereum Classic operates on a Proof of Work (PoW) consensus mechanism with the Etchash algorithm, which is a modified version of Ethash. This PoW model requires computational work from miners to validate transactions and secure the network.

Core Components:

Proof of Work with Etchash Mining and Security: Miners use computational resources to perform the work necessary to add blocks to the blockchain, ensuring network security and resistance to tampering.
Code is Law Philosophy Immutable Ledger: Following the 2016 DAO hack, Ethereum Classic upheld the “Code is Law” principle by retaining the unaltered blockchain. This commitment to immutability sets Ethereum Classic apart, preserving its original ledger without reverting transactions.

S.5 Incentive Mechanisms and Applicable Fees

Ethereum Classic’s incentive model combines block rewards and transaction fees, encouraging miner participation and network security.

Incentive Mechanisms:

Block Rewards: Deflationary Supply Model: Miners receive ETC through block rewards, which decrease over time, similar to Bitcoin’s model. This deflationary design supports ETC’s value retention and incentivizes continued mining efforts.
Transaction Fees: User-Paid Fees: Users pay fees in ETC for sending transactions, interacting with smart contracts, and utilizing dApps. These fees provide miners with additional income and help maintain network security.

Applicable Fees: Ethereum Classic’s fee structure involves user-paid transaction fees to support network operations and discourage spam transactions.

Transaction Fees:
- User-Paid Fees: Every transaction on Ethereum Classic incurs a fee in ETC, based on the computational effort required. These fees ensure that resources are efficiently used and contribute to miner revenue.
- Dynamic Demand-Based Fees: Fees vary according to transaction complexity and network demand, helping maintain transaction efficiency and preventing congestion.
Mining Rewards: Block Rewards Reduction: Block rewards, which are scheduled to reduce over time, provide a primary income source for miners. This model aims to balance network security while managing ETC’s supply.

S.9 Energy consumption sources and methodologies

For the calculation of energy consumptions, the so called ‘top-down’ approach is being used, within which an economic calculation of the miners is assumed. Miners are persons or devices that actively participate in the proof-of-work consensus mechanism. The miners are considered to be the central factor for the energy consumption of the network. Hardware is pre-selected based on the consensus mechanism’s hash algorithm: Etchash. A current profitability threshold is determined on the basis of the revenue and cost structure for mining operations. Only Hardware above the profitability threshold is considered for the network. The energy consumption of the network can be determined by taking into account the distribution for the hardware, the efficiency levels for operating the hardware and on-chain information regarding the miners’ revenue opportunities. If significant use of merge mining is known, this is taken into account. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

“Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/carbon-intensity-electricity Licenced under CC BY 4.0.

Solana SOL

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Solana SOL	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	6843750.00000	kWh/a
S.10 Renewable energy consumption	38.5831139958	%
S.11 Energy intensity	0.00000	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	2319.13534	tCO2e
S.14 GHG intensity	0.00000	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Solana uses a unique combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high throughput, low latency, and robust security.

Core Concepts:

Proof of History (PoH):
- Time-Stamped Transactions: PoH is a cryptographic technique that timestamps transactions, creating a historical record that proves that an event has occurred at a specific moment in time.
- Verifiable Delay Function: PoH uses a Verifiable Delay Function (VDF) to generate a unique hash that includes the transaction and the time it was processed. This sequence of hashes provides a verifiable order of events, enabling the network to efficiently agree on the sequence of transactions.
Proof of Stake (PoS):
- Validator Selection: Validators are chosen to produce new blocks based on the number of SOL tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders can delegate their SOL tokens to validators, earning rewards proportional to their stake while enhancing the network’s security.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by validators. Each transaction is validated to ensure it meets the network’s criteria, such as having correct signatures and sufficient funds.
PoH Sequence Generation: A validator generates a sequence of hashes using PoH, each containing a timestamp and the previous hash. This process creates a historical record of transactions, establishing a cryptographic clock for the network.
Block Production: The network uses PoS to select a leader validator based on their stake. The leader is responsible for bundling the validated transactions into a block. The leader validator uses the PoH sequence to order transactions within the block, ensuring that all transactions are processed in the correct order.
Consensus and Finalization: Other validators verify the block produced by the leader validator. They check the correctness of the PoH sequence and validate the transactions within the block. Once the block is verified, it is added to the blockchain. Validators sign off on the block, and it is considered finalized.

Security and Economic Incentives:

Incentives for Validators:
- Block Rewards: Validators earn rewards for producing and validating blocks. These rewards are distributed in SOL tokens and are proportional to the validator’s stake and performance.
- Transaction Fees: Validators also earn transaction fees from the transactions included in the blocks they produce. These fees provide an additional incentive for validators to process transactions efficiently.
Security:
- Staking: Validators must stake SOL tokens to participate in the consensus process. This staking acts as collateral, incentivizing validators to act honestly. If a validator behaves maliciously or fails to perform, they risk losing their staked tokens.
- Delegated Staking: Token holders can delegate their SOL tokens to validators, enhancing network security and decentralization. Delegates share in the rewards and are incentivized to choose reliable validators.
Economic Penalties: Slashing: Validators can be penalized for malicious behavior, such as double-signing or producing invalid blocks. This penalty, known as slashing, results in the loss of a portion of the staked tokens, discouraging dishonest actions.

S.5 Incentive Mechanisms and Applicable Fees

Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to secure its network and validate transactions.

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators are chosen based on the number of SOL tokens they have staked. They earn rewards for producing and validating blocks, which are distributed in SOL. The more tokens staked, the higher the chances of being selected to validate transactions and produce new blocks.
- Transaction Fees: Validators earn a portion of the transaction fees paid by users for the transactions they include in the blocks. This provides an additional financial incentive for validators to process transactions efficiently and maintain the network’s integrity.
Delegators:
- Delegated Staking: Token holders who do not wish to run a validator node can delegate their SOL tokens to a validator. In return, delegators share in the rewards earned by the validators. This encourages widespread participation in securing the network and ensures decentralization.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior, such as producing invalid blocks or being frequently offline. This penalty, known as slashing, involves the loss of a portion of their staked tokens. Slashing deters dishonest actions and ensures that validators act in the best interest of the network.
- Opportunity Cost: By staking SOL tokens, validators and delegators lock up their tokens, which could otherwise be used or sold. This opportunity cost incentivizes participants to act honestly to earn rewards and avoid penalties. Fees Applicable on the Solana Blockchain

Transaction Fees:

Low and Predictable Fees: Solana is designed to handle a high throughput of transactions, which helps keep fees low and predictable. The average transaction fee on Solana is significantly lower compared to other blockchains like Ethereum.
Fee Structure: Fees are paid in SOL and are used to compensate validators for the resources they expend to process transactions. This includes computational power and network bandwidth.
Rent Fees: State Storage: Solana charges rent fees for storing data on the blockchain. These fees are designed to discourage inefficient use of state storage and encourage developers to clean up unused state. Rent fees help maintain the efficiency and performance of the network.
Smart Contract Fees: Execution Costs: Similar to transaction fees, fees for deploying and interacting with smart contracts on Solana are based on the computational resources required. This ensures that users are charged proportionally for the resources they consume.

S.9 Energy consumption sources and methodologies

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Internet Computer Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Internet Computer Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	5834160.00000 kWh/a	kWh/a
S.10 Renewable energy consumption	35.9000000000 %	%
S.11 Energy intensity	0.00720 kWh	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000 tCO2e	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	2047.79016 tCO2e	tCO2e
S.14 GHG intensity	0.00253	kgCO2e

Qualitative information

S.4 Consensus Mechanism

The Internet Computer Protocol (ICP) uses a unique consensus mechanism called Threshold Relay combined with Chain Key Technology to ensure decentralized, scalable, and secure operations for its network.

Core Components of ICP’s Consensus Mechanism:

Threshold Relay: Threshold Relay is a consensus protocol that enables the network to achieve finality without a traditional Proof-of-Work or Proof-of-Stake mechanism. It leverages a group of nodes called \“the committee\” to generate a random beacon that is used for the selection of the next block producer. The protocol is designed to provide scalability and speed while maintaining decentralization by allowing any node to join the consensus process. The key feature of Threshold Relay is that it utilizes a threshold signature scheme, where a group of nodes must collaborate to create a valid signature, ensuring that consensus is achieved even in the presence of faulty or malicious nodes.
Chain Key Technology: Chain Key Technology is used to manage the state of the Internet Computer, allowing it to scale effectively across a vast number of nodes while still providing fast and secure transaction finality. This technology enables the creation and management of many independent blockchains (also known as subnet blockchains), each with its own set of validators. Chain Key Technology allows the Internet Computer to support billions of smart contracts without compromising speed, as it facilitates quick communication between the subnets and enables cross-chain interoperability.
Canister Smart Contracts:
- The Internet Computer utilizes a decentralized model where the computation of canister smart contracts (which hold the application logic) occurs across different nodes in the network. These canisters can run autonomously and scale with the network’s growth.
- Finality and Security: The consensus mechanism ensures finality once a transaction is validated, meaning that once a block is added, it cannot be reverted, providing the security required for high-stakes applications. The use of Threshold Relay provides robust Byzantine Fault Tolerance (BFT), enabling the network to tolerate faulty or malicious behavior without compromising network integrity.

S.5 Incentive Mechanisms and Applicable Fees

The Internet Computer Protocol (ICP) incentivizes network participants (validators, node operators, and canister developers) through various reward mechanisms and transaction fees. Here’s a breakdown of the incentive mechanisms and applicable fees related to ICP:

Incentive Mechanism:

Network Participation and Rewards:
- Validators: Validators are crucial for maintaining the integrity and security of the network. They stake ICP tokens to participate in consensus and are rewarded for validating blocks, maintaining the integrity of the decentralized network, and ensuring its performance. Rewards for validators are based on their participation in the consensus mechanism and their stake in the network.
- Node Operators: Node operators who maintain the physical infrastructure of the network (such as hardware and server resources) are also rewarded. These operators run the nodes that participate in the Threshold Relay and provide computational power to the network.
Canister Developers and Network Participants:
- Canister Smart Contracts: Developers of canisters (smart contracts) on the Internet Computer are incentivized through the creation of decentralized applications (dApps). Developers may also benefit from transaction fees generated by the usage of their dApps and the deployment of smart contracts on the network.
- Usage Fees: Users of decentralized applications (dApps) or canisters are incentivized to pay for their usage through fees. These fees are often paid in ICP tokens, and developers can receive a share of these fees based on the usage of their deployed applications.
Governance: The ICP Token is used for governance via the Network Nervous System (NNS), where holders of ICP tokens participate in decisions regarding the protocol, such as network upgrades, incentive adjustments, and the allocation of funds. Token holders are rewarded with the ability to influence the future of the network.
Staking Rewards: Staking: ICP token holders can participate in staking their tokens in the NNS, which influences network consensus and governance. By participating in staking, they help secure the network and are rewarded with staking rewards (a form of passive income). The staking rewards are given to token holders who participate in securing the network via the NNS.

Applicable Fees:

Transaction Fees:
- Canister Calls: Every interaction with a canister (smart contract) on the Internet Computer incurs a transaction fee. These fees are typically paid in ICP tokens and are used to cover the computational resources required to process requests, store data, and manage execution.
- Fee Structure: Transaction fees depend on the complexity and resources consumed by the canister call or network operation. For example, operations that require more computational power or data storage may incur higher fees.
Storage Fees: Canister Data Storage: Developers and users who deploy applications on the Internet Computer are required to pay fees for storing data. These fees ensure that network resources are used efficiently and that canisters do not waste storage space. The cost of storage is typically paid in ICP tokens.
Governance Participation Fees: Voting and Proposal Fees: Participation in the governance process via the NNS (Network Nervous System) may require a small fee, depending on the type of governance action (such as submitting a proposal or voting). These fees ensure that governance is distributed and prevent spam attacks on the governance system.
Node and Validator Fees: Fees for Node Operations: Node operators who provide computational power to the network may incur costs related to maintaining hardware and operating nodes. These fees are partially offset by rewards for providing network resources.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) internet_computer is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Carbon intensity of electricity generation - Ember and Energy Institute”

[dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/carbon-intensity-electricity Licenced under CC BY 4.0.

Filecoin

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Filecoin	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	2409053.34136	kWh/a
S.10 Renewable energy consumption	37.9124282679	%
S.11 Energy intensity	0.00166	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	801.76670	tCO2e
S.14 GHG intensity	0.00055	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Filecoin is present on the following networks: Binance Smart Chain, Filecoin, Huobi.

Binance Smart Chain (BSC) uses a hybrid consensus mechanism called Proof of Staked Authority (PoSA), which combines elements of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA). This method ensures fast block times and low fees while maintaining a level of decentralization and security.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegators: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegators earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegators. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegates share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

Filecoin’s consensus mechanism, Expected Consensus (EC), is designed to reward data storage providers based on the amount of storage they contribute.

Core Components of Expected Consensus (EC):

Storage Power-Based Block Production: Probabilistic Block Selection: Block producers (miners) are chosen probabilistically based on their storage power, meaning providers with more storage capacity have higher chances of being selected to produce new blocks.
Proof of Replication (PoRep): Initial Data Verification: Miners provide cryptographic Proof of Replication to verify they are uniquely storing clients’ data at the start of each storage contract.
Proof of Spacetime (PoSt): Ongoing Verification: Miners periodically submit Proof of Spacetime to confirm they continue to store data over the contract’s duration, maintaining data availability and integrity.
Chain Quality and Fork Choice: Chain Quality Rule: In cases of chain splits, the network follows the chain with the highest cumulative storage power, ensuring security by selecting the most robust chain.

The Huobi Eco Chain (HECO) blockchain employs a Hybrid-Proof-of-Stake (HPoS) consensus mechanism, combining elements of Proof-of-Stake (PoS) to enhance transaction efficiency and scalability.

Key Features of HECO’s Consensus Mechanism:

Validator Selection: HECO supports up to 21 validators, selected based on their stake in the network.
Transaction Processing: Validators are responsible for processing transactions and adding blocks to the blockchain.
Transaction Finality: The consensus mechanism ensures quick finality, allowing for rapid confirmation of transactions.
Energy Efficiency: By utilizing PoS elements, HECO reduces energy consumption compared to traditional Proof-of-Work systems.

S.5 Incentive Mechanisms and Applicable Fees

Filecoin is present on the following networks: Binance Smart Chain, Filecoin, Huobi.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegators:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegators to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

Filecoin incentivizes storage providers (miners) to maintain data integrity and make decentralized storage available through block rewards and storage fees.

Incentive Mechanisms:

Block Rewards:
- Storage-Based Block Rewards: Block rewards in FIL (Filecoin’s native token) are given to storage providers selected to add new blocks, proportional to their storage power. These rewards incentivize providers to contribute more storage to the network, enhancing security and decentralized data availability.
- Reward Distribution: Providers with higher storage capacity receive rewards more frequently, creating a direct economic incentive to offer larger storage volumes.
Storage Fees:
- Client Payments: Clients pay storage providers (miners) in FIL tokens to store data, incentivizing providers to offer reliable storage.
- Market Pricing: Storage costs are determined by supply and demand, allowing competitive, flexible pricing based on network conditions.
Data Retrieval Payments: In addition to storage fees, miners can earn retrieval fees for providing data access to clients. These fees incentivize storage providers to make stored data readily accessible, enabling Filecoin to support efficient, decentralized data retrieval services.
Slashing and Penalties:
- If a miner fails to provide Proof of Spacetime, they may face slashing penalties, losing a portion of their FIL collateral. This mechanism disincentivizes data tampering or deletion by holding providers accountable to their storage commitments.
- Client Refunds: In cases of missed proofs, clients may receive refunds or compensations, ensuring that the network maintains a high standard of data reliability and provider accountability.

Applicable Fees:

Transaction Fees: Filecoin charges transaction fees for standard network operations, paid in FIL. These fees help maintain network functionality and discourage spam by aligning costs with network resource usage.
Gas Fees: Miners pay gas fees based on the computational resources required to submit PoRep and PoSt proofs. These fees are integral to the network’s operation, ensuring that participants contribute fairly to Filecoin’s resource demands.
Storage and Retrieval Fees: Clients pay miners for data storage on a contract basis, and retrieval fees are paid when miners deliver data on request. These fees are tailored to the type and duration of storage services, providing flexibility in data pricing and availability.

The Huobi Eco Chain (HECO) blockchain employs a Hybrid-Proof-of-Stake (HPoS) consensus mechanism, combining elements of Proof-of-Stake (PoS) to enhance transaction efficiency and scalability.

Incentive Mechanism:

Validator Rewards: Validators are selected based on their stake in the network. They process transactions and add blocks to the blockchain. Validators receive rewards in the form of transaction fees for their role in maintaining the blockchain’s integrity.
Staking Participation: Users can stake Huobi Token (HT) to become validators or delegate their tokens to existing validators. Staking helps secure the network and, in return, participants receive a portion of the transaction fees as rewards.

Applicable Fees:

Transaction Fees (Gas Fees): Users pay gas fees in HT tokens to execute transactions and interact with smart contracts on the HECO network. These fees compensate validators for processing and validating transactions.
Smart Contract Execution Fees: Deploying and interacting with smart contracts incur additional fees, which are also paid in HT tokens. These fees cover the computational resources required to execute contract code.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) binance_smart_chain, huobi is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Ethereum Eth

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Ethereum Eth	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	2159953.20000	kWh/a
S.10 Renewable energy consumption	37.9124101186	%
S.11 Energy intensity	0.00008	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	718.86066	tCO2e
S.14 GHG intensity	0.00003	kgCO2e

Qualitative information

S.4 Consensus Mechanism

The crypto-asset’s Proof-of-Stake (PoS) consensus mechanism, introduced with The Merge in 2022, replaces mining with validator staking. Validators must stake at least 32 ETH every block a validator is randomly chosen to propose the next block. Once proposed the other validators verify the blocks integrity.

