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Glossary entry · Attribution and evidence

Scrap Rate

The share of AI spend that went into work that failed its quality check, was abandoned partway, or could not be tied to a task at all. A term from the Tokenomics Foundation's draft AI value data layer (November 2026), which counts such spend as scrap rather than dropping it.

Why it matters

Failed and abandoned runs are paid for like successful ones. Leaving them out flatters every unit cost. Scrap rate makes that waste visible, and keeping scrap in the numerator is what makes cost per successful outcome honest.

How it is measured

Spend on tasks that failed their technical quality check, plus spend on abandoned sessions and tasks, plus usage that cannot be tied to a task, divided by total spend for the workload in the period. The organisation decides what counts as a pass.

The term comes from the Tokenomics Foundation's draft AI value data layer proposal (Shawn Alpay, 5 November 2026, CC BY 4.0). The proposal is a draft, not an adopted standard.

Scrap rate is not the same as attribution coverage. Scrap rate asks how much of the bill was wasted in production. Attribution coverage asks how much of the bill is linked to a baseline, an owner and evidence of change. A workload can have low scrap and no evidence of value, because every task passes and nobody measured the outcome, or high scrap and full coverage. Only the part of scrap that cannot be tied to a task overlaps with unattributed spend. Report the two side by side.

Scrap rate sits in Layer 2, Output Quality, of this site's five layers. A rising scrap rate is a prompt to look at routing, retries, loop limits and the quality check itself before cutting the budget.