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 Earnings Methodology

## 1. Overview

Foundation earnings represents the net profit generated by the Foundation NFT marketplace, calculated as total revenue minus total expenses. This metric captures the platform's profitability from protocol fees collected on both primary market drops (minting) and secondary market trades. Foundation operates as an NFT marketplace on Ethereum, earning protocol fees from various transaction types while currently not operating any token incentive programs or other tracked expenses.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Ethereum smart contract event logs**: Foundation's marketplace contract events including `MintFromFixedPriceDrop`, `ReserveAuctionFinalized`, `PrivateSaleFinalized`, `BuyPriceAccepted`, and `OfferAccepted` events
- **Transaction metadata**: Block timestamps, transaction hashes, and log indices from Ethereum transaction records
- **End-of-day token price feeds**: WETH to USD conversion rates for fee calculations
- **Token metadata**: WETH contract address and decimal configuration for proper amount calculations

## 3. Step-by-step calculation

### Component A: Primary market revenue

- **Purpose**: Calculate protocol fees earned from NFT minting activities
- **Logic**: Extract protocol fee amounts from `MintFromFixedPriceDrop` events emitted by Foundation's NFT drop marketplace contract. These events represent primary market transactions where users mint NFTs directly from creators. The `protocol_fee_amount` field contains the fee amount paid to Foundation in WETH
- **Key fields**: `block_timestamp` for daily aggregation, `protocol_fee_amount` as the fee earned by Foundation, transaction identifiers for deduplication

### Component B: Secondary market revenue

- **Purpose**: Calculate protocol fees earned from secondary NFT trading activities
- **Logic**: Extract protocol fee amounts from four different secondary market event types: reserve auctions that finalize when the auction period ends, private sales between specific parties, buy-now purchases at fixed prices, and accepted offers on listed NFTs. Each event type contains a `protocol_fee_amount` field representing Foundation's fee in WETH. All secondary market transactions are classified as 'Secondary' trade type
- **Key fields**: `block_timestamp` for temporal aggregation, `protocol_fee_amount` as Foundation's earnings, `trade_type` to identify the transaction method, transaction identifiers to prevent double-counting

### Component C: Total expenses calculation

- **Purpose**: Calculate total operational expenses incurred by the protocol
- **Logic**: Currently set to zero as Foundation does not operate token incentive programs or other tracked expense categories. Token incentives are explicitly set to 0 across all time periods and chains, ensuring consistent data structure while indicating no current expense programs
- **Key fields**: `timestamp` for time alignment with revenue data, `token_incentives` set to 0, chain and product identifiers for proper data structure

### Final aggregation

- **Combining components**: Primary and secondary market revenues are summed together to create total daily revenue. Expenses (currently zero) are prepared with the same temporal and dimensional structure
- **Currency conversion**: All WETH fee amounts are converted to USD using end-of-day price feeds and corrected for WETH's 18 decimal places before aggregation
- **Time aggregation**: Transaction-level fees are aggregated to daily totals using `timestamp_trunc` to the day level, with all transactions within a 24-hour period contributing to that day's total
- **Final calculation**: Daily earnings equals daily total revenue minus daily total expenses. Since expenses are currently zero, earnings equals total revenue. Missing days are filled with zeros to maintain continuous time series data

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Foundation

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