The network operates on a slot and epoch system, where a new block is proposed every 12 seconds, and finalization occurs after two epochs (~12.8 minutes) using Casper-FFG. The Beacon Chain coordinates validators, while the fork-choice rule (LMD-GHOST) ensures the chain follows the heaviest accumulated validator votes. Validators earn rewards for proposing and verifying blocks, but face slashing for malicious behavior or inactivity. PoS aims to improve energy efficiency, security, and scalability, with future upgrades like Proto-Danksharding enhancing transaction efficiency.

S.5 Incentive Mechanisms and Applicable Fees

The crypto-asset’s PoS system secures transactions through validator incentives and economic penalties. Validators stake at least 32 ETH and earn rewards for proposing blocks, attesting to valid ones, and participating in sync committees. Rewards are paid in newly issued ETH and transaction fees.

Under EIP-1559, transaction fees consist of a base fee, which is burned to reduce supply, and an optional priority fee (tip) paid to validators. Validators face slashing if they act maliciously and incur penalties for inactivity.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Avalanche AVAX

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Avalanche AVAX	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	817744.54980	kWh/a
S.10 Renewable energy consumption	36.3152910542	%
S.11 Energy intensity	0.00005	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	307.03511	tCO2e
S.14 GHG intensity	0.00002	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Avalanche AVAX is present on the following networks: Avalanche, Avalanche X Chain.

The Avalanche blockchain network employs a unique Proof-of-Stake consensus mechanism called Avalanche Consensus, which involves three interconnected protocols: Snowball, Snowflake, and Avalanche.

Avalanche Consensus Process:

Snowball Protocol:
- Random Sampling: Each validator randomly samples a small, constant-sized subset of other validators.
- Repeated Polling: Validators repeatedly poll the sampled validators to determine the preferred transaction.
- Confidence Counters: Validators maintain confidence counters for each transaction, incrementing them each time a sampled validator supports their preferred transaction.
- Decision Threshold: Once the confidence counter exceeds a pre-defined threshold, the transaction is considered accepted.
Snowflake Protocol:
- Binary Decision: Enhances the Snowball protocol by incorporating a binary decision process. Validators decide between two conflicting transactions.
- Binary Confidence: Confidence counters are used to track the preferred binary decision.
- Finality: When a binary decision reaches a certain confidence level, it becomes final.
Avalanche Protocol:
- DAG Structure: Uses a Directed Acyclic Graph (DAG) structure to organize transactions, allowing for parallel processing and higher throughput.
- Transaction Ordering: Transactions are added to the DAG based on their dependencies, ensuring a consistent order.
- Consensus on DAG: While most Proof-of-Stake Protocols use a Byzantine Fault Tolerant (BFT) consensus, Avalanche uses the Avalanche Consensus, Validators reach consensus on the structure and contents of the DAG through repeated Snowball and Snowflake.

The Avalanche X-Chain uses the Avalanche consensus protocol, which relies on repeated subsampling of validators to reach agreement on transactions.

S.5 Incentive Mechanisms and Applicable Fees

Avalanche AVAX is present on the following networks: Avalanche, Avalanche X Chain.

Avalanche uses a consensus mechanism known as Avalanche Consensus, which relies on a combination of validators, staking, and a novel approach to consensus to ensure the network’s security and integrity.

Validators:

Staking: Validators on the Avalanche network are required to stake AVAX tokens. The amount staked influences their probability of being selected to propose or validate new blocks. Rewards: Validators earn rewards for their participation in the consensus process. These rewards are proportional to the amount of AVAX staked and their uptime and performance in validating transactions. Delegation: Validators can also accept delegations from other token holders. Delegates share in the rewards based on the amount they delegate, which incentivizes smaller holders to participate indirectly in securing the network.
Economic Incentives:

Block Rewards: Validators receive block rewards for proposing and validating blocks. These rewards are distributed from the network’s inflationary issuance of AVAX tokens. Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This includes fees for simple transactions, smart contract interactions, and the creation of new assets on the network.
Penalties:
- Slashing: Unlike some other PoS systems, Avalanche does not employ slashing (i.e., the confiscation of staked tokens) as a penalty for misbehavior. Instead, the network relies on the financial disincentive of lost future rewards for validators who are not consistently online or act maliciously.
- Uptime Requirements: Validators must maintain a high level of uptime and correctly validate transactions to continue earning rewards. Poor performance or malicious actions result in missed rewards, providing a strong economic incentive to act honestly.

Fees on the Avalanche Blockchain

Transaction Fees:
- Dynamic Fees: Transaction fees on Avalanche are dynamic, varying based on network demand and the complexity of the transactions. This ensures that fees remain fair and proportional to the network’s usage.
- Fee Burning: A portion of the transaction fees is burned, permanently removing them from circulation. This deflationary mechanism helps to balance the inflation from block rewards and incentivizes token holders by potentially increasing the value of AVAX over time.
Smart Contract Fees: Execution Costs: Fees for deploying and interacting with smart contracts are determined by the computational resources required. These fees ensure that the network remains efficient and that resources are used responsibly.
Asset Creation Fees: New Asset Creation: There are fees associated with creating new assets (tokens) on the Avalanche network. These fees help to prevent spam and ensure that only serious projects use the network’s resources.

Validator incentives on the X-Chain are indirect and come from network-wide AVAX issuance. Transaction fees are fixed and burned to prevent spam and reduce the total supply of AVAX over time

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) avalanche, avalanche_x_chain is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Carbon intensity of electricity generation - Ember and Energy Institute”

Cardano ADA

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Cardano ADA	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	813103.20000	kWh/a
S.10 Renewable energy consumption	37.4187578605	%
S.11 Energy intensity	0.00114	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	273.81815	tCO2e
S.14 GHG intensity	0.00039	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Core Components: Cardano uses the Ouroboros consensus mechanism, a Proof of Stake (PoS) protocol designed for scalability, security, and energy efficiency.

Core Concepts:

Proof of Stake (PoS): Validators (called slot leaders) are selected based on the amount of ADA they have staked, rather than solving complex computational puzzles. Validators propose and validate blocks, which are added to the blockchain.
Epochs and Slot Leaders: Cardano divides time into epochs (fixed time periods), each of which is subdivided into slots. Slot leaders are selected for each slot to validate and propose blocks. Slot leaders are chosen randomly based on the amount of ADA staked. More stake increases the probability of being selected. Validators are responsible for confirming transactions during their slot and passing the block to the next slot leader.
Delegation and Staking Pools: ADA holders can delegate their tokens to staking pools, which increases the pool’s chances of being selected to validate a block. The pool operator and delegators share the rewards based on their stakes. This system ensures that participants who do not want to operate a full validator node can still earn rewards and contribute to network security by supporting trusted staking pools.
Security and Adversary Resistance: Ouroboros ensures security even in the presence of potential attacks. It assumes that adversaries may attempt to propagate alternative chains or send arbitrary messages. The protocol is secure as long as more than 51% of the staked ADA is controlled by honest participants. Settlement Delay: To protect against adversarial attacks, the new slot leader must consider the last few blocks as transient. Only the blocks preceding these are treated as finalized, ensuring that chain finality is secure against manipulation attempts. This mechanism also allows participants to temporarily go offline and resynchronize as long as they are not disconnected for more than the settlement delay period.
Chain Selection: Cardano’s nodes adopt the longest valid chain rule: each node stores a local copy of the blockchain and replaces it with any discovered valid, longer chain. This ensures that all nodes eventually converge on a single version of the blockchain, maintaining network consistency.

S.5 Incentive Mechanisms and Applicable Fees

Cardano uses incentive mechanisms to ensure network security and decentralization through staking rewards, slashing mechanisms, and transaction fees.

Incentive Mechanisms to Secure Transactions:

Staking Rewards:
- Validators, known as slot leaders, secure the network by validating transactions and creating new blocks. To participate, validators must stake ADA, and those with larger stakes are more likely to be selected as slot leaders.
- Validators are rewarded with newly minted ADA and transaction fees for successfully producing blocks and validating transactions.
- Delegates, who may not wish to run a validator node, can delegate their ADA to staking pools. By doing so, they contribute to the network’s security and earn a share of the rewards earned by the pool. The rewards are distributed proportionally based on the amount of ADA delegated.
Slashing Mechanism:
- To prevent malicious behavior, Cardano employs a slashing mechanism. Validators who act dishonestly, fail to validate transactions properly, or produce incorrect blocks face penalties that involve the slashing of a portion of their staked ADA.
- This provides strong economic incentives for validators to act honestly and ensures the network’s integrity and security.
Delegation and Pool Operation:
- Staking pools can charge operation fees (a margin on rewards) to maintain their infrastructure. This includes fixed costs set by pool operators. Delegates earn rewards after pool fees are deducted, providing a balanced incentive for both operators and delegates to participate actively.
- Rewards are distributed at the end of each epoch, where staking pool performance and participation determine the distribution of ADA rewards to all stakeholders.

Applicable Fees:

Transaction Fees:
- Transaction fees on Cardano are paid in ADA and are generally low. They are calculated based on the size of the transaction and the network’s current demand. These fees are paid to validators for including transactions in new blocks.
- The fee formula is: a + b × size, where a is a constant (typically 0.155381 ADA), b is a coefficient related to the transaction size (0.000043946 ADA/byte), and size refers to the transaction size in bytes. This ensures that the fee adapts based on network load and the size of each transaction.
Staking Pool Fees:
- Staking pool operators charge operational costs and a margin fee, which covers the cost of running and maintaining the staking pool. These fees vary between pools but ensure that operators can continue to provide their services while offering rewards to delegators.
- After the operator’s fee, the remaining rewards are distributed among the delegators based on the size of their stake.

S.9 Energy consumption sources and methodologies

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Polkadot DOT

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Polkadot DOT	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	630720.00000	kWh/a
S.10 Renewable energy consumption	39.0267442857	%
S.11 Energy intensity	0.00004	kWh
S.12 Scope 1 DLT GHG emission - Controlled	0.00000	tCO2e
S.13 Scope 2 DLT GHG emission - Purchased	186.14368	tCO2e
S.14 GHG intensity	0.00001	kgCO2e

Qualitative information

S.4 Consensus Mechanism

Polkadot DOT is present on the following networks: Astar, Polkadot.

Astar uses a hybrid consensus mechanism that combines Proof of Stake (PoS) and Delegated Proof of Stake (DPoS), with the added feature of Sharded Multichain capabilities. The primary goal is to provide a scalable, interoperable, and decentralized platform for building decentralized applications (dApps), which can run on multiple blockchains in parallel.

Key Features of Astar’s Consensus Mechanism:

Proof of Stake (PoS): In Astar, validators participate by staking ASTR tokens, the native currency of the network. The more tokens staked, the higher the chances of being selected as a validator. Validators are responsible for validating transactions and securing the network. Validators receive block rewards for their efforts, which are paid in ASTR tokens.
Delegated Proof of Stake (DPoS): Astar incorporates DPoS to allow ASTR token holders to vote for validators. Token holders delegate their voting power to trusted validators, who then produce blocks and validate transactions. This ensures greater decentralization by allowing the community to have a direct say in who validates the network. Delegates receive a share of the block rewards earned by their selected validators.
Sharded Multichain: Astar’s consensus mechanism allows for multichain execution via Parachains in the Polkadot ecosystem, enabling Astar to process multiple parallel chains and increase scalability. This sharding mechanism ensures that Astar can scale effectively, maintaining high throughput while decentralizing the network.
Finality: Astar leverages Polkadot’s GRANDPA (GHOST-based Recursive Ancestor Deriving Prefix Agreement) finality gadget for fast and deterministic finality. Once a block is finalized, it is irreversible, ensuring the integrity and security of transactions.

Polkadot, a heterogeneous multi-chain framework designed to enable different blockchains to interoperate, uses a sophisticated consensus mechanism known as Nominated Proof-of-Stake (NPoS). This mechanism combines elements of Proof-of-Stake (PoS) and a layered consensus model involving multiple roles and stages.

Core Components:

Validators: Validators are responsible for producing new blocks and finalizing the relay chain, Polkadot’s main chain. They stake DOT tokens and validate transactions, ensuring the security and integrity of the network.
Nominators: Nominators delegate their stake to trusted validators, choosing which validators they believe will act honestly and effectively. They share in the rewards and penalties of the validators they nominate.
Collators: Collators maintain parachains (individual blockchains that connect to the Polkadot relay chain) by collecting transactions from users and producing state transition proofs for validators.
Fishermen: Fishermen monitor the network for malicious activity. They report bad behavior to the validators to help maintain network security.

Consensus Process: Polkadot’s consensus mechanism operates through a combination of two key protocols: GRANDPA (GHOST-based Recursive Ancestor Deriving Prefix Agreement) and BABE (Blind Assignment for Blockchain Extension).

BABE (Block Production): BABE is the block production mechanism. It operates similarly to a lottery, where validators are pseudo-randomly assigned slots to produce blocks based on their stake. Each validator signs the blocks they produce, which are then propagated through the network.
GRANDPA (Finality): GRANDPA is the finality gadget that provides a higher level of security by finalizing blocks after they are produced. Unlike traditional blockchains where blocks are considered final after a number of confirmations, GRANDPA allows for asynchronous finality. Validators vote on chains, and once a supermajority agrees, the chain is finalized instantly.

Detailed Steps:

Block Production (BABE):
- Slot Allocation: Validators are selected to produce blocks in specific time slots.
- Block Proposal: The selected validator for a slot proposes a block, including new transactions and state changes.
Block Propagation and Preliminary Consensus: Proposed blocks are propagated across the network, where other validators verify the correctness of the transactions and state transitions.
Finalization (GRANDPA):
- Voting on Blocks: Validators vote on the chains they believe to be the correct history.
- Supermajority Agreement: Once more than two-thirds of validators agree on a block, it is finalized.
- Instant Finality: This finality process ensures that once a block is finalized, it is irreversible and becomes part of the canonical chain.
Rewards and Penalties: Validators and nominators earn rewards for participating in the consensus process and maintaining network security. Misbehavior, such as producing invalid blocks or being offline, results in penalties, including slashing of staked tokens.

S.5 Incentive Mechanisms and Applicable Fees

Polkadot DOT is present on the following networks: Astar, Polkadot.

Astar incentivizes network participation through block rewards, transaction fees, and staking rewards while encouraging governance via delegated voting.

Incentive Mechanism:

Staking Rewards: Validators earn ASTR tokens for validating transactions and securing the network. The more tokens staked, the higher the chances of validating blocks.
Delegated Proof of Stake (DPoS): ASTR token holders can delegate their tokens to validators, sharing in the rewards based on the performance of their chosen validators.
Cross-Chain dApp Rewards: Developers deploying dApps on Astar earn rewards for using the network’s multichain capabilities.
Governance Participation: ASTR token holders participate in on-chain governance to vote on proposals and protocol changes.

Applicable Fees:

Transaction Fees: Users pay fees in ASTR tokens for transactions. These are collected by validators who process the transactions.
dApp Execution Fees: Developers pay for smart contract execution based on resource demands.
Cross-Chain Fees: Additional fees apply for asset transfers and interactions between different blockchain networks.
Parachain Slot Fees: Astar incurs fees for its parachain slot on the Polkadot network to ensure interoperability.

Polkadot uses a consensus mechanism called Nominated Proof-of-Stake (NPoS), which involves a combination of validators, nominators, and a unique layered consensus process to secure the network:

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators are responsible for producing new blocks and finalizing the relay chain. They are incentivized with staking rewards, which are distributed in proportion to their stake and their performance in the consensus process. Validators earn these rewards for maintaining uptime and correctly validating transactions.
- Commission: Validators can set a commission rate that they charge on the rewards earned by their nominators. This incentivizes them to perform well to attract more nominators.
Nominators:
- Delegation: Nominators stake their tokens by delegating them to trusted validators. They share in the rewards earned by the validators they support. This mechanism incentivizes nominators to carefully choose reliable validators.
- Rewards Distribution: The rewards are distributed among validators and their nominators based on the amount of stake contributed by each party. This ensures that both parties are incentivized to maintain the network’s security.
Collators:
- Parachain Maintenance: Collators maintain parachains by collecting transactions and producing state transition proofs for validators. They are incentivized through rewards for their role in keeping the parachain operational and secure.
Fishermen: Monitoring: Fishermen are responsible for monitoring the network for malicious activities. They are rewarded for identifying and reporting malicious behavior, which helps maintain the network’s security.
Economic Penalties:
- Slashing: Validators and nominators face penalties in the form of slashing if they engage in malicious activities such as double-signing or being offline for extended periods. Slashing results in the loss of a portion of their staked tokens, which serves as a strong deterrent against bad behavior.
- Unbonding Period: To withdraw staked tokens, participants must go through an unbonding period during which their tokens are still at risk of being slashed. This ensures continued network security even when validators or nominators decide to exit.

