Traders buy NFTs either via the Blur aggregator or Blur's own marketplace from creators & and other users. When trading via Blur's own marketplace, traders pay royalty fees to the creators (supply-side fees).

Blur is a non-custodial NFT marketplace and a marketplace aggregator protocol built on Ethereum. Blur was founded by a pseudonymous team and launched in 2022.

BLUR tokenholders own and govern the protocol. They currently do not take a cut of the royalty fees paid by traders (revenue). Blur's investors include Paradigm, eGirl Capital, etc.

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Blur

# Blur Supply-side fees Methodology

## 1. Overview

Supply-side fees for Blur represent royalty payments made to NFT creators and rights holders during trades on the Blur marketplace ecosystem. This metric captures the total USD value of fees that flow from buyers to the supply side (creators/rights holders) rather than to the marketplace itself. The calculation aggregates royalty fees across Blur's multiple trading mechanisms: native v1 and v2 exchanges, Seaport-based trades executed through Blur's zone, and Blend lending protocol collateral trades.

## 2. Data sources

The calculation relies on several types of blockchain and external data:

- **Blur Exchange v1 events**: Parsed `OrdersMatched` events from Blur's original exchange contract containing embedded royalty fee structures in sell order arrays
- **Blur Exchange v2 events**: Parsed execution events (`Execution721TakerFeePacked`, `Execution721MakerFeePacked`, `Execution721Packed`, `Execution`) with bitwise-encoded fee and trade data  
- **Seaport protocol events**: Parsed `OrderFulfilled` events from OpenSea's Seaport contracts v1.1 through v1.6, filtered for trades executed through Blur's zone
- **Blend lending protocol calls**: Parsed function calls (`buyLockedETH`, `buyLocked`, `buyToBorrowLocked`, `buyToBorrowLockedETH`) representing purchases of NFTs locked as loan collateral
- **Ethereum transaction records**: Transaction-level data used to identify actual NFT buyers when intermediary contracts are involved
- **End-of-day token price feeds**: Price data for converting native token amounts to USD values
- **Token metadata**: Decimal precision and address information for proper token amount normalization

## 3. Step-by-step calculation

### Component A: Blur v1 exchange royalty fees
- **Purpose**: Extract royalty fees from trades on Blur's original exchange
- **Logic**: Process `OrdersMatched` events from the Blur Exchange v1 contract. For each trade, extract the sell order's fees array which contains royalty recipient addresses and rates. Calculate the royalty amount by multiplying the fee rate (divided by 10,000 for percentage conversion) by the sale price. Handle special cases where Blur Swap contract is the buyer by using the transaction's `from_address` as the actual NFT buyer. Convert null or pool token addresses to WETH for price calculations.
- **Key fields**: `royalty_amount` calculated as `sell_royalty.rate / 10^4 * sale_price`, `royalty_recipient_address` from fee structure, `volume_amount` as sale price

### Component B: Blur v2 exchange royalty fees  
- **Purpose**: Extract royalty fees from trades on Blur's upgraded exchange with packed data structures
- **Logic**: Process multiple event types from Blur Exchange v2, each with different fee structures. Use JavaScript user-defined functions to perform bitwise operations on large integers, unpacking encoded trade data containing token IDs, prices, trader addresses, and fee tiers. Calculate royalty amounts by multiplying the trade volume by either `maker_fee_tier` or `taker_fee_tier` (depending on event type) divided by 10,000. Handle three main packed event types plus a separate execution event type.
- **Key fields**: `royalty_amount` calculated as `volume_amount * fee_tier / 10^4`, unpacked `trader_address` and `fee_recipient_address`, `volume_amount` from unpacked price data

### Component C: Seaport-based royalty fees
- **Purpose**: Capture royalty fees from Seaport protocol trades executed through Blur's zone
- **Logic**: Process `OrderFulfilled` events from OpenSea's Seaport contracts (versions 1.1 through 1.6), filtering specifically for trades where `owner_id` equals Blur's zone address. Unnest the offers and considerations arrays from each order. Identify fee payments as considerations that go to recipients other than the buyer or seller, have non-NFT item types, and represent distinct token types from the main trade. Handle both matched and unmatched orders with different calculation logic. Convert null addresses to WETH for price normalization.
- **Key fields**: `fee_amount` from considerations meeting fee criteria, `consideration_recipient_address` as royalty recipient, trade volumes from offers or considerations based on order structure

### Component D: Blend collateral trade fees
- **Purpose**: Account for trades of NFTs locked as collateral in Blur's lending protocol
- **Logic**: Process function calls from Blur's Blend protocol representing direct purchases of NFTs from borrowers who have locked them as loan collateral. Extract trade details from four function types: `buyLockedETH`, `buyLocked`, `buyToBorrowLocked`, and `buyToBorrowLockedETH`. Set royalty amount to zero for all Blend trades since collateral purchases typically don't trigger creator royalty payments. Include these trades for volume tracking but they don't contribute to supply-side fees.
- **Key fields**: `royalty_amount` set to 0, `volume_amount` from offer price, borrower and buyer addresses from function parameters

### Final aggregation
- **Combining components**: Union all trade records from the four sources (Blur v1, Blur v2, Seaport, Blend) into a unified trade dataset, standardizing field names and data types across sources
- **Time aggregation**: Truncate trade timestamps to daily boundaries and group by date, chain, market sector, business segment, product, and token address. Sum all `royalty_amount` values to get total daily supply-side fees per token and business segment
- **Currency conversion**: Apply USD conversion using end-of-day token price feeds, with automatic decimal correction based on token metadata. Convert aggregated native token amounts to USD values using the appropriate exchange rate for each day and token
- **Final calculation**: The final supply-side fees metric represents the total USD value of royalty payments flowing to NFT creators and rights holders across all Blur trading mechanisms on each day, with proper schema validation and gap-filling applied for consistent time series reporting

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

Portion of fees distributed to service providers or supply-side participants.

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Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown