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 revenue per user (ARPU) Methodology

## 1. Overview

Foundation Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Foundation NFT marketplace. This metric is calculated by dividing total daily protocol fee revenue by the number of unique daily active users. ARPU provides insight into the monetization efficiency and user value generation of the Foundation platform, helping assess how much revenue the protocol generates from each active participant.

## 2. Data sources

The calculation relies on the following raw blockchain data sources:
- **Foundation marketplace events**: Parsed Ethereum event logs from Foundation v1 smart contracts capturing trading activity
- **Secondary market events**: `Market_PrivateSaleFinalized`, `Market_BuyPriceAccepted`, `Market_OfferAccepted`, and `Market_ReserveAuctionFinalized` events containing buyer addresses, seller addresses, and protocol fee amounts
- **Primary market events**: `NFTDropMarket_MintFromFixedPriceDrop` events containing buyer addresses and total fee amounts
- **End-of-day price feeds**: Token price data for converting WETH-denominated fees to USD values
- **Token metadata**: Configuration data providing decimal precision and token contract details for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Daily active user calculation
- **Purpose**: Count unique wallet addresses that participated in any Foundation marketplace activity each day
- **Logic**: Extract all buyer and seller addresses from Foundation trading events across both secondary and primary markets. Each unique wallet address that appears as either a buyer (`buyer`, `bidder`) or seller (`seller`) in any marketplace transaction on a given day is counted as a daily active user. All participants are classified with the user type 'Trader' regardless of their role in the transaction.
- **Key fields**: `buyer`, `seller`, `bidder` addresses from event logs, `block_timestamp` for daily aggregation, `user_address` as the standardized user identifier

### Component B: HyperLogLog aggregation for scalable counting
- **Purpose**: Efficiently count unique users across different dimensional breakdowns using probabilistic data structures
- **Logic**: Apply HyperLogLog sketching to enable scalable unique user counting. Create separate dimensional views including project-level aggregation, chain-level breakdown, user type breakdown, and product-level breakdown. Use HyperLogLog merge operations to combine sketches and extract final unique user counts for each dimension and time period.
- **Key fields**: `hll` sketch objects for probabilistic counting, `user_dau` as the final extracted unique user count, `dimensions` field indicating the aggregation level

### Component C: Protocol fee revenue calculation
- **Purpose**: Calculate total daily protocol fee revenue from both secondary and primary market activities
- **Logic**: Collect protocol fees from two sources. For secondary market trades, extract the `f8nFee` field from Market events representing Foundation's protocol fee. For primary market drops, extract the `totalFees` field from NFTDropMarket events. All fee amounts are denominated in WETH tokens. Union both fee sources and aggregate by day to get total daily protocol fee revenue.
- **Key fields**: `f8nFee` from secondary market events, `totalFees` from primary market events, `token_address` set to WETH contract address, `protocol_fee_amount` as the standardized fee field

### Component D: Currency conversion and decimal correction
- **Purpose**: Convert WETH-denominated fees to USD values with proper decimal precision
- **Logic**: Apply decimal correction to convert raw blockchain amounts to human-readable token amounts by adjusting for WETH's 18 decimal places. Convert the corrected WETH amounts to USD using end-of-day exchange rates. This ensures all revenue figures are expressed in USD for consistent reporting and comparison.
- **Key fields**: `revenue` field containing the final USD-converted amounts, conversion applied to `protocol_fee_amount` values

### Final aggregation
- **Combining components**: Join the daily active user counts with daily revenue amounts by matching on the timestamp (day) dimension. Both metrics are aggregated to the same daily time grain to ensure proper alignment.
- **Currency conversion**: All revenue is converted from WETH to USD using end-of-day exchange rates and corrected for 18 decimal places
- **Time aggregation**: Both user activity and revenue are aggregated using day-level timestamp truncation, creating consistent daily boundaries
- **Final calculation**: Calculate ARPU by dividing total daily USD revenue by total daily unique active users. Handle edge cases where daily active users equal zero by implementing appropriate fill strategies to avoid division by zero errors.

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

Foundation

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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