Fees on the Polkadot Blockchain:

Transaction Fees:
- Dynamic Fees: Transaction fees on Polkadot are dynamic, adjusting based on network demand and the complexity of the transaction. This model ensures that fees remain fair and proportional to the network’s usage.
- Fee Burn: A portion of the transaction fees is burned (permanently removed from circulation), which helps to control inflation and can potentially increase the value of the remaining tokens.
Smart Contract Fees: Execution Costs: Fees for deploying and interacting with smart contracts on Polkadot are based on the computational resources required. This encourages efficient use of network resources.
Parachain Slot Auction Fees: Bidding for Slots: Projects that want to secure a parachain slot must participate in a slot auction. They bid DOT tokens, and the highest bidders win the right to operate a parachain for a specified period. This process ensures that only serious projects with significant backing can secure parachain slots, contributing to the network’s overall quality and security.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) astar is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

S.15 Key energy sources and methodologies

S.16 Key GHG sources and methodologies

Algorand

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Algorand	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	420961.80000	kWh/a

Qualitative information

S.4 Consensus Mechanism

The Algorand blockchain utilizes a consensus mechanism termed Pure Proof-of-Stake (PPoS). Consensus, in this context, describes the method by which blocks are selected and appended to the blockchain. Algorand employs a verifiable random function (VRF) to select leaders who propose blocks for each round.

Upon block proposal, a pseudorandomly selected committee of voters is chosen to evaluate the proposal. If a supermajority of these votes are from honest participants, the block is certified. What makes this algorithm a Pure Proof of Stake is that users are chosen for committees based on the number of algos in their accounts. This system leverages random committee selection to maintain high performance and inclusivity within the network.

The consensus process involves three stages:

Propose: A leader proposes a new block.
Soft Vote: A committee of voters assesses the proposed block.
Certify Vote: Another committee certifies the block if it meets the required honesty threshold.

S.5 Incentive Mechanisms and Applicable Fees

Algorand’s consensus mechanism, Pure Proof-of-Stake (PPoS), relies on the participation of token holders (stakers) to ensure the network’s security and integrity:

Participation Rewards:
- Staking Rewards: Users who participate in the consensus protocol by staking their ALGO tokens earn rewards. These rewards are distributed periodically and are proportional to the amount of ALGO staked. This incentivizes users to hold and stake their tokens, contributing to network security and stability.
- Node Participation Rewards: Validators, also known as participation nodes, are responsible for proposing and voting on blocks. These nodes receive additional rewards for their active role in maintaining the network.
Transaction Fees:
- Flat Fee Model: Algorand employs a flat fee model for transactions, which ensures predictability and simplicity. The standard transaction fee on Algorand is very low (around 0.001 ALGO per transaction). These fees are paid by users to have their transactions processed and included in a block.
- Fee Redistribution: Collected transaction fees are redistributed to participants in the network. This includes stakers and validators, further incentivizing their participation and ensuring continuous network operation.
Economic Security: Token Locking: To participate in the consensus mechanism, users must lock up their ALGO tokens. This economic stake acts as a security deposit that can be slashed (forfeited) if the participant acts maliciously. The potential loss of staked tokens discourages dishonest behavior and helps maintain network integrity.

Fees on the Algorand Blockchain

Transaction Fees: Algorand uses a flat transaction fee model. The current standard fee is 0.001 ALGO per transaction. This fee is minimal compared to other blockchain networks, ensuring affordability and accessibility.
Smart Contract Execution Fees: Fees for executing smart contracts on Algorand are also designed to be low. These fees are based on the computational resources required to execute the contract, ensuring that users are only charged for the actual resources they consume.
Asset Creation Fees: Creating new assets (tokens) on the Algorand blockchain involves a small fee. This fee is necessary to prevent spam and ensure that only genuine assets are created and maintained on the network.

S.9 Energy consumption sources and methodologies

Sui

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Sui	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	394725.60000	kWh/a

Qualitative information

S.4 Consensus Mechanism

The Sui blockchain utilizes a Byzantine Fault Tolerant (BFT) consensus mechanism optimized for high throughput and low latency.

Core Components:

Mysten Consensus Protocol:
- The Sui consensus is based on Mysten Labs’ Byzantine Fault Tolerance (BFT) protocol, which builds on principles of Practical Byzantine Fault Tolerance (pBFT) but introduces key optimizations for performance.
- Leaderless Design: Unlike traditional BFT models, Sui does not rely on a single leader to propose blocks. Validators can propose blocks simultaneously, increasing efficiency and reducing the risks associated with leader failure or attacks.
- Parallel Processing: Transactions can be processed in parallel, maximizing network throughput by utilizing multiple cores and threads. This allows for faster confirmation of transactions and high scalability.
Transaction Validation: Validators are responsible for receiving transaction requests from clients and processing them. Each transaction includes digital signatures and must meet the network’s rules to be considered valid. Validators can propose transactions simultaneously, unlike many other networks that require a sequential, leader-driven process.
Optimistic Execution: Optimistic Consensus: Sui allows validators to process certain non-contentious, independent transactions without waiting for full consensus. This is known as optimistic execution and helps reduce transaction latency for many use cases, allowing for fast finality in most cases.
Finality and Latency: The system only requires three rounds of communication between validators to finalize a transaction. This results in low-latency consensus and rapid transaction confirmation times, achieving scalability while maintaining security.
Fault Tolerance: The system can tolerate up to one-third of validators being faulty or malicious without compromising the integrity of the consensus process.

S.5 Incentive Mechanisms and Applicable Fees

Security and Economic Incentives:

Validators: Validators stake SUI tokens to participate in the consensus process. They earn rewards for validating transactions and securing the network.
Slashing: Validators can be penalized (slashed) for malicious behavior, such as double-signing or failing to properly validate transactions. This helps maintain network security and incentivizes honest behavior.
Delegation: Token holders can delegate their SUI tokens to trusted validators. In return, they share in the rewards earned by validators. This encourages widespread participation in securing the network.

Fees on the SUI Blockchain:

Transaction Fees: Users pay transaction fees to validators for processing and confirming transactions. These fees are calculated based on the computational resources required to process the transaction. Fees are paid in SUI tokens, which is the native cryptocurrency of the Sui blockchain.
Dynamic Fee Model: The transaction fees on Sui are dynamic, meaning they adjust based on network demand and the complexity of the transactions being processed.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) sui is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Ripple XRP

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Ripple XRP	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	299655.68287	kWh/a

Qualitative information

S.4 Consensus Mechanism

Ripple XRP is present on the following networks: Binance Smart Chain, Klaytn, Ripple.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegates: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegators share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

Klaytn employs a modified Istanbul Byzantine Fault Tolerance (IBFT) consensus algorithm, a variant of Proof of Authority (PoA), enabling high performance and immediate transaction finality.

Core Components of Klaytn’s Consensus:

Modified IBFT Algorithm:
- Immediate Transaction Finality: Klaytn’s IBFT algorithm ensures that once a block is validated, it is immediately final and cannot be reversed. This guarantees that transactions are quickly settled, providing a secure and efficient user experience.
Klaytn Governance Council:
- Council-Driven Governance: The Klaytn network is governed by the Klaytn Governance Council, a consortium of global organizations responsible for selecting and maintaining Consensus Nodes (CNs). This council-based governance model balances decentralization with performance and ensures transparency in decision-making.
- Two-Thirds Majority for Finalization: For a block to be finalized, it must receive signatures from more than two-thirds of the council members, ensuring broad consensus and network security.
Three-Tiered Node Architecture:
- Consensus Nodes (CNs): The selected validators responsible for producing and validating blocks. CNs are at the core of the network’s security and stability.
- Proxy Nodes (PNs): Act as intermediaries, relaying data between CNs and the broader network, which helps distribute network traffic and improve accessibility.
- Endpoint Nodes (ENs): Interface directly with end-users, facilitating transactions, executing smart contracts, and serving as user access points to the Klaytn network.

The Ripple blockchain, specifically the XRP Ledger (XRPL), uses a consensus mechanism known as the Ripple Protocol Consensus Algorithm (RPCA). It differs from Proof of Work (PoW) and Proof of Stake (PoS) as it doesn’t rely on mining or staking but instead leverages trusted validators in a Federated Byzantine Agreement (FBA) model.

Core Concepts:

Validators and Unique Node Lists (UNL): Validators are trusted nodes in the network that validate transactions and propose new ledger updates. Each node maintains a list of trusted validators known as its Unique Node List (UNL). Consensus is achieved when 80% of the validators in a node’s UNL agree on the validity of a transaction or block. This ensures high levels of security and decentralization.
Transaction Ordering and Validation: Transactions are broadcast to validators, and once 80% of the validators agree, the transaction is considered confirmed. Each ledger in the XRPL contains transaction data, and validators ensure the validity and proper ordering of these transactions.

Consensus Process:

Proposal Phase: Validators propose new transactions to be added to the ledger.
Validation Phase: Validators vote on proposed transactions by comparing them to their UNL. Consensus is achieved when 80% of validators agree.
Finalization: Once consensus is reached, the transactions are written into the new ledger, making them irreversible and final.

S.5 Incentive Mechanisms and Applicable Fees

Ripple XRP is present on the following networks: Binance Smart Chain, Klaytn, Ripple.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegates:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegates to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

Klaytn’s incentive structure includes block rewards and transaction fees distributed to Consensus Nodes (CNs) and various network funds, fostering network security, sustainability, and community development.

Incentive Mechanisms:

Rewards for Consensus Nodes (CNs):
- Fixed Block Rewards: CNs earn fixed rewards in KLAY tokens for validating and producing blocks. This predictable income incentivizes CNs to maintain active participation and secure the network.
- Transaction Fees: Users pay transaction fees in KLAY tokens, which are collected by the network and distributed among the CNs as additional rewards, further supporting network security and stability.
Block Reward Distribution: Governance Council (GC) Reward:
- Quantitative information: 10% of the block reward goes to the specific CN that proposed the block, incentivizing continuous active participation.
- GC Staking Award: 40% of the block reward is distributed among all Governance Council members who stake KLAY, promoting network security by rewarding staked tokens.
- Klaytn Community Fund (KCF): 30% of each block reward is allocated to the KCF to support community development, dApp creation, and overall ecosystem growth.
- Klaytn Foundation Fund (KFF): 20% of the block reward goes to the KFF, providing resources for long-term network sustainability and future development initiatives.
Transaction Fees:
- User Fees for Network Interaction: Users pay fees in KLAY based on gas usage and gas price for transactions. These fees are then distributed to CNs, incentivizing efficient transaction processing and active participation.

Applicable Fees:

Transaction Fees: Transaction fees on Klaytn are paid in KLAY and calculated based on gas consumption. These fees support network maintenance by compensating validators and fostering economic sustainability.

The Ripple XRP blockchain uses a unique incentive structure that differs from traditional Proof of Work (PoW) or Proof of Stake (PoS) systems, focusing on its Ripple Protocol Consensus Algorithm (RPCA).

Incentive Mechanisms to Secure Transactions:

Validators: Validators on the Ripple network are not directly compensated with rewards like in PoW/PoS models. Instead, they are incentivized by the utility and stability of the network, particularly financial institutions that benefit from Ripple’s efficiency in cross-border payments.
No Mining: Since Ripple does not use mining, it eliminates the need for energy-intensive computations, contributing to fast transaction speeds and scalability.

Fees on the Ripple XRP Blockchain:

Transaction Fees: Ripple charges minimal transaction fees (typically fractions of an XRP, known as \“drops\”) for each transaction. The purpose of these fees is to prevent network spam and overload.
Burn Mechanism: A portion of each transaction fee is burned, meaning it’s permanently removed from circulation. This reduces the overall supply of XRP over time, contributing to potential long-term value stability.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) binance_smart_chain, klaytn is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Aptos Coin

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Aptos Coin	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	262800.00000	kWh/a

Qualitative information

S.4 Consensus Mechanism

Aptos utilizes a Proof-of-Stake approach combined with a BFT consensus protocol to ensure high throughput, low latency, and secure transaction processing.

Core Components:

Parallel Execution: Transactions are processed concurrently using Block-STM, a parallel execution engine, enabling high performance and scalability.
Leader-Based BFT: A leader is selected among validators to propose blocks, while others validate and finalize transactions.
Dynamic Validator Rotation: Validators are rotated regularly, enhancing decentralization and preventing collusion.
Instant Finality: Transactions achieve finality once validated, ensuring that they are irreversible.

S.5 Incentive Mechanisms and Applicable Fees

Incentive Mechanism:

Validator Rewards: Validators earn rewards in APT tokens for validating transactions and producing blocks. Rewards are distributed proportionally based on the stake of validators and their delegators.
Delegator Participation: APT token holders can delegate their tokens to validators, earning a share of the staking rewards without running their own nodes.
Slashing Mechanism: Validators face penalties, such as losing staked tokens, for malicious actions or prolonged inactivity, ensuring accountability and network security.

Applicable Fees:

Transaction Fees: Users pay transaction fees in APT tokens for sending transactions and interacting with smart contracts.
Dynamic Fee Adjustment: Fees are dynamically adjusted based on network activity and resource usage, ensuring cost efficiency and preventing congestion.
Fee Distribution: Transaction fees are distributed among validators and delegators, providing an additional incentive for network participation.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) aptos_coin is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Injective Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Injective Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	242523.66356	kWh/a

Qualitative information

S.4 Consensus Mechanism

Injective Token is present on the following networks: Binance Smart Chain, Cosmos, Ethereum, Injective, Osmosis.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegators: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegates share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

The Cosmos network uses the Cosmos SDK, a modular framework that enables developers to build custom, application-specific blockchains. Cosmos SDK chains rely on Tendermint Core, a Byzantine Fault Tolerant (BFT) Proof of Stake (PoS) consensus engine that supports interoperability and fast transaction finality.

Core Components:

Tendermint BFT Consensus with Proof of Stake:
- Validator Selection: Cosmos validators are selected based on the amount of ATOM they stake or receive from delegates. These validators participate in block proposal and validation through a two-thirds majority voting system.
- Security Threshold: Tendermint BFT ensures network security as long as fewer than one-third of validators act maliciously.
Modular Cosmos SDK Framework:
- Inter-Blockchain Communication (IBC): The Cosmos SDK supports IBC, allowing seamless interoperability between Cosmos-based blockchains.
- Application Blockchain Interface (ABCI): This interface separates the consensus layer from the application layer, enabling developers to implement custom logic without modifying the consensus engine.

Injective operates on a Tendermint-based Proof of Stake (PoS) consensus model, ensuring high throughput and immediate transaction finality.

Core Components:

Tendermint-based Proof of Stake (PoS): Ensures instant transaction finality and supports efficient block production for high-speed transactions.
Validator Selection: Validators are chosen based on the amount of INJ tokens staked, considering both self-staked and delegated tokens, to maintain a decentralized network.
Delegation: INJ holders can delegate their tokens to validators, earning a share of staking rewards while participating in network governance.
Instant Finality: The Tendermint consensus mechanism provides immediate finality, ensuring transactions cannot be reversed once validated.

Osmosis operates on a Proof of Stake (PoS) consensus mechanism, leveraging the Cosmos SDK and Tendermint Core to provide secure, decentralized, and scalable transaction processing.

Core Components:

Proof of Stake (PoS): Validators are chosen based on the amount of OSMO tokens they stake or are delegated by other token holders. Validators are responsible for validating transactions, producing blocks, and maintaining network security.
Cosmos SDK and Tendermint Core: Osmosis uses Tendermint Core for Byzantine Fault Tolerant (BFT) consensus, ensuring fast finality and resistance to attacks as long as less than one-third of validators are malicious.
Decentralized Governance: OSMO token holders can participate in governance by voting on protocol upgrades and network parameters, fostering a community-driven approach to network development.

S.5 Incentive Mechanisms and Applicable Fees

Injective Token is present on the following networks: Binance Smart Chain, Cosmos, Ethereum, Injective, Osmosis.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegates:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegates to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

The Cosmos network incentivizes both validators and delegators to secure the network through staking rewards, funded by transaction fees and newly minted ATOM.

Incentive Mechanisms:

Staking Rewards for Validators and Delegates: ATOM Rewards: Validators earn staking rewards in ATOM tokens for participating in consensus, with rewards shared with delegates who stake ATOM through delegation.
Slashing for Accountability: Penalties for Misconduct: Validators who act maliciously, such as double-signing or staying offline, face slashing penalties, which remove a portion of their staked ATOM. Delegates may also experience slashing if their chosen validator is penalized, encouraging careful selection of trustworthy validators.

Applicable Fees:

Transaction Fees: User-Paid Fees in ATOM: All transactions on the Cosmos Hub incur fees paid in ATOM, compensating validators for transaction processing and helping to prevent network spam.
Customizable Fee Model: Custom Token Fees: Cosmos SDK allows individual chains to define their own transaction fees in tokens other than ATOM, supporting varied application requirements within the ecosystem.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Injective incentivizes network participation through staking rewards and a unique transaction fee model that supports long-term value for INJ tokens.

Incentive Mechanisms:

Staking Rewards: INJ holders earn rewards for staking their tokens, encouraging active participation in securing the network. Validator Rewards: Validators receive staking rewards and transaction fees for processing transactions and maintaining network security.

Applicable Fees:

Transaction Fees: Users pay fees in INJ tokens for network transactions, including smart contract execution and trading. Fee Structure: A portion of transaction fees is burned via a weekly on-chain auction, reducing the overall supply of INJ tokens and supporting a deflationary tokenomics model.

Osmosis incentivizes validators, delegates, and liquidity providers through a combination of staking rewards, transaction fees, and liquidity incentives.

