Foundation enables users to mint and sell their digital art and earn royalties in return (supply-side fees). The platform takes a fee for each successful trade (revenue). 

Foundation aims to build a new creative economy by empowering artists, collectors and other users to buy, sell, and participate in live auctions for various digital pieces of art.

Foundation is a NFT marketplace, featuring live auctions, built on Ethereum. The platform was founded by 
Kayvon Tehranian and it was launched in February 2021. 

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Foundation

# Foundation Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average amount of fees generated per daily active user on the Foundation NFT marketplace. This metric answers how much fee revenue each user generates on average per day, providing insight into user value and marketplace efficiency. The calculation divides total daily fees by the number of unique daily active users.

## 2. Data sources

- **Foundation marketplace events**: Parsed Ethereum smart contract events from Foundation's v1 marketplace covering all trading activities
- **Secondary market events**: `ReserveAuctionFinalized`, `PrivateSaleFinalized`, `BuyPriceAccepted`, and `OfferAccepted` events capturing auction completions, private sales, and offer acceptances
- **Primary market events**: `MintFromFixedPriceDrop` events from the NFTDropMarket contract capturing primary NFT drops
- **End-of-day price feeds**: Token price data for WETH to USD conversion
- **Token metadata**: Decimal information for proper amount calculation and normalization

## 3. Step-by-step calculation

### Component A: Fee extraction and processing
- **Purpose**: Extract and aggregate all fee amounts from Foundation marketplace activity
- **Logic**: Process two types of trading events - secondary market trades and primary drops. For secondary market events, extract `creatorFee`, `ownerRev`, and `f8nFee` amounts from each trade event. For drop events, extract `creatorRev` and `totalFees` amounts. Apply specific fee combination logic where protocol fees are always included, but creator fees are only included when owner fees are present (indicating a secondary sale where creator royalties apply). All fee amounts are denominated in WETH tokens.
- **Key fields**: `protocol_fee_amount`, `creator_fee_amount`, `owner_fee_amount` from trade events, and `protocol_fee_amount`, `creator_fee_amount` from drop events

### Component B: User identification and counting  
- **Purpose**: Identify and count unique daily active users from marketplace activity
- **Logic**: Extract user addresses from the same Foundation marketplace events used for fee calculation. For each event, identify both buyer and seller addresses as active traders. Group users by day using timestamp truncation, then apply HyperLogLog sketching to count unique users across multiple dimensions (project-level, chain-level, user-type-level, product-level) while avoiding double-counting of users who appear in multiple events on the same day.
- **Key fields**: `seller`, `buyer`, `bidder` addresses from various events, classified as `user_type` "Trader"

### Component C: Currency conversion and normalization
- **Purpose**: Convert WETH-denominated fees to USD for consistent reporting
- **Logic**: Apply decimal correction to convert raw smart contract amounts to proper token amounts, then convert from WETH to USD using end-of-day price feeds. Use the `convert_to_usd_and_correct_decimals` macro which handles both decimal correction and currency conversion in a single step.
- **Key fields**: Converted `fees` amounts in USD

### Final aggregation
- **Combining components**: Sum total daily fees across all trading events and count unique daily active users across all events for each day. Both metrics are aggregated at the same temporal and dimensional granularity to ensure consistency.
- **Currency conversion**: All fees are converted from WETH to USD using end-of-day exchange rates before aggregation
- **Time aggregation**: Data is grouped by calendar day using timestamp truncation to day boundaries
- **Final calculation**: AFPU is calculated by dividing the total daily fee amount (in USD) by the count of unique daily active users, using the `calculate_arpu` macro which performs the division operation while handling edge cases like zero users

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

Foundation

Average fees per user (AFPU)

Average fees per user (AFPU)

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