Incentive Mechanisms:

Validator Rewards: Validators earn rewards from transaction fees and block rewards, distributed in OSMO tokens, for their role in securing the network and processing transactions. Delegates who stake their OSMO tokens with validators receive a share of these rewards.
Liquidity Provider Rewards: Users providing liquidity to Osmosis pools earn swap fees and may receive additional incentives in the form of OSMO tokens to encourage liquidity provision.
Superfluid Staking: Liquidity providers can participate in superfluid staking, staking a portion of their OSMO tokens within liquidity pools. This mechanism allows users to earn staking rewards while maintaining liquidity in the pools

Applicable Fees:

Transaction Fees: Users pay transaction fees in OSMO tokens for network activities, including swaps, staking, and governance participation. These fees are distributed to validators and delegates, incentivizing their continued participation and support for network security.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

For the calculation of energy consumptions, the so called ‘bottom-up’ approach is being used. The nodes are considered to be the central factor for the energy consumption of the network. These assumptions are made on the basis of empirical findings through the use of public information sites, open-source crawlers and crawlers developed in-house. The main determinants for estimating the hardware used within the network are the requirements for operating the client software. The energy consumption of the hardware devices was measured in certified test laboratories. Due to the structure of this network, it is not only the mainnet that is responsible for energy consumption. In order to calculate the structure adequately, a proportion of the energy consumption of the connected network, cosmos, must also be taken into account, because the connected network is also responsible for security. This proportion is determined on the basis of gas consumption. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

To determine the energy consumption of a token, the energy consumption of the network(s) binance_smart_chain, cosmos, ethereum, osmosis is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Polygon POL

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Polygon POL	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	97430.88773	kWh/a

Qualitative information

S.4 Consensus Mechanism

Polygon POL is present on the following networks: Ethereum, Polygon.

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for Ethereum that employs a hybrid consensus mechanism. Here’s a detailed explanation of how Polygon achieves consensus:

Core Concepts:

Proof of Stake (PoS):
- Validator Selection: Validators on the Polygon network are selected based on the number of MATIC tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to validators. Delegates share in the rewards earned by validators.
Plasma Chains:
- Off-Chain Scaling: Plasma is a framework for creating child chains that operate alongside the main Ethereum chain. These child chains can process transactions off-chain and submit only the final state to the Ethereum main chain, significantly increasing throughput and reducing congestion.
- Fraud Proofs: Plasma uses a fraud-proof mechanism to ensure the security of off-chain transactions. If a fraudulent transaction is detected, it can be challenged and reverted.

Consensus Process:

Transaction Validation: Transactions are first validated by validators who have staked MATIC tokens. These validators confirm the validity of transactions and include them in blocks.
Block Production:
- Proposing and Voting: Validators propose new blocks based on their staked tokens and participate in a voting process to reach consensus on the next block. The block with the majority of votes is added to the blockchain.
- Checkpointing: Polygon uses periodic checkpointing, where snapshots of the Polygon sidechain are submitted to the Ethereum main chain. This process ensures the security and finality of transactions on the Polygon network.
Plasma Framework:
- Child Chains: Transactions can be processed on child chains created using the Plasma framework. These transactions are validated off-chain and only the final state is submitted to the Ethereum main chain.
- Fraud Proofs: If a fraudulent transaction occurs, it can be challenged within a certain period using fraud proofs. This mechanism ensures the integrity of off-chain transactions.

Security and Economic Incentives:

Incentives for Validators:
- Staking Rewards: Validators earn rewards for staking MATIC tokens and participating in the consensus process. These rewards are distributed in MATIC tokens and are proportional to the amount staked and the performance of the validator.
- Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This provides an additional financial incentive to maintain the network’s integrity and efficiency.
Delegation: Shared Rewards: Delegators earn a share of the rewards earned by the validators they delegate to. This encourages more token holders to participate in securing the network by choosing reliable validators.
Economic Security: Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. This penalty, known as slashing, involves the loss of a portion of their staked tokens, ensuring that validators act in the best interest of the network.

S.5 Incentive Mechanisms and Applicable Fees

Polygon POL is present on the following networks: Ethereum, Polygon.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Polygon uses a combination of Proof of Stake (PoS) and the Plasma framework to ensure network security, incentivize participation, and maintain transaction integrity.

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators on Polygon secure the network by staking MATIC tokens. They are selected to validate transactions and produce new blocks based on the number of tokens they have staked. Validators earn rewards in the form of newly minted MATIC tokens and transaction fees for their services.
- Block Production: Validators are responsible for proposing and voting on new blocks. The selected validator proposes a block, and other validators verify and validate it. Validators are incentivized to act honestly and efficiently to earn rewards and avoid penalties.
- Checkpointing: Validators periodically submit checkpoints to the Ethereum main chain, ensuring the security and finality of transactions processed on Polygon. This provides an additional layer of security by leveraging Ethereum’s robustness.
Delegates:
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to trusted validators. Delegates earn a portion of the rewards earned by the validators, incentivizing them to choose reliable and performant validators.
- Shared Rewards: Rewards earned by validators are shared with delegates, based on the proportion of tokens delegated. This system encourages widespread participation and enhances the network’s decentralization.
Economic Security:
- Slashing: Validators can be penalized through a process called slashing if they engage in malicious behavior or fail to perform their duties correctly. This includes double-signing or going offline for extended periods. Slashing results in the loss of a portion of the staked tokens, acting as a strong deterrent against dishonest actions.
- Bond Requirements: Validators are required to bond a significant amount of MATIC tokens to participate in the consensus process, ensuring they have a vested interest in maintaining network security and integrity.
Transaction Fees:
- Low Fees: One of Polygon’s main advantages is its low transaction fees compared to the Ethereum main chain. The fees are paid in MATIC tokens and are designed to be affordable to encourage high transaction throughput and user adoption.
- Dynamic Fees: Fees on Polygon can vary depending on network congestion and transaction complexity. However, they remain significantly lower than those on Ethereum, making Polygon an attractive option for users and developers.
Smart Contract Fees: Deployment and Execution Costs: Deploying and interacting with smart contracts on Polygon incurs fees based on the computational resources required. These fees are also paid in MATIC tokens and are much lower than on Ethereum, making it cost-effective for developers to build and maintain decentralized applications (dApps) on Polygon.
Plasma Framework: State Transfers and Withdrawals: The Plasma framework allows for off-chain processing of transactions, which are periodically batched and committed to the Ethereum main chain. Fees associated with these processes are also paid in MATIC tokens, and they help reduce the overall cost of using the network.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

For the calculation of energy consumptions, the so called ‘bottom-up’ approach is being used. The nodes are considered to be the central factor for the energy consumption of the network. These assumptions are made on the basis of empirical findings through the use of public information sites, open-source crawlers and crawlers developed in-house. The main determinants for estimating the hardware used within the network are the requirements for operating the client software. The energy consumption of the hardware devices was measured in certified test laboratories. Due to the structure of this network, it is not only the mainnet that is responsible for energy consumption. In order to calculate the structure adequately, a proportion of the energy consumption of the connected network, ethereum, must also be taken into account, because the connected network is also responsible for security. This proportion is determined on the basis of gas consumption. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

To determine the energy consumption of a token, the energy consumption of the network(s) ethereum is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Celestia

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Celestia	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	83196.38304	kWh/a

Qualitative information

S.4 Consensus Mechanism

Celestia is present on the following networks: Celestia, Injective, Osmosis.

Celestia employs a Proof-of-Stake (PoS) consensus mechanism, wherein validators are selected based on the amount of TIA tokens they stake. These validators are responsible for ordering transactions and ensuring data availability within the network.

Injective operates on a Tendermint-based Proof of Stake (PoS) consensus model, ensuring high throughput and immediate transaction finality.

Core Components:

Tendermint-based Proof of Stake (PoS): Ensures instant transaction finality and supports efficient block production for high-speed transactions.
Validator Selection: Validators are chosen based on the amount of INJ tokens staked, considering both self-staked and delegated tokens, to maintain a decentralized network.
Delegation: INJ holders can delegate their tokens to validators, earning a share of staking rewards while participating in network governance.
Instant Finality: The Tendermint consensus mechanism provides immediate finality, ensuring transactions cannot be reversed once validated.

Osmosis operates on a Proof of Stake (PoS) consensus mechanism, leveraging the Cosmos SDK and Tendermint Core to provide secure, decentralized, and scalable transaction processing.

Core Components:

Proof of Stake (PoS): Validators are chosen based on the amount of OSMO tokens they stake or are delegated by other token holders. Validators are responsible for validating transactions, producing blocks, and maintaining network security.
Cosmos SDK and Tendermint Core: Osmosis uses Tendermint Core for Byzantine Fault Tolerant (BFT) consensus, ensuring fast finality and resistance to attacks as long as less than one-third of validators are malicious.
Decentralized Governance: OSMO token holders can participate in governance by voting on protocol upgrades and network parameters, fostering a community-driven approach to network development.

S.5 Incentive Mechanisms and Applicable Fees

Celestia is present on the following networks: Celestia, Injective, Osmosis.

The native token, TIA, serves multiple roles within the Celestia ecosystem. Validators earn rewards in TIA for participating in the consensus process and maintaining data availability. Users pay transaction fees in TIA when submitting data to the network.

Injective incentivizes network participation through staking rewards and a unique transaction fee model that supports long-term value for INJ tokens.

Incentive Mechanisms:

Staking Rewards:

INJ holders earn rewards for staking their tokens, encouraging active participation in securing the network.

Validator Rewards:

Validators receive staking rewards and transaction fees for processing transactions and maintaining network security.

Applicable Fees:

Transaction Fees:

Users pay fees in INJ tokens for network transactions, including smart contract execution and trading.

Fee Structure:

A portion of transaction fees is burned via a weekly on-chain auction, reducing the overall supply of INJ tokens and supporting a deflationary tokenomics model.

Osmosis incentivizes validators, delegators, and liquidity providers through a combination of staking rewards, transaction fees, and liquidity incentives.

Incentive Mechanisms:

Validator Rewards: Validators earn rewards from transaction fees and block rewards, distributed in OSMO tokens, for their role in securing the network and processing transactions. Delegators who stake their OSMO tokens with validators receive a share of these rewards.
Liquidity Provider Rewards: Users providing liquidity to Osmosis pools earn swap fees and may receive additional incentives in the form of OSMO tokens to encourage liquidity provision.
Superfluid Staking: Liquidity providers can participate in superfluid staking, staking a portion of their OSMO tokens within liquidity pools. This mechanism allows users to earn staking rewards while maintaining liquidity in the pools

Applicable Fees:

Transaction Fees:

Users pay transaction fees in OSMO tokens for network activities, including swaps, staking, and governance participation. These fees are distributed to validators and delegators, incentivizing their continued participation and support for network security.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) injective, osmosis is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Bittensor

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Bittensor	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	25228.80000	kWh/a

Qualitative information

S.4 Consensus Mechanism

Bittensor employs a Proof-of-Stake consensus mechanism tailored for integrating blockchain technology with decentralized AI, ensuring secure, efficient, and reliable contributions from its participants.

Proof of Stake (PoS) with Neural Consensus:

Bittensor operates on a PoS consensus model, where validators are selected based on the amount of TAO tokens staked. Validators secure the network by producing and validating blocks, ensuring transaction integrity.
Neural Consensus Integration: A unique feature of Bittensor is its neural consensus, which evaluates the quality of work performed by AI models on the network. Nodes are incentivized to contribute meaningful computations for tasks like AI training, which are validated through peer review and network-wide voting.
Dynamic Validator Selection: The network dynamically adjusts validator participation, prioritizing nodes that contribute both computational and staking resources effectively.
Scalability and Security: The combined PoS and neural consensus model ensures scalability for AI-centric workloads while maintaining blockchain-level security.

S.5 Incentive Mechanisms and Applicable Fees

Bittensor incentivizes network participants through token rewards for securing the network and contributing to its AI capabilities, with a fee structure designed to sustain network operations and encourage participation.

Incentive Mechanism:

TAO Rewards for Validators: Validators earn TAO tokens as rewards for securing the network, validating transactions, and maintaining blockchain integrity. Rewards are distributed based on the validator’s staked TAO tokens and performance in the consensus process.
AI Contribution Rewards: Nodes contributing to the network’s AI computations (e.g., training models) are rewarded in TAO tokens. Rewards are determined by the quality and relevance of contributions, as evaluated through the neural consensus mechanism.
Delegation Rewards: TAO holders who delegate their tokens to validators earn a share of staking rewards, encouraging broader participation in network security and governance.
Dynamic Incentive Structure: Rewards are dynamically allocated based on network activity and AI workloads, promoting sustained contribution and high-quality participation.

Applicable Fees:

Transaction Fees: Users pay transaction fees in TAO tokens for processing transactions on the network. Fees are distributed to validators as additional compensation.
AI Service Fees: Applications utilizing Bittensor’s AI services pay fees in TAO tokens, incentivizing nodes to perform computations and contribute resources.
Low-Cost Fee Model: The network employs a cost-efficient fee structure to attract developers and users while ensuring sustainability for validators and contributors.

S.9 Energy consumption sources and methodologies

Wrapped BTC

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Wrapped BTC	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	22994.99654	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

ChainLink Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	ChainLink Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	9981.33196	kWh/a

Qualitative information

S.4 Consensus Mechanism

ChainLink Token is present on the following networks: Arbitrum, Avalanche, Binance Smart Chain, Ethereum, Fantom, Gnosis Chain, Optimism, Polygon, Solana.

Arbitrum is a Layer 2 solution on top of Ethereum that uses Optimistic Rollups to enhance scalability and reduce transaction costs. It assumes that transactions are valid by default and only verifies them if there’s a challenge (optimistic).

Core Components:

Sequencer: Orders transactions and creates batches for processing.
Bridge: Facilitates asset transfers between Arbitrum and Ethereum.
Fraud Proofs: Protect against invalid transactions through an interactive verification process.

Verification Process:

Transaction Submission: Users submit transactions to the Arbitrum Sequencer, which orders and batches them.
State Commitment: These batches are submitted to Ethereum with a state commitment.
Challenge Period: Validators have a specific period to challenge the state if they suspect fraud.
Dispute Resolution: If a challenge occurs, the dispute is resolved through an iterative process to identify the fraudulent transaction. The final operation is executed on Ethereum to determine the correct state.
Rollback and Penalties: If fraud is proven, the state is rolled back, and the dishonest party is penalized.

Security and Efficiency: The combination of the Sequencer, bridge, and interactive fraud proofs ensures that the system remains secure and efficient. By minimizing on-chain data and leveraging off-chain computations, Arbitrum can provide high throughput and low fees.

The Avalanche blockchain network employs a unique Proof-of-Stake consensus mechanism called Avalanche Consensus, which involves three interconnected protocols: Snowball, Snowflake, and Avalanche.

Avalanche Consensus Process:

Snowball Protocol:
- Random Sampling: Each validator randomly samples a small, constant-sized subset of other validators.
- Repeated Polling: Validators repeatedly poll the sampled validators to determine the preferred transaction.
- Confidence Counters: Validators maintain confidence counters for each transaction, incrementing them each time a sampled validator supports their preferred transaction.
- Decision Threshold: Once the confidence counter exceeds a pre-defined threshold, the transaction is considered accepted.
Snowflake Protocol:
- Binary Decision: Enhances the Snowball protocol by incorporating a binary decision process. Validators decide between two conflicting transactions.
- Binary Confidence: Confidence counters are used to track the preferred binary decision.
- Finality: When a binary decision reaches a certain confidence level, it becomes final.
Avalanche Protocol:
- DAG Structure: Uses a Directed Acyclic Graph (DAG) structure to organize transactions, allowing for parallel processing and higher throughput.
- Transaction Ordering: Transactions are added to the DAG based on their dependencies, ensuring a consistent order.
- Consensus on DAG: While most Proof-of-Stake Protocols use a Byzantine Fault Tolerant (BFT) consensus, Avalanche uses the Avalanche Consensus, Validators reach consensus on the structure and contents of the DAG through repeated Snowball and Snowflake.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegates: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegates share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

Fantom operates on the Lachesis Protocol, an Asynchronous Byzantine Fault Tolerant (aBFT) consensus mechanism designed for fast, secure, and scalable transactions.

Core Components of Fantom’s Consensus:

Lachesis Protocol (aBFT):
- Asynchronous and Leaderless: Lachesis allows nodes to reach consensus independently without relying on a central leader, enhancing decentralization and speed.
- DAG Structure: Instead of a linear blockchain, Lachesis uses a Directed Acyclic Graph (DAG) structure, allowing multiple transactions to be processed in parallel across nodes. This structure supports high throughput, making the network suitable for applications requiring rapid transaction processing.
Event Blocks and Instant Finality:
- Event Blocks: Transactions are grouped into event blocks, which are validated asynchronously by multiple validators. When enough validators confirm an event block, it becomes part of the Fantom network’s history.
- Instant Finality: Transactions on Fantom achieve immediate finality, meaning they are confirmed and cannot be reversed. This property is ideal for applications requiring fast and irreversible transactions.

Gnosis Chain – Consensus Mechanism Gnosis Chain employs a dual-layer structure to balance scalability and security, using Proof of Stake (PoS) for its core consensus and transaction finality.

Core Components:

Two-Layer Structure Layer 1: Gnosis Beacon Chain The Gnosis Beacon Chain operates on a Proof of Stake (PoS) mechanism, acting as the security and consensus backbone. Validators stake GNO tokens on the Beacon Chain and validate transactions, ensuring network security and finality.
Layer 2: Gnosis xDai Chain processes transactions and dApp interactions, providing high-speed, low-cost transactions. Layer 2 transaction data is finalized on the Gnosis Beacon Chain, creating an integrated framework where Layer 1 ensures security and finality, and Layer 2 enhances scalability. Validator Role and Staking Validators on the Gnosis Beacon Chain stake GNO tokens and participate in consensus by validating blocks. This setup ensures that validators have an economic interest in maintaining the security and integrity of both the Beacon Chain (Layer 1) and the xDai Chain (Layer 2). Cross-Layer Security Transactions on Layer 2 are ultimately finalized on Layer 1, providing security and finality to all activities on the Gnosis Chain. This architecture allows Gnosis Chain to combine the speed and cost efficiency of Layer 2 with the security guarantees of a PoS-secured Layer 1, making it suitable for both high-frequency applications and secure asset management.

Optimism is a Layer 2 scaling solution for Ethereum that uses Optimistic Rollups to increase transaction throughput and reduce costs while inheriting the security of the Ethereum main chain.

Core Components:

Optimistic Rollups:
- Rollup Blocks: Transactions are batched into rollup blocks and processed off-chain.
- State Commitments: The state of these transactions is periodically committed to the Ethereum main chain.
Sequencers:
- Transaction Ordering: Sequencers are responsible for ordering transactions and creating batches.
- State Updates: Sequencers update the state of the rollup and submit these updates to the Ethereum main chain.
- Block Production: They construct and execute Layer 2 blocks, which are then posted to Ethereum.
Fraud Proofs:
- Assumption of Validity: Transactions are assumed to be valid by default.
- Challenge Period: A specific time window during which anyone can challenge a transaction by submitting a fraud proof.
- Dispute Resolution: If a transaction is challenged, an interactive verification game is played to determine its validity. If fraud is detected, the invalid state is rolled back, and the dishonest participant is penalized.

Consensus Process:

Transaction Submission: Users submit transactions to the sequencer, which orders them into batches.
Batch Processing: The sequencer processes these transactions off-chain, updating the Layer 2 state.
State Commitment: The updated state and the batch of transactions are periodically committed to the Ethereum main chain. This is done by posting the state root (a cryptographic hash representing the state) and transaction data as calldata on Ethereum.
Fraud Proofs and Challenges: Once a batch is posted, there is a challenge period during which anyone can submit a fraud proof if they believe a transaction is invalid.
- Interactive Verification: The dispute is resolved through an interactive verification game, which involves breaking down the transaction into smaller steps to identify the exact point of fraud.
- Rollbacks and Penalties: If fraud is proven, the batch is rolled back, and the dishonest actor loses their staked collateral as a penalty.
Finality: After the challenge period, if no fraud proof is submitted, the batch is considered final. This means the transactions are accepted as valid, and the state updates are permanent.

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for Ethereum that employs a hybrid consensus mechanism. Here’s a detailed explanation of how Polygon achieves consensus:

Core Concepts:

Proof of Stake (PoS):
- Validator Selection: Validators on the Polygon network are selected based on the number of MATIC tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to validators. Delegates share in the rewards earned by validators.
Plasma Chains:
- Off-Chain Scaling: Plasma is a framework for creating child chains that operate alongside the main Ethereum chain. These child chains can process transactions off-chain and submit only the final state to the Ethereum main chain, significantly increasing throughput and reducing congestion.
- Fraud Proofs: Plasma uses a fraud-proof mechanism to ensure the security of off-chain transactions. If a fraudulent transaction is detected, it can be challenged and reverted.

Consensus Process:

Transaction Validation: Transactions are first validated by validators who have staked MATIC tokens. These validators confirm the validity of transactions and include them in blocks.
Block Production:
- Proposing and Voting: Validators propose new blocks based on their staked tokens and participate in a voting process to reach consensus on the next block. The block with the majority of votes is added to the blockchain.
- Checkpointing: Polygon uses periodic checkpointing, where snapshots of the Polygon sidechain are submitted to the Ethereum main chain. This process ensures the security and finality of transactions on the Polygon network.
Plasma Framework:
- Child Chains: Transactions can be processed on child chains created using the Plasma framework. These transactions are validated off-chain and only the final state is submitted to the Ethereum main chain.
- Fraud Proofs: If a fraudulent transaction occurs, it can be challenged within a certain period using fraud proofs. This mechanism ensures the integrity of off-chain transactions.

Security and Economic Incentives:

Incentives for Validators:
- Staking Rewards: Validators earn rewards for staking MATIC tokens and participating in the consensus process. These rewards are distributed in MATIC tokens and are proportional to the amount staked and the performance of the validator.
- Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This provides an additional financial incentive to maintain the network’s integrity and efficiency.
Delegation: Shared Rewards: Delegators earn a share of the rewards earned by the validators they delegate to. This encourages more token holders to participate in securing the network by choosing reliable validators.
Economic Security: Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. This penalty, known as slashing, involves the loss of a portion of their staked tokens, ensuring that validators act in the best interest of the network.

Solana uses a unique combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high throughput, low latency, and robust security.

Core Concepts:

Proof of History (PoH):
- Time-Stamped Transactions: PoH is a cryptographic technique that timestamps transactions, creating a historical record that proves that an event has occurred at a specific moment in time.
- Verifiable Delay Function: PoH uses a Verifiable Delay Function (VDF) to generate a unique hash that includes the transaction and the time it was processed. This sequence of hashes provides a verifiable order of events, enabling the network to efficiently agree on the sequence of transactions.
Proof of Stake (PoS):
- Validator Selection: Validators are chosen to produce new blocks based on the number of SOL tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders can delegate their SOL tokens to validators, earning rewards proportional to their stake while enhancing the network’s security.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by validators. Each transaction is validated to ensure it meets the network’s criteria, such as having correct signatures and sufficient funds.
PoH Sequence Generation: A validator generates a sequence of hashes using PoH, each containing a timestamp and the previous hash. This process creates a historical record of transactions, establishing a cryptographic clock for the network.
Block Production: The network uses PoS to select a leader validator based on their stake. The leader is responsible for bundling the validated transactions into a block. The leader validator uses the PoH sequence to order transactions within the block, ensuring that all transactions are processed in the correct order.
Consensus and Finalization: Other validators verify the block produced by the leader validator. They check the correctness of the PoH sequence and validate the transactions within the block. Once the block is verified, it is added to the blockchain. Validators sign off on the block, and it is considered finalized.

Security and Economic Incentives:

Incentives for Validators:
- Block Rewards: Validators earn rewards for producing and validating blocks. These rewards are distributed in SOL tokens and are proportional to the validator’s stake and performance.
- Transaction Fees: Validators also earn transaction fees from the transactions included in the blocks they produce. These fees provide an additional incentive for validators to process transactions efficiently.
Security:
- Staking: Validators must stake SOL tokens to participate in the consensus process. This staking acts as collateral, incentivizing validators to act honestly. If a validator behaves maliciously or fails to perform, they risk losing their staked tokens.
- Delegated Staking: Token holders can delegate their SOL tokens to validators, enhancing network security and decentralization. Delegators share in the rewards and are incentivized to choose reliable validators.
Economic Penalties: Slashing: Validators can be penalized for malicious behavior, such as double-signing or producing invalid blocks. This penalty, known as slashing, results in the loss of a portion of the staked tokens, discouraging dishonest actions.

S.5 Incentive Mechanisms and Applicable Fees

ChainLink Token is present on the following networks: Arbitrum, Avalanche, Binance Smart Chain, Ethereum, Fantom, Gnosis Chain, Optimism, Polygon, Solana.

Arbitrum One, a Layer 2 scaling solution for Ethereum, employs several incentive mechanisms to ensure the security and integrity of transactions on its network. The key mechanisms include:

Validators and Sequencers:
- Sequencers are responsible for ordering transactions and creating batches that are processed off-chain. They play a critical role in maintaining the efficiency and throughput of the network.
- Validators monitor the sequencers’ actions and ensure that transactions are processed correctly. Validators verify the state transitions and ensure that no invalid transactions are included in the batches.
Fraud Proofs:
- Assumption of Validity: Transactions processed off-chain are assumed to be valid. This allows for quick transaction finality and high throughput.
- Challenge Period: There is a predefined period during which anyone can challenge the validity of a transaction by submitting a fraud proof. This mechanism acts as a deterrent against malicious behavior.
- Dispute Resolution: If a challenge is raised, an interactive verification process is initiated to pinpoint the exact step where fraud occurred. If the challenge is valid, the fraudulent transaction is reverted, and the dishonest actor is penalized.
Economic Incentives:
- Rewards for Honest Behavior: Participants in the network, such as validators and sequencers, are incentivized through rewards for performing their duties honestly and efficiently. These rewards come from transaction fees and potentially other protocol incentives.
- Penalties for Malicious Behavior: Participants who engage in dishonest behavior or submit invalid transactions are penalized. This can include slashing of staked tokens or other forms of economic penalties, which serve to discourage malicious actions.

Fees on the Arbitrum One Blockchain

Transaction Fees:
- Layer 2 Fees: Users pay fees for transactions processed on the Layer 2 network. These fees are typically lower than Ethereum mainnet fees due to the reduced computational load on the main chain.
- Arbitrum Transaction Fee: A fee is charged for each transaction processed by the sequencer. This fee covers the cost of processing the transaction and ensuring its inclusion in a batch.
L1 Data Fees:
- Posting Batches to Ethereum: Periodically, the state updates from the Layer 2 transactions are posted to the Ethereum mainnet as calldata. This involves a fee, known as the L1 data fee, which accounts for the gas required to publish these state updates on Ethereum.
- Cost Sharing: Because transactions are batched, the fixed costs of posting state updates to Ethereum are spread across multiple transactions, making it more cost-effective for users.

Validators:

Staking: Validators on the Avalanche network are required to stake AVAX tokens. The amount staked influences their probability of being selected to propose or validate new blocks. Rewards: Validators earn rewards for their participation in the consensus process. These rewards are proportional to the amount of AVAX staked and their uptime and performance in validating transactions. Delegation: Validators can also accept delegations from other token holders. Delegators share in the rewards based on the amount they delegate, which incentivizes smaller holders to participate indirectly in securing the network.

Economic Incentives:

Block Rewards: Validators receive block rewards for proposing and validating blocks. These rewards are distributed from the network’s inflationary issuance of AVAX tokens. Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This includes fees for simple transactions, smart contract interactions, and the creation of new assets on the network.

Penalties:

Slashing: Unlike some other PoS systems, Avalanche does not employ slashing (i.e., the confiscation of staked tokens) as a penalty for misbehavior. Instead, the network relies on the financial disincentive of lost future rewards for validators who are not consistently online or act maliciously.
Uptime Requirements: Validators must maintain a high level of uptime and correctly validate transactions to continue earning rewards. Poor performance or malicious actions result in missed rewards, providing a strong economic incentive to act honestly.

Fees on the Avalanche Blockchain

1. Transaction Fees:

Dynamic Fees: Transaction fees on Avalanche are dynamic, varying based on network demand and the complexity of the transactions. This ensures that fees remain fair and proportional to the network’s usage.
Fee Burning: A portion of the transaction fees is burned, permanently removing them from circulation. This deflationary mechanism helps to balance the inflation from block rewards and incentivizes token holders by potentially increasing the value of AVAX over time.

2. Smart Contract Fees:

Execution Costs: Fees for deploying and interacting with smart contracts are determined by the computational resources required. These fees ensure that the network remains efficient and that resources are used responsibly.

3. Asset Creation Fees:

New Asset Creation: There are fees associated with creating new assets (tokens) on the Avalanche network. These fees help to prevent spam and ensure that only serious projects use the network’s resources.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

1. Validators:

Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.

2. Delegates:

Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.

3. Candidates:

Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.

4. Economic Security:

Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
Opportunity Cost: Staking requires validators and delegates to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Fantom’s incentive model promotes network security through staking rewards, transaction fees, and delegation options, encouraging broad participation.

Incentive Mechanisms:

Staking Rewards for Validators:
- Earning Rewards in FTM: Validators who participate in the consensus process earn rewards in FTM tokens, proportional to the amount they have staked. This incentivizes validators to actively secure the network.
- Dynamic Staking Rate: Fantom’s staking reward rate is dynamic, adjusting based on total FTM staked across the network. As more FTM is staked, individual rewards may decrease, maintaining a balanced reward structure that supports long-term network security.
Delegation for Token Holders: Delegated Staking: Users who do not operate validator nodes can delegate their FTM tokens to validators. In return, they share in the staking rewards, encouraging wider participation in securing the network.

Applicable Fees:

Transaction Fees in FTM: Users pay transaction fees in FTM tokens. The network’s high throughput and DAG structure keep fees low, making Fantom ideal for decentralized applications (dApps) requiring frequent transactions.
Efficient Fee Model: The low fees and scalability of the network make it cost-effective for users, fostering a favorable environment for high-volume applications.

The Gnosis Chain’s incentive and fee models encourage both validator participation and network accessibility, using a dual-token system to maintain low transaction costs and effective staking rewards.

Incentive Mechanisms:

Staking Rewards for Validators GNO Rewards: Validators earn staking rewards in GNO tokens for their participation in consensus and securing the network.
Delegation Model: GNO holders who do not operate validator nodes can delegate their GNO tokens to validators, allowing them to share in staking rewards and encouraging broader participation in network security.
Dual-Token Model GNO: Used for staking, governance, and validator rewards, GNO aligns long-term network security incentives with token holders’ economic interests.
xDai: Serves as the primary transaction currency, providing stable and low-cost transactions. The use of a stable token (xDai) for fees minimizes volatility and offers predictable costs for users and developers.

Applicable Fees:

Transaction Fees in xDai Users pay transaction fees in xDai, the stable fee token, making costs affordable and predictable. This model is especially suited for high-frequency applications and dApps where low transaction fees are essential. xDai transaction fees are redistributed to validators as part of their compensation, aligning their rewards with network activity. Delegated Staking Rewards Through delegated staking, GNO holders can earn a share of staking rewards by delegating their tokens to active validators, promoting user participation in network security without requiring direct involvement in consensus operations.

Optimism, an Ethereum Layer 2 scaling solution, uses Optimistic Rollups to increase transaction throughput and reduce costs while maintaining security and decentralization.

Incentive Mechanisms:

Sequencers:
- Transaction Ordering: Sequencers are responsible for ordering and batching transactions off-chain. They play a critical role in maintaining the efficiency and speed of the network.
- Economic Incentives: Sequencers earn transaction fees from users. These fees incentivize sequencers to process transactions quickly and accurately.
Validators and Fraud Proofs:
- Assumption of Validity: In Optimistic Rollups, transactions are assumed to be valid by default. This allows for quick transaction finality.
- Challenge Mechanism: Validators (or anyone) can challenge the validity of a transaction by submitting a fraud proof during a specified challenge period. This mechanism ensures that invalid transactions are detected and reverted.
- Challenge Rewards: Successful challengers are rewarded for identifying and proving fraudulent transactions. This incentivizes participants to actively monitor the network for invalid transactions, thereby enhancing security.
Economic Penalties:
- Fraud Proof Penalties: If a sequencer includes an invalid transaction and it is successfully challenged, they face economic penalties, such as losing a portion of their staked collateral. This discourages dishonest behavior.
- Inactivity and Misbehavior: Validators and sequencers are also incentivized to remain active and behave correctly, as inactivity or misbehavior can lead to penalties and loss of rewards.

Fees Applicable on the Optimism Layer 2 Protocol:

Transaction Fees:
- Layer 2 Transaction Fees: Users pay fees for transactions processed on the Layer 2 network. These fees are generally lower than Ethereum mainnet fees due to the reduced computational load on the main chain.
- Cost Efficiency: By batching multiple transactions into a single batch, Optimism reduces the overall cost per transaction, making it more economical for users.
L1 Data Fees:
- Posting Batches to Ethereum: Periodically, the state updates from Layer 2 transactions are posted to the Ethereum mainnet as calldata. This involves a fee known as the L1 data fee, which covers the gas cost of publishing these state updates on Ethereum.
- Cost Sharing: The fixed costs of posting state updates to Ethereum are spread across multiple transactions within a batch, reducing the cost burden on individual transactions.
Smart Contract Fees: Execution Costs: Fees for deploying and interacting with smart contracts on Optimism are based on the computational resources required. This ensures that users are charged proportionally for the resources they consume.

Polygon uses a combination of Proof of Stake (PoS) and the Plasma framework to ensure network security, incentivize participation, and maintain transaction integrity.

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators on Polygon secure the network by staking MATIC tokens. They are selected to validate transactions and produce new blocks based on the number of tokens they have staked. Validators earn rewards in the form of newly minted MATIC tokens and transaction fees for their services.
- Block Production: Validators are responsible for proposing and voting on new blocks. The selected validator proposes a block, and other validators verify and validate it. Validators are incentivized to act honestly and efficiently to earn rewards and avoid penalties.
- Checkpointing: Validators periodically submit checkpoints to the Ethereum main chain, ensuring the security and finality of transactions processed on Polygon. This provides an additional layer of security by leveraging Ethereum’s robustness.
Delegators:
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to trusted validators. Delegates earn a portion of the rewards earned by the validators, incentivizing them to choose reliable and performant validators.
- Shared Rewards: Rewards earned by validators are shared with delegates, based on the proportion of tokens delegated. This system encourages widespread participation and enhances the network’s decentralization.
Economic Security:
- Slashing: Validators can be penalized through a process called slashing if they engage in malicious behavior or fail to perform their duties correctly. This includes double-signing or going offline for extended periods. Slashing results in the loss of a portion of the staked tokens, acting as a strong deterrent against dishonest actions.
- Bond Requirements: Validators are required to bond a significant amount of MATIC tokens to participate in the consensus process, ensuring they have a vested interest in maintaining network security and integrity. Fees on the Polygon Blockchain

4. Transaction Fees:

Low Fees: One of Polygon’s main advantages is its low transaction fees compared to the Ethereum main chain. The fees are paid in MATIC tokens and are designed to be affordable to encourage high transaction throughput and user adoption.
Dynamic Fees: Fees on Polygon can vary depending on network congestion and transaction complexity. However, they remain significantly lower than those on Ethereum, making Polygon an attractive option for users and developers.

5. Smart Contract Fees: Deployment and Execution Costs: Deploying and interacting with smart contracts on Polygon incurs fees based on the computational resources required. These fees are also paid in MATIC tokens and are much lower than on Ethereum, making it cost-effective for developers to build and maintain decentralized applications (dApps) on Polygon.

6. Plasma Framework: State Transfers and Withdrawals: The Plasma framework allows for off-chain processing of transactions, which are periodically batched and committed to the Ethereum main chain. Fees associated with these processes are also paid in MATIC tokens, and they help reduce the overall cost of using the network.

Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to secure its network and validate transactions.

Incentive Mechanisms:

1. Validators:

Staking Rewards: Validators are chosen based on the number of SOL tokens they have staked. They earn rewards for producing and validating blocks, which are distributed in SOL. The more tokens staked, the higher the chances of being selected to validate transactions and produce new blocks.
Transaction Fees: Validators earn a portion of the transaction fees paid by users for the transactions they include in the blocks. This provides an additional financial incentive for validators to process transactions efficiently and maintain the network’s integrity.

2. Delegators:

Delegated Staking: Token holders who do not wish to run a validator node can delegate their SOL tokens to a validator. In return, delegators share in the rewards earned by the validators. This encourages widespread participation in securing the network and ensures decentralization.

3. Economic Security:

Slashing: Validators can be penalized for malicious behavior, such as producing invalid blocks or being frequently offline. This penalty, known as slashing, involves the loss of a portion of their staked tokens. Slashing deters dishonest actions and ensures that validators act in the best interest of the network.
Opportunity Cost: By staking SOL tokens, validators and delegators lock up their tokens, which could otherwise be used or sold. This opportunity cost incentivizes participants to act honestly to earn rewards and avoid penalties. Fees Applicable on the Solana Blockchain

Transaction Fees:

Low and Predictable Fees: Solana is designed to handle a high throughput of transactions, which helps keep fees low and predictable. The average transaction fee on Solana is significantly lower compared to other blockchains like Ethereum.
Fee Structure: Fees are paid in SOL and are used to compensate validators for the resources they expend to process transactions. This includes computational power and network bandwidth.
Rent Fees: State Storage: Solana charges rent fees for storing data on the blockchain. These fees are designed to discourage inefficient use of state storage and encourage developers to clean up unused state. Rent fees help maintain the efficiency and performance of the network.
Smart Contract Fees: Execution Costs: Similar to transaction fees, fees for deploying and interacting with smart contracts on Solana are based on the computational resources required. This ensures that users are charged proportionally for the resources they consume.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) arbitrum, avalanche, binance_smart_chain, ethereum, fantom, gnosis_chain, optimism, polygon, solana is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

ENA

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	ENA	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	9939.69033	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

Uniswap

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Uniswap	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	9280.76148	kWh/a

Qualitative information

S.4 Consensus Mechanism

Uniswap is present on the following networks: Arbitrum, Binance Smart Chain, Ethereum, Polygon.

Core Components:

Sequencer: Orders transactions and creates batches for processing.
Bridge: Facilitates asset transfers between Arbitrum and Ethereum.
Fraud Proofs: Protect against invalid transactions through an interactive verification process.

Verification Process:

Transaction Submission: Users submit transactions to the Arbitrum Sequencer, which orders and batches them.
State Commitment: These batches are submitted to Ethereum with a state commitment.
Challenge Period: Validators have a specific period to challenge the state if they suspect fraud.
Dispute Resolution: If a challenge occurs, the dispute is resolved through an iterative process to identify the fraudulent transaction. The final operation is executed on Ethereum to determine the correct state.
Rollback and Penalties: If fraud is proven, the state is rolled back, and the dishonest party is penalized.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegates: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegates share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for Ethereum that employs a hybrid consensus mechanism. Here’s a detailed explanation of how Polygon achieves consensus:

Core Concepts:

Proof of Stake (PoS):
- Validator Selection: Validators on the Polygon network are selected based on the number of MATIC tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to validators. Delegates share in the rewards earned by validators.
Plasma Chains:
- Off-Chain Scaling: Plasma is a framework for creating child chains that operate alongside the main Ethereum chain. These child chains can process transactions off-chain and submit only the final state to the Ethereum main chain, significantly increasing throughput and reducing congestion.
- Fraud Proofs: Plasma uses a fraud-proof mechanism to ensure the security of off-chain transactions. If a fraudulent transaction is detected, it can be challenged and reverted.

Consensus Process:

Transaction Validation: Transactions are first validated by validators who have staked MATIC tokens. These validators confirm the validity of transactions and include them in blocks.
Block Production:
- Proposing and Voting: Validators propose new blocks based on their staked tokens and participate in a voting process to reach consensus on the next block. The block with the majority of votes is added to the blockchain.
- Checkpointing: Polygon uses periodic checkpointing, where snapshots of the Polygon sidechain are submitted to the Ethereum main chain. This process ensures the security and finality of transactions on the Polygon network.
Plasma Framework:
- Child Chains: Transactions can be processed on child chains created using the Plasma framework. These transactions are validated off-chain and only the final state is submitted to the Ethereum main chain.
- Fraud Proofs: If a fraudulent transaction occurs, it can be challenged within a certain period using fraud proofs. This mechanism ensures the integrity of off-chain transactions.

Security and Economic Incentives:

Incentives for Validators:
- Staking Rewards: Validators earn rewards for staking MATIC tokens and participating in the consensus process. These rewards are distributed in MATIC tokens and are proportional to the amount staked and the performance of the validator.
- Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This provides an additional financial incentive to maintain the network’s integrity and efficiency.
Delegation: Shared Rewards: Delegates earn a share of the rewards earned by the validators they delegate to. This encourages more token holders to participate in securing the network by choosing reliable validators.
Economic Security: Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. This penalty, known as slashing, involves the loss of a portion of their staked tokens, ensuring that validators act in the best interest of the network.

S.5 Incentive Mechanisms and Applicable Fees

Uniswap is present on the following networks: Arbitrum, Binance Smart Chain, Ethereum, Polygon.

Arbitrum One, a Layer 2 scaling solution for Ethereum, employs several incentive mechanisms to ensure the security and integrity of transactions on its network. The key mechanisms include:

Validators and Sequencers:
- Sequencers are responsible for ordering transactions and creating batches that are processed off-chain. They play a critical role in maintaining the efficiency and throughput of the network.
- Validators monitor the sequencers’ actions and ensure that transactions are processed correctly. Validators verify the state transitions and ensure that no invalid transactions are included in the batches.
Fraud Proofs:
- Assumption of Validity: Transactions processed off-chain are assumed to be valid. This allows for quick transaction finality and high throughput.
- Challenge Period: There is a predefined period during which anyone can challenge the validity of a transaction by submitting a fraud proof. This mechanism acts as a deterrent against malicious behavior.
- Dispute Resolution: If a challenge is raised, an interactive verification process is initiated to pinpoint the exact step where fraud occurred. If the challenge is valid, the fraudulent transaction is reverted, and the dishonest actor is penalized.
Economic Incentives:
- Rewards for Honest Behavior: Participants in the network, such as validators and sequencers, are incentivized through rewards for performing their duties honestly and efficiently. These rewards come from transaction fees and potentially other protocol incentives.
- Penalties for Malicious Behavior: Participants who engage in dishonest behavior or submit invalid transactions are penalized. This can include slashing of staked tokens or other forms of economic penalties, which serve to discourage malicious actions.

Fees on the Arbitrum One Blockchain

Transaction Fees:
- Layer 2 Fees: Users pay fees for transactions processed on the Layer 2 network. These fees are typically lower than Ethereum mainnet fees due to the reduced computational load on the main chain.
- Arbitrum Transaction Fee: A fee is charged for each transaction processed by the sequencer. This fee covers the cost of processing the transaction and ensuring its inclusion in a batch.
L1 Data Fees:
- Posting Batches to Ethereum: Periodically, the state updates from the Layer 2 transactions are posted to the Ethereum mainnet as calldata. This involves a fee, known as the L1 data fee, which accounts for the gas required to publish these state updates on Ethereum.
- Cost Sharing: Because transactions are batched, the fixed costs of posting state updates to Ethereum are spread across multiple transactions, making it more cost-effective for users.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegators:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegators earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegators to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Polygon uses a combination of Proof of Stake (PoS) and the Plasma framework to ensure network security, incentivize participation, and maintain transaction integrity.

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators on Polygon secure the network by staking MATIC tokens. They are selected to validate transactions and produce new blocks based on the number of tokens they have staked. Validators earn rewards in the form of newly minted MATIC tokens and transaction fees for their services.
- Block Production: Validators are responsible for proposing and voting on new blocks. The selected validator proposes a block, and other validators verify and validate it. Validators are incentivized to act honestly and efficiently to earn rewards and avoid penalties.
- Checkpointing: Validators periodically submit checkpoints to the Ethereum main chain, ensuring the security and finality of transactions processed on Polygon. This provides an additional layer of security by leveraging Ethereum’s robustness.
Delegates:
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to trusted validators. Delegates earn a portion of the rewards earned by the validators, incentivizing them to choose reliable and performant validators.
- Shared Rewards: Rewards earned by validators are shared with delegates, based on the proportion of tokens delegated. This system encourages widespread participation and enhances the network’s decentralization.
Economic Security:
- Slashing: Validators can be penalized through a process called slashing if they engage in malicious behavior or fail to perform their duties correctly. This includes double-signing or going offline for extended periods. Slashing results in the loss of a portion of the staked tokens, acting as a strong deterrent against dishonest actions.
- Bond Requirements: Validators are required to bond a significant amount of MATIC tokens to participate in the consensus process, ensuring they have a vested interest in maintaining network security and integrity. Fees on the Polygon Blockchain
Transaction Fees:
- Low Fees: One of Polygon’s main advantages is its low transaction fees compared to the Ethereum main chain. The fees are paid in MATIC tokens and are designed to be affordable to encourage high transaction throughput and user adoption.
- Dynamic Fees: Fees on Polygon can vary depending on network congestion and transaction complexity. However, they remain significantly lower than those on Ethereum, making Polygon an attractive option for users and developers.
Smart Contract Fees: Deployment and Execution Costs: Deploying and interacting with smart contracts on Polygon incurs fees based on the computational resources required. These fees are also paid in MATIC tokens and are much lower than on Ethereum, making it cost-effective for developers to build and maintain decentralized applications (dApps) on Polygon.
Plasma Framework: State Transfers and Withdrawals: The Plasma framework allows for off-chain processing of transactions, which are periodically batched and committed to the Ethereum main chain. Fees associated with these processes are also paid in MATIC tokens, and they help reduce the overall cost of using the network.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) arbitrum, binance_smart_chain, ethereum, polygon is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Aave Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Aave Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	4247.27797	kWh/a

Qualitative information

S.4 Consensus Mechanism

Aave Token is present on the following networks: Avalanche, Binance Smart Chain, Ethereum, Gnosis Chain, Huobi, Near Protocol, Polygon, Solana.

The Avalanche blockchain network employs a unique Proof-of-Stake consensus mechanism called Avalanche Consensus, which involves three interconnected protocols: Snowball, Snowflake, and Avalanche.

Avalanche Consensus Process:

Snowball Protocol:
- Random Sampling: Each validator randomly samples a small, constant-sized subset of other validators.
- Repeated Polling: Validators repeatedly poll the sampled validators to determine the preferred transaction.
- Confidence Counters: Validators maintain confidence counters for each transaction, incrementing them each time a sampled validator supports their preferred transaction.
- Decision Threshold: Once the confidence counter exceeds a pre-defined threshold, the transaction is considered accepted.
Snowflake Protocol:
- Binary Decision: Enhances the Snowball protocol by incorporating a binary decision process. Validators decide between two conflicting transactions.
- Binary Confidence: Confidence counters are used to track the preferred binary decision.
- Finality: When a binary decision reaches a certain confidence level, it becomes final.
Avalanche Protocol:
- DAG Structure: Uses a Directed Acyclic Graph (DAG) structure to organize transactions, allowing for parallel processing and higher throughput.
- Transaction Ordering: Transactions are added to the DAG based on their dependencies, ensuring a consistent order.
- Consensus on DAG: While most Proof-of-Stake Protocols use a Byzantine Fault Tolerant (BFT) consensus, Avalanche uses the Avalanche Consensus, Validators reach consensus on the structure and contents of the DAG through repeated Snowball and Snowflake.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegates: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegates earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegators share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

Gnosis Chain – Consensus Mechanism Gnosis Chain employs a dual-layer structure to balance scalability and security, using Proof of Stake (PoS) for its core consensus and transaction finality.

Core Components:

Two-Layer Structure Layer 1: Gnosis Beacon Chain The Gnosis Beacon Chain operates on a Proof of Stake (PoS) mechanism, acting as the security and consensus backbone. Validators stake GNO tokens on the Beacon Chain and validate transactions, ensuring network security and finality.
Layer 2: Gnosis xDai Chain processes transactions and dApp interactions, providing high-speed, low-cost transactions. Layer 2 transaction data is finalized on the Gnosis Beacon Chain, creating an integrated framework where Layer 1 ensures security and finality, and Layer 2 enhances scalability. Validator Role and Staking Validators on the Gnosis Beacon Chain stake GNO tokens and participate in consensus by validating blocks. This setup ensures that validators have an economic interest in maintaining the security and integrity of both the Beacon Chain (Layer 1) and the xDai Chain (Layer 2). Cross-Layer Security Transactions on Layer 2 are ultimately finalized on Layer 1, providing security and finality to all activities on the Gnosis Chain. This architecture allows Gnosis Chain to combine the speed and cost efficiency of Layer 2 with the security guarantees of a PoS-secured Layer 1, making it suitable for both high-frequency applications and secure asset management.

The Huobi Eco Chain (HECO) blockchain employs a Hybrid-Proof-of-Stake (HPoS) consensus mechanism, combining elements of Proof-of-Stake (PoS) to enhance transaction efficiency and scalability.

Key Features of HECO’s Consensus Mechanism:

Validator Selection: HECO supports up to 21 validators, selected based on their stake in the network.
Transaction Processing: Validators are responsible for processing transactions and adding blocks to the blockchain.
Transaction Finality: The consensus mechanism ensures quick finality, allowing for rapid confirmation of transactions.
Energy Efficiency: By utilizing PoS elements, HECO reduces energy consumption compared to traditional Proof-of-Work systems.

The NEAR Protocol uses a unique consensus mechanism combining Proof of Stake (PoS) and a novel approach called Doomslug, which enables high efficiency, fast transaction processing, and secure finality in its operations.

Core Concepts:

Doomslug and Proof of Stake:
- NEAR’s consensus mechanism primarily revolves around PoS, where validators stake NEAR tokens to participate in securing the network. However, NEAR’s implementation is enhanced with the Doomslug protocol.
- Doomslug allows the network to achieve fast block finality by requiring blocks to be confirmed in two stages. Validators propose blocks in the first step, and finalization occurs when two-thirds of validators approve the block, ensuring rapid transaction confirmation.
Sharding with Nightshade:
- NEAR uses a dynamic sharding technique called Nightshade. This method splits the network into multiple shards, enabling parallel processing of transactions across the network, thus significantly increasing throughput. Each shard processes a portion of transactions, and the outcomes are merged into a single \“snapshot\” block.
- This sharding approach ensures scalability, allowing the network to grow and handle increasing demand efficiently.

Consensus Process:

Validator Selection:
- Validators are selected to propose and validate blocks based on the amount of NEAR tokens staked. This selection process is designed to ensure that only validators with significant stakes and community trust participate in securing the network.
Transaction Finality:
- NEAR achieves transaction finality through its PoS-based system, where validators vote on blocks. Once two-thirds of validators approve a block, it reaches finality under Doomslug, meaning that no forks can alter the confirmed state.
Epochs and Rotation:
- Validators are rotated in epochs to ensure fairness and decentralization. Epochs are intervals in which validators are reshuffled, and new block proposers are selected, ensuring a balance between performance and decentralization.

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for Ethereum that employs a hybrid consensus mechanism. Here’s a detailed explanation of how Polygon achieves consensus:

Core Concepts:

Proof of Stake (PoS):
- Validator Selection: Validators on the Polygon network are selected based on the number of MATIC tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to validators. Delegates share in the rewards earned by validators.
Plasma Chains:
- Off-Chain Scaling: Plasma is a framework for creating child chains that operate alongside the main Ethereum chain. These child chains can process transactions off-chain and submit only the final state to the Ethereum main chain, significantly increasing throughput and reducing congestion.
- Fraud Proofs: Plasma uses a fraud-proof mechanism to ensure the security of off-chain transactions. If a fraudulent transaction is detected, it can be challenged and reverted.

Consensus Process:

Transaction Validation: Transactions are first validated by validators who have staked MATIC tokens. These validators confirm the validity of transactions and include them in blocks.
Block Production:
- Proposing and Voting: Validators propose new blocks based on their staked tokens and participate in a voting process to reach consensus on the next block. The block with the majority of votes is added to the blockchain.
- Checkpointing: Polygon uses periodic checkpointing, where snapshots of the Polygon sidechain are submitted to the Ethereum main chain. This process ensures the security and finality of transactions on the Polygon network.
Plasma Framework:
- Child Chains: Transactions can be processed on child chains created using the Plasma framework. These transactions are validated off-chain and only the final state is submitted to the Ethereum main chain.
- Fraud Proofs: If a fraudulent transaction occurs, it can be challenged within a certain period using fraud proofs. This mechanism ensures the integrity of off-chain transactions.

Security and Economic Incentives:

Incentives for Validators:
- Staking Rewards: Validators earn rewards for staking MATIC tokens and participating in the consensus process. These rewards are distributed in MATIC tokens and are proportional to the amount staked and the performance of the validator.
- Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This provides an additional financial incentive to maintain the network’s integrity and efficiency.
Delegation: Shared Rewards: Delegators earn a share of the rewards earned by the validators they delegate to. This encourages more token holders to participate in securing the network by choosing reliable validators.
Economic Security: Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. This penalty, known as slashing, involves the loss of a portion of their staked tokens, ensuring that validators act in the best interest of the network.

Solana uses a unique combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high throughput, low latency, and robust security.

Core Concepts:

Proof of History (PoH):
- Time-Stamped Transactions: PoH is a cryptographic technique that timestamps transactions, creating a historical record that proves that an event has occurred at a specific moment in time.
- Verifiable Delay Function: PoH uses a Verifiable Delay Function (VDF) to generate a unique hash that includes the transaction and the time it was processed. This sequence of hashes provides a verifiable order of events, enabling the network to efficiently agree on the sequence of transactions.
Proof of Stake (PoS):
- Validator Selection: Validators are chosen to produce new blocks based on the number of SOL tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders can delegate their SOL tokens to validators, earning rewards proportional to their stake while enhancing the network’s security.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by validators. Each transaction is validated to ensure it meets the network’s criteria, such as having correct signatures and sufficient funds.
PoH Sequence Generation: A validator generates a sequence of hashes using PoH, each containing a timestamp and the previous hash. This process creates a historical record of transactions, establishing a cryptographic clock for the network.
Block Production: The network uses PoS to select a leader validator based on their stake. The leader is responsible for bundling the validated transactions into a block. The leader validator uses the PoH sequence to order transactions within the block, ensuring that all transactions are processed in the correct order.
Consensus and Finalization: Other validators verify the block produced by the leader validator. They check the correctness of the PoH sequence and validate the transactions within the block. Once the block is verified, it is added to the blockchain. Validators sign off on the block, and it is considered finalized.

Security and Economic Incentives:

Incentives for Validators:
- Block Rewards: Validators earn rewards for producing and validating blocks. These rewards are distributed in SOL tokens and are proportional to the validator’s stake and performance.
- Transaction Fees: Validators also earn transaction fees from the transactions included in the blocks they produce. These fees provide an additional incentive for validators to process transactions efficiently.
Security:
- Staking: Validators must stake SOL tokens to participate in the consensus process. This staking acts as collateral, incentivizing validators to act honestly. If a validator behaves maliciously or fails to perform, they risk losing their staked tokens.
- Delegated Staking: Token holders can delegate their SOL tokens to validators, enhancing network security and decentralization. Delegates share in the rewards and are incentivized to choose reliable validators.
Economic Penalties: Slashing: Validators can be penalized for malicious behavior, such as double-signing or producing invalid blocks. This penalty, known as slashing, results in the loss of a portion of the staked tokens, discouraging dishonest actions.

S.5 Incentive Mechanisms and Applicable Fees

Aave Token is present on the following networks: Avalanche, Binance Smart Chain, Ethereum, Gnosis Chain, Huobi, Near Protocol, Polygon, Solana.

Validators:

Staking: Validators on the Avalanche network are required to stake AVAX tokens. The amount staked influences their probability of being selected to propose or validate new blocks. Rewards: Validators earn rewards for their participation in the consensus process. These rewards are proportional to the amount of AVAX staked and their uptime and performance in validating transactions. Delegation: Validators can also accept delegations from other token holders. Delegates share in the rewards based on the amount they delegate, which incentivizes smaller holders to participate indirectly in securing the network.
Economic Incentives:

Block Rewards: Validators receive block rewards for proposing and validating blocks. These rewards are distributed from the network’s inflationary issuance of AVAX tokens. Transaction Fees: Validators also earn a portion of the transaction fees paid by users. This includes fees for simple transactions, smart contract interactions, and the creation of new assets on the network.
Penalties:
- Slashing: Unlike some other PoS systems, Avalanche does not employ slashing (i.e., the confiscation of staked tokens) as a penalty for misbehavior. Instead, the network relies on the financial disincentive of lost future rewards for validators who are not consistently online or act maliciously.
- Uptime Requirements: Validators must maintain a high level of uptime and correctly validate transactions to continue earning rewards. Poor performance or malicious actions result in missed rewards, providing a strong economic incentive to act honestly.

Fees on the Avalanche Blockchain

Transaction Fees:
- Dynamic Fees: Transaction fees on Avalanche are dynamic, varying based on network demand and the complexity of the transactions. This ensures that fees remain fair and proportional to the network’s usage.
- Fee Burning: A portion of the transaction fees is burned, permanently removing them from circulation. This deflationary mechanism helps to balance the inflation from block rewards and incentivizes token holders by potentially increasing the value of AVAX over time.
Smart Contract Fees: Execution Costs: Fees for deploying and interacting with smart contracts are determined by the computational resources required. These fees ensure that the network remains efficient and that resources are used responsibly.
Asset Creation Fees: New Asset Creation: There are fees associated with creating new assets (tokens) on the Avalanche network. These fees help to prevent spam and ensure that only serious projects use the network’s resources.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegates.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegates:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegates to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Incentive Mechanisms:

Staking Rewards for Validators GNO Rewards: Validators earn staking rewards in GNO tokens for their participation in consensus and securing the network.
Delegation Model: GNO holders who do not operate validator nodes can delegate their GNO tokens to validators, allowing them to share in staking rewards and encouraging broader participation in network security.
Dual-Token Model GNO: Used for staking, governance, and validator rewards, GNO aligns long-term network security incentives with token holders’ economic interests.
xDai: Serves as the primary transaction currency, providing stable and low-cost transactions. The use of a stable token (xDai) for fees minimizes volatility and offers predictable costs for users and developers.

Applicable Fees:

The Huobi Eco Chain (HECO) blockchain employs a Hybrid-Proof-of-Stake (HPoS) consensus mechanism, combining elements of Proof-of-Stake (PoS) to enhance transaction efficiency and scalability.

Incentive Mechanism:

Validator Rewards: Validators are selected based on their stake in the network. They process transactions and add blocks to the blockchain. Validators receive rewards in the form of transaction fees for their role in maintaining the blockchain’s integrity.
Staking Participation: Users can stake Huobi Token (HT) to become validators or delegate their tokens to existing validators. Staking helps secure the network and, in return, participants receive a portion of the transaction fees as rewards.

Applicable Fees:

Transaction Fees (Gas Fees): Users pay gas fees in HT tokens to execute transactions and interact with smart contracts on the HECO network. These fees compensate validators for processing and validating transactions.
Smart Contract Execution Fees: Deploying and interacting with smart contracts incur additional fees, which are also paid in HT tokens. These fees cover the computational resources required to execute contract code.

NEAR Protocol employs several economic mechanisms to secure the network and incentivize participation.

Incentive Mechanisms to Secure Transactions:

Staking Rewards: Validators and delegators secure the network by staking NEAR tokens. Validators earn around 5% annual inflation, with 90% of newly minted tokens distributed as staking rewards. Validators propose blocks, validate transactions, and receive a share of these rewards based on their staked tokens. Delegators earn rewards proportional to their delegation, encouraging broad participation.
Delegation: Token holders can delegate their NEAR tokens to validators to increase the validator’s stake and improve the chances of being selected to validate transactions. Delegates share in the validator’s rewards based on their delegated tokens, incentivizing users to support reliable validators.
Slashing and Economic Penalties: Validators face penalties for malicious behavior, such as failing to validate correctly or acting dishonestly. The slashing mechanism enforces security by deducting a portion of their staked tokens, ensuring validators follow the network’s best interests.
Epoch Rotation and Validator Selection: Validators are rotated regularly during epochs to ensure fairness and prevent centralization. Each epoch reshuffles validators, allowing the protocol to balance decentralization with performance.

Fees on the NEAR Blockchain:

Transaction Fees: Users pay fees in NEAR tokens for transaction processing, which are burned to reduce the total circulating supply, introducing a potential deflationary effect over time. Validators also receive a portion of transaction fees as additional rewards, providing an ongoing incentive for network maintenance.
Storage Fees: NEAR Protocol charges storage fees based on the amount of blockchain storage consumed by accounts, contracts, and data. This requires users to hold NEAR tokens as a deposit proportional to their storage usage, ensuring the efficient use of network resources.
Redistribution and Burning: A portion of the transaction fees (burned NEAR tokens) reduces the overall supply, while the rest is distributed to validators as compensation for their work. The burning mechanism helps maintain long-term economic sustainability and potential value appreciation for NEAR holders.
Reserve Requirement: Users must maintain a minimum account balance and reserves for data storage, encouraging efficient use of resources and preventing spam attacks.

Polygon uses a combination of Proof of Stake (PoS) and the Plasma framework to ensure network security, incentivize participation, and maintain transaction integrity.

Incentive Mechanisms:

1. Validators:

Staking Rewards: Validators on Polygon secure the network by staking MATIC tokens. They are selected to validate transactions and produce new blocks based on the number of tokens they have staked. Validators earn rewards in the form of newly minted MATIC tokens and transaction fees for their services.
Block Production: Validators are responsible for proposing and voting on new blocks. The selected validator proposes a block, and other validators verify and validate it. Validators are incentivized to act honestly and efficiently to earn rewards and avoid penalties.
Checkpointing: Validators periodically submit checkpoints to the Ethereum main chain, ensuring the security and finality of transactions processed on Polygon. This provides an additional layer of security by leveraging Ethereum’s robustness.

2. Delegates:

Delegation: Token holders who do not wish to run a validator node can delegate their MATIC tokens to trusted validators. Delegates earn a portion of the rewards earned by the validators, incentivizing them to choose reliable and performant validators.
Shared Rewards: Rewards earned by validators are shared with delegates, based on the proportion of tokens delegated. This system encourages widespread participation and enhances the network’s decentralization.

3. Economic Security:

Slashing: Validators can be penalized through a process called slashing if they engage in malicious behavior or fail to perform their duties correctly. This includes double-signing or going offline for extended periods. Slashing results in the loss of a portion of the staked tokens, acting as a strong deterrent against dishonest actions.
Bond Requirements: Validators are required to bond a significant amount of MATIC tokens to participate in the consensus process, ensuring they have a vested interest in maintaining network security and integrity. Fees on the Polygon Blockchain

4. Transaction Fees:

Low Fees: One of Polygon’s main advantages is its low transaction fees compared to the Ethereum main chain. The fees are paid in MATIC tokens and are designed to be affordable to encourage high transaction throughput and user adoption.
Dynamic Fees: Fees on Polygon can vary depending on network congestion and transaction complexity. However, they remain significantly lower than those on Ethereum, making Polygon an attractive option for users and developers.

5. Smart Contract Fees:

Deployment and Execution Costs: Deploying and interacting with smart contracts on Polygon incurs fees based on the computational resources required. These fees are also paid in MATIC tokens and are much lower than on Ethereum, making it cost-effective for developers to build and maintain decentralized applications (dApps) on Polygon.

6. Plasma Framework:

State Transfers and Withdrawals: The Plasma framework allows for off-chain processing of transactions, which are periodically batched and committed to the Ethereum main chain. Fees associated with these processes are also paid in MATIC tokens, and they help reduce the overall cost of using the network.

Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to secure its network and validate transactions.

Incentive Mechanisms:

1. Validators:

Staking Rewards: Validators are chosen based on the number of SOL tokens they have staked. They earn rewards for producing and validating blocks, which are distributed in SOL. The more tokens staked, the higher the chances of being selected to validate transactions and produce new blocks.
Transaction Fees: Validators earn a portion of the transaction fees paid by users for the transactions they include in the blocks. This provides an additional financial incentive for validators to process transactions efficiently and maintain the network’s integrity.

2. Delegates:

Delegated Staking: Token holders who do not wish to run a validator node can delegate their SOL tokens to a validator. In return, delegates share in the rewards earned by the validators. This encourages widespread participation in securing the network and ensures decentralization.

3. Economic Security:

Slashing: Validators can be penalized for malicious behavior, such as producing invalid blocks or being frequently offline. This penalty, known as slashing, involves the loss of a portion of their staked tokens. Slashing deters dishonest actions and ensures that validators act in the best interest of the network.
Opportunity Cost: By staking SOL tokens, validators and delegates lock up their tokens, which could otherwise be used or sold. This opportunity cost incentivizes participants to act honestly to earn rewards and avoid penalties. Fees Applicable on the Solana Blockchain

Transaction Fees:

1. Low and Predictable Fees:

Solana is designed to handle a high throughput of transactions, which helps keep fees low and predictable. The average transaction fee on Solana is significantly lower compared to other blockchains like Ethereum.

2. Fee Structure:

Fees are paid in SOL and are used to compensate validators for the resources they expend to process transactions. This includes computational power and network bandwidth.

3. Rent Fees:

State Storage: Solana charges rent fees for storing data on the blockchain. These fees are designed to discourage inefficient use of state storage and encourage developers to clean up unused state. Rent fees help maintain the efficiency and performance of the network.

4. Smart Contract Fees:

Execution Costs: Similar to transaction fees, fees for deploying and interacting with smart contracts on Solana are based on the computational resources required. This ensures that users are charged proportionally for the resources they consume.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) avalanche, binance_smart_chain, ethereum, gnosis_chain, huobi, near_protocol, polygon, solana is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

SHIBA INU

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	SHIBA INU	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	2895.36852	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

Pepe

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Pepe	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	2753.99033	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

Ondo

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Ondo	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	2125.11746	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

Render Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Render Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	985.96679	kWh/a

Qualitative information

S.4 Consensus Mechanism

Render Token is present on the following networks: Ethereum, Solana.

Solana uses a unique combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high throughput, low latency, and robust security.

Core Concepts:

Proof of History (PoH):
- Time-Stamped Transactions: PoH is a cryptographic technique that timestamps transactions, creating a historical record that proves that an event has occurred at a specific moment in time.
- Verifiable Delay Function: PoH uses a Verifiable Delay Function (VDF) to generate a unique hash that includes the transaction and the time it was processed. This sequence of hashes provides a verifiable order of events, enabling the network to efficiently agree on the sequence of transactions.
Proof of Stake (PoS):
- Validator Selection: Validators are chosen to produce new blocks based on the number of SOL tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders can delegate their SOL tokens to validators, earning rewards proportional to their stake while enhancing the network’s security.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by validators. Each transaction is validated to ensure it meets the network’s criteria, such as having correct signatures and sufficient funds.
PoH Sequence Generation: A validator generates a sequence of hashes using PoH, each containing a timestamp and the previous hash. This process creates a historical record of transactions, establishing a cryptographic clock for the network.
Block Production: The network uses PoS to select a leader validator based on their stake. The leader is responsible for bundling the validated transactions into a block. The leader validator uses the PoH sequence to order transactions within the block, ensuring that all transactions are processed in the correct order.
Consensus and Finalization: Other validators verify the block produced by the leader validator. They check the correctness of the PoH sequence and validate the transactions within the block. Once the block is verified, it is added to the blockchain. Validators sign off on the block, and it is considered finalized.

Security and Economic Incentives:

Incentives for Validators:
- Block Rewards: Validators earn rewards for producing and validating blocks. These rewards are distributed in SOL tokens and are proportional to the validator’s stake and performance.
- Transaction Fees: Validators also earn transaction fees from the transactions included in the blocks they produce. These fees provide an additional incentive for validators to process transactions efficiently.
Security:
- Staking: Validators must stake SOL tokens to participate in the consensus process. This staking acts as collateral, incentivizing validators to act honestly. If a validator behaves maliciously or fails to perform, they risk losing their staked tokens.
- Delegated Staking: Token holders can delegate their SOL tokens to validators, enhancing network security and decentralization. Delegates share in the rewards and are incentivized to choose reliable validators.
Economic Penalties: Slashing: Validators can be penalized for malicious behavior, such as double-signing or producing invalid blocks. This penalty, known as slashing, results in the loss of a portion of the staked tokens, discouraging dishonest actions.

S.5 Incentive Mechanisms and Applicable Fees

Render Token is present on the following networks: Ethereum, Solana.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to secure its network and validate transactions.

Incentive Mechanisms:

Validators:
- Staking Rewards: Validators are chosen based on the number of SOL tokens they have staked. They earn rewards for producing and validating blocks, which are distributed in SOL. The more tokens staked, the higher the chances of being selected to validate transactions and produce new blocks.
- Transaction Fees: Validators earn a portion of the transaction fees paid by users for the transactions they include in the blocks. This provides an additional financial incentive for validators to process transactions efficiently and maintain the network’s integrity.
Delegates:
- Delegated Staking: Token holders who do not wish to run a validator node can delegate their SOL tokens to a validator. In return, delegates share in the rewards earned by the validators. This encourages widespread participation in securing the network and ensures decentralization.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior, such as producing invalid blocks or being frequently offline. This penalty, known as slashing, involves the loss of a portion of their staked tokens. Slashing deters dishonest actions and ensures that validators act in the best interest of the network.
- Opportunity Cost: By staking SOL tokens, validators and delegates lock up their tokens, which could otherwise be used or sold. This opportunity cost incentivizes participants to act honestly to earn rewards and avoid penalties. Fees Applicable on the Solana Blockchain

Transaction Fees:

Low and Predictable Fees: Solana is designed to handle a high throughput of transactions, which helps keep fees low and predictable. The average transaction fee on Solana is significantly lower compared to other blockchains like Ethereum.
Fee Structure: Fees are paid in SOL and are used to compensate validators for the resources they expend to process transactions. This includes computational power and network bandwidth.
Rent Fees: State Storage: Solana charges rent fees for storing data on the blockchain. These fees are designed to discourage inefficient use of state storage and encourage developers to clean up unused state. Rent fees help maintain the efficiency and performance of the network.
Smart Contract Fees: Execution Costs: Similar to transaction fees, fees for deploying and interacting with smart contracts on Solana are based on the computational resources required. This ensures that users are charged proportionally for the resources they consume.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) ethereum, solana is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Arbitrum

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Arbitrum	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	972.48534	kWh/a

Qualitative information

S.4 Consensus Mechanism

Arbitrum is present on the following networks: Arbitrum, Ethereum.

Core Components:

Sequencer: Orders transactions and creates batches for processing.
Bridge: Facilitates asset transfers between Arbitrum and Ethereum.
Fraud Proofs: Protect against invalid transactions through an interactive verification process.

Verification Process:

Transaction Submission: Users submit transactions to the Arbitrum Sequencer, which orders and batches them.
State Commitment: These batches are submitted to Ethereum with a state commitment.
Challenge Period: Validators have a specific period to challenge the state if they suspect fraud.
Dispute Resolution: If a challenge occurs, the dispute is resolved through an iterative process to identify the fraudulent transaction. The final operation is executed on Ethereum to determine the correct state.
Rollback and Penalties: If fraud is proven, the state is rolled back, and the dishonest party is penalized.

S.5 Incentive Mechanisms and Applicable Fees

Arbitrum is present on the following networks: Arbitrum, Ethereum.

Arbitrum One, a Layer 2 scaling solution for Ethereum, employs several incentive mechanisms to ensure the security and integrity of transactions on its network. The key mechanisms include:

Validators and Sequencers:
- Sequencers are responsible for ordering transactions and creating batches that are processed off-chain. They play a critical role in maintaining the efficiency and throughput of the network.
- Validators monitor the sequencers’ actions and ensure that transactions are processed correctly. Validators verify the state transitions and ensure that no invalid transactions are included in the batches.
Fraud Proofs:
- Assumption of Validity: Transactions processed off-chain are assumed to be valid. This allows for quick transaction finality and high throughput.
- Challenge Period: There is a predefined period during which anyone can challenge the validity of a transaction by submitting a fraud proof. This mechanism acts as a deterrent against malicious behavior.
- Dispute Resolution: If a challenge is raised, an interactive verification process is initiated to pinpoint the exact step where fraud occurred. If the challenge is valid, the fraudulent transaction is reverted, and the dishonest actor is penalized.
Economic Incentives:
- Rewards for Honest Behavior: Participants in the network, such as validators and sequencers, are incentivized through rewards for performing their duties honestly and efficiently. These rewards come from transaction fees and potentially other protocol incentives.
- Penalties for Malicious Behavior: Participants who engage in dishonest behavior or submit invalid transactions are penalized. This can include slashing of staked tokens or other forms of economic penalties, which serve to discourage malicious actions.

Fees on the Arbitrum One Blockchain

Transaction Fees:
- Layer 2 Fees: Users pay fees for transactions processed on the Layer 2 network. These fees are typically lower than Ethereum mainnet fees due to the reduced computational load on the main chain.
- Arbitrum Transaction Fee: A fee is charged for each transaction processed by the sequencer. This fee covers the cost of processing the transaction and ensuring its inclusion in a batch.
L1 Data Fees:
- Posting Batches to Ethereum: Periodically, the state updates from the Layer 2 transactions are posted to the Ethereum mainnet as calldata. This involves a fee, known as the L1 data fee, which accounts for the gas required to publish these state updates on Ethereum.
- Cost Sharing: Because transactions are batched, the fixed costs of posting state updates to Ethereum are spread across multiple transactions, making it more cost-effective for users.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) arbitrum, ethereum is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Graph Token

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Graph Token	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	635.45607	kWh/a

Qualitative information

S.4 Consensus Mechanism

Graph Token is present on the following networks: Arbitrum, Ethereum.

Core Components:

Sequencer: Orders transactions and creates batches for processing.
Bridge: Facilitates asset transfers between Arbitrum and Ethereum.
Fraud Proofs: Protect against invalid transactions through an interactive verification process.

Verification Process:

Transaction Submission: Users submit transactions to the Arbitrum Sequencer, which orders and batches them.
State Commitment: These batches are submitted to Ethereum with a state commitment.
Challenge Period: Validators have a specific period to challenge the state if they suspect fraud.
Dispute Resolution: If a challenge occurs, the dispute is resolved through an iterative process to identify the fraudulent transaction. The final operation is executed on Ethereum to determine the correct state.
Rollback and Penalties: If fraud is proven, the state is rolled back, and the dishonest party is penalized.

Security and Efficiency: The combination of the Sequencer, bridge, and interactive fraud proofs ensures that the system remains secure and efficient. By minimizing on-chain data and leveraging off-chain computations, Arbitrum can provide high throughput and low fees.

S.5 Incentive Mechanisms and Applicable Fees

Graph Token is present on the following networks: Arbitrum, Ethereum.

Arbitrum One, a Layer 2 scaling solution for Ethereum, employs several incentive mechanisms to ensure the security and integrity of transactions on its network. The key mechanisms include:

Validators and Sequencers:
- Sequencers are responsible for ordering transactions and creating batches that are processed off-chain. They play a critical role in maintaining the efficiency and throughput of the network.
- Validators monitor the sequencers’ actions and ensure that transactions are processed correctly. Validators verify the state transitions and ensure that no invalid transactions are included in the batches.
Fraud Proofs:
- Assumption of Validity: Transactions processed off-chain are assumed to be valid. This allows for quick transaction finality and high throughput.
- Challenge Period: There is a predefined period during which anyone can challenge the validity of a transaction by submitting a fraud proof. This mechanism acts as a deterrent against malicious behavior.
- Dispute Resolution: If a challenge is raised, an interactive verification process is initiated to pinpoint the exact step where fraud occurred. If the challenge is valid, the fraudulent transaction is reverted, and the dishonest actor is penalized.
Economic Incentives:
- Rewards for Honest Behavior: Participants in the network, such as validators and sequencers, are incentivized through rewards for performing their duties honestly and efficiently. These rewards come from transaction fees and potentially other protocol incentives.
- Penalties for Malicious Behavior: Participants who engage in dishonest behavior or submit invalid transactions are penalized. This can include slashing of staked tokens or other forms of economic penalties, which serve to discourage malicious actions.

Fees on the Arbitrum One Blockchain

Transaction Fees:
- Layer 2 Fees: Users pay fees for transactions processed on the Layer 2 network. These fees are typically lower than Ethereum mainnet fees due to the reduced computational load on the main chain.
- Arbitrum Transaction Fee: A fee is charged for each transaction processed by the sequencer. This fee covers the cost of processing the transaction and ensuring its inclusion in a batch.
L1 Data Fees:
- Posting Batches to Ethereum: Periodically, the state updates from the Layer 2 transactions are posted to the Ethereum mainnet as calldata. This involves a fee, known as the L1 data fee, which accounts for the gas required to publish these state updates on Ethereum.
- Cost Sharing: Because transactions are batched, the fixed costs of posting state updates to Ethereum are spread across multiple transactions, making it more cost-effective for users.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

OFFICIAL TRUMP

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	OFFICIAL TRUMP	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	501.03209	kWh/a

Qualitative information

S.4 Consensus Mechanism

Solana uses a unique combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high throughput, low latency, and robust security.

Core Concepts:

Proof of History (PoH):
- Time-Stamped Transactions: PoH is a cryptographic technique that timestamps transactions, creating a historical record that proves that an event has occurred at a specific moment in time.
- Verifiable Delay Function: PoH uses a Verifiable Delay Function (VDF) to generate a unique hash that includes the transaction and the time it was processed. This sequence of hashes provides a verifiable order of events, enabling the network to efficiently agree on the sequence of transactions.
Proof of Stake (PoS):
- Validator Selection: Validators are chosen to produce new blocks based on the number of SOL tokens they have staked. The more tokens staked, the higher the chance of being selected to validate transactions and produce new blocks.
- Delegation: Token holders can delegate their SOL tokens to validators, earning rewards proportional to their stake while enhancing the network’s security.

Consensus Process:

Transaction Validation: Transactions are broadcast to the network and collected by validators. Each transaction is validated to ensure it meets the network’s criteria, such as having correct signatures and sufficient funds.
PoH Sequence Generation: A validator generates a sequence of hashes using PoH, each containing a timestamp and the previous hash. This process creates a historical record of transactions, establishing a cryptographic clock for the network.
Block Production: The network uses PoS to select a leader validator based on their stake. The leader is responsible for bundling the validated transactions into a block. The leader validator uses the PoH sequence to order transactions within the block, ensuring that all transactions are processed in the correct order.
Consensus and Finalization: Other validators verify the block produced by the leader validator. They check the correctness of the PoH sequence and validate the transactions within the block. Once the block is verified, it is added to the blockchain. Validators sign off on the block, and it is considered finalized.

Security and Economic Incentives:

Incentives for Validators:
- Block Rewards: Validators earn rewards for producing and validating blocks. These rewards are distributed in SOL tokens and are proportional to the validator’s stake and performance.
- Transaction Fees: Validators also earn transaction fees from the transactions included in the blocks they produce. These fees provide an additional incentive for validators to process transactions efficiently.
Security:
- Staking: Validators must stake SOL tokens to participate in the consensus process. This staking acts as collateral, incentivizing validators to act honestly. If a validator behaves maliciously or fails to perform, they risk losing their staked tokens.
- Delegated Staking: Token holders can delegate their SOL tokens to validators, enhancing network security and decentralization. Delegates share in the rewards and are incentivized to choose reliable validators.
Economic Penalties: Slashing: Validators can be penalized for malicious behavior, such as double-signing or producing invalid blocks. This penalty, known as slashing, results in the loss of a portion of the staked tokens, discouraging dishonest actions.

S.5 Incentive Mechanisms and Applicable Fees

Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to secure its network and validate transactions.

Incentive Mechanisms:

1. Validators:

Staking Rewards: Validators are chosen based on the number of SOL tokens they have staked. They earn rewards for producing and validating blocks, which are distributed in SOL. The more tokens staked, the higher the chances of being selected to validate transactions and produce new blocks.
Transaction Fees: Validators earn a portion of the transaction fees paid by users for the transactions they include in the blocks. This provides an additional financial incentive for validators to process transactions efficiently and maintain the network’s integrity.

2. Delegates:

Delegated Staking: Token holders who do not wish to run a validator node can delegate their SOL tokens to a validator. In return, delegates share in the rewards earned by the validators. This encourages widespread participation in securing the network and ensures decentralization.

3. Economic Security:

Slashing: Validators can be penalized for malicious behavior, such as producing invalid blocks or being frequently offline. This penalty, known as slashing, involves the loss of a portion of their staked tokens. Slashing deters dishonest actions and ensures that validators act in the best interest of the network.
Opportunity Cost: By staking SOL tokens, validators and delegates lock up their tokens, which could otherwise be used or sold. This opportunity cost incentivizes participants to act honestly to earn rewards and avoid penalties. Fees Applicable on the Solana Blockchain

Transaction Fees:

1. Low and Predictable Fees:

2. Fee Structure:

Fees are paid in SOL and are used to compensate validators for the resources they expend to process transactions. This includes computational power and network bandwidth.

3. Rent Fees:

4. Smart Contract Fees:

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) solana is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the etwork is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

FLOKI

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	FLOKI	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	480.77686	kWh/a

Qualitative information

S.4 Consensus Mechanism

FLOKI is present on the following networks: Binance Smart Chain, Ethereum.

Core Components:

Validators (so-called “Cabinet Members”): Validators on BSC are responsible for producing new blocks, validating transactions, and maintaining the network’s security. To become a validator, an entity must stake a significant amount of BNB (Binance Coin). Validators are selected through staking and voting by token holders. There are 21 active validators at any given time, rotating to ensure decentralization and security.
Delegates: Token holders who do not wish to run validator nodes can delegate their BNB tokens to validators. This delegation helps validators increase their stake and improves their chances of being selected to produce blocks. Delegates earn a share of the rewards that validators receive, incentivizing broad participation in network security.
Candidates: Candidates are nodes that have staked the required amount of BNB and are in the pool waiting to become validators. They are essentially potential validators who are not currently active but can be elected to the validator set through community voting. Candidates play a crucial role in ensuring there is always a sufficient pool of nodes ready to take on validation tasks, thus maintaining network resilience and decentralization. Consensus Process
Validator Selection: Validators are chosen based on the amount of BNB staked and votes received from delegates. The more BNB staked and votes received, the higher the chance of being selected to validate transactions and produce new blocks. The selection process involves both the current validators and the pool of candidates, ensuring a dynamic and secure rotation of nodes.
Block Production: The selected validators take turns producing blocks in a PoA-like manner, ensuring that blocks are generated quickly and efficiently. Validators validate transactions, add them to new blocks, and broadcast these blocks to the network.
Transaction Finality: BSC achieves fast block times of around 3 seconds and quick transaction finality. This is achieved through the efficient PoSA mechanism that allows validators to rapidly reach consensus. Security and Economic Incentives
Staking: Validators are required to stake a substantial amount of BNB, which acts as collateral to ensure their honest behavior. This staked amount can be slashed if validators act maliciously. Staking incentivizes validators to act in the network’s best interest to avoid losing their staked BNB.
Delegation and Rewards: Delegators earn rewards proportional to their stake in validators. This incentivizes them to choose reliable validators and participate in the network’s security. Validators and delegators share transaction fees as rewards, which provides continuous economic incentives to maintain network security and performance.
Transaction Fees: BSC employs low transaction fees, paid in BNB, making it cost-effective for users. These fees are collected by validators as part of their rewards, further incentivizing them to validate transactions accurately and efficiently.

S.5 Incentive Mechanisms and Applicable Fees

FLOKI is present on the following networks: Binance Smart Chain, Ethereum.

Binance Smart Chain (BSC) uses the Proof of Staked Authority (PoSA) consensus mechanism to ensure network security and incentivize participation from validators and delegators.

Incentive Mechanisms

Validators:
- Staking Rewards: Validators must stake a significant amount of BNB to participate in the consensus process. They earn rewards in the form of transaction fees and block rewards.
- Selection Process: Validators are selected based on the amount of BNB staked and the votes received from delegators. The more BNB staked and votes received, the higher the chances of being selected to validate transactions and produce new blocks.
Delegates:
- Delegated Staking: Token holders can delegate their BNB to validators. This delegation increases the validator’s total stake and improves their chances of being selected to produce blocks.
- Shared Rewards: Delegates earn a portion of the rewards that validators receive. This incentivizes token holders to participate in the network’s security and decentralization by choosing reliable validators.
Candidates: Pool of Potential Validators: Candidates are nodes that have staked the required amount of BNB and are waiting to become active validators. They ensure that there is always a sufficient pool of nodes ready to take on validation tasks, maintaining network resilience.
Economic Security:
- Slashing: Validators can be penalized for malicious behavior or failure to perform their duties. Penalties include slashing a portion of their staked tokens, ensuring that validators act in the best interest of the network.
- Opportunity Cost: Staking requires validators and delegators to lock up their BNB tokens, providing an economic incentive to act honestly to avoid losing their staked assets.

Fees on the Binance Smart Chain

Transaction Fees:
- Low Fees: BSC is known for its low transaction fees compared to other blockchain networks. These fees are paid in BNB and are essential for maintaining network operations and compensating validators.
- Dynamic Fee Structure: Transaction fees can vary based on network congestion and the complexity of the transactions. However, BSC ensures that fees remain significantly lower than those on the Ethereum mainnet.
Block Rewards: Incentivizing Validators: Validators earn block rewards in addition to transaction fees. These rewards are distributed to validators for their role in maintaining the network and processing transactions.
Cross-Chain Fees: Interoperability Costs: BSC supports cross-chain compatibility, allowing assets to be transferred between Binance Chain and Binance Smart Chain. These cross-chain operations incur minimal fees, facilitating seamless asset transfers and improving user experience.
Smart Contract Fees: Deploying and interacting with smart contracts on BSC involves paying fees based on the computational resources required. These fees are also paid in BNB and are designed to be cost-effective, encouraging developers to build on the BSC platform.

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

To determine the energy consumption of a token, the energy consumption of the network(s) binance_smart_chain, ethereum is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts.

Dao Maker

Quantitative information

Field	Value	Unit
S.1 Name	CHECKSIG S.R.L. SOCIETA’ BENEFIT	/
S.2 Relevant legal entity identifier	8156006C715AAACC5D19	/
S.3 Name of the crypto-asset	Dao Maker	/
S.6 Beginning of the period to which the disclosure relates	2024-11-19	/
S.7 End of the period to which the disclosure relates	2025-11-19	/
S.8 Energy consumption	61.18507	kWh/a

Qualitative information

S.4 Consensus Mechanism

S.5 Incentive Mechanisms and Applicable Fees

This system aims to increase security by aligning incentives while making the crypto-asset’s fee structure more predictable and deflationary during high network activity.

S.9 Energy consumption sources and methodologies

The energy consumption of this asset is aggregated across multiple components:

This report was provided by Crypto Risk Metrics