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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NFT marketplaces

Foundation

# Foundation Fees Methodology

## 1. Overview

Foundation fees represents the total platform fees collected by Foundation, an NFT marketplace on Ethereum. This metric captures fees from both secondary market trades and primary market drops (mints), measuring the platform's fee revenue across different transaction types. The calculation combines protocol fees with conditional creator fees from secondary trades, plus protocol fees from primary drops, converted to USD and aggregated daily.

## 2. Data sources

- **Ethereum smart contract events**: Parsed Foundation v1 contract event logs capturing fee-generating transactions
  - Secondary market events: `ReserveAuctionFinalized`, `PrivateSaleFinalized`, `BuyPriceAccepted`, and `OfferAccepted` events
  - Primary market events: `NFTDropMarket_MintFromFixedPriceDrop` events for drop mints
- **End-of-day price feeds**: Token price data for USD conversion
- **Token metadata**: Decimal precision data for amount normalization

## 3. Step-by-step calculation

### Component A: Secondary market trade fees
- **Purpose**: Captures fees from secondary NFT marketplace transactions including auctions, private sales, buy-now purchases, and offer acceptances
- **Logic**: Extracts fee data from four types of Foundation marketplace events. For each trade, collects protocol fees (`f8nFee`), creator fees (`creatorFee`), and owner fees (`ownerRev`). Applies conditional logic where creator fees are only included when owner fees are greater than zero, preventing mixing of volume with fees. All transactions use WETH as the payment token and are classified as 'Secondary' trade type
- **Key fields**: `creatorFee` (creator royalties), `ownerRev` (seller revenue used as condition), `f8nFee` (platform protocol fees), plus transaction metadata like `block_timestamp`, `transaction_hash`, and `log_index`

### Component B: Primary market drop fees  
- **Purpose**: Captures fees from primary market NFT drops and mints directly from creators
- **Logic**: Extracts fee data from mint events when users purchase NFTs directly from drops. Collects total protocol fees (`totalFees`) and creator revenue (`creatorRev`), but only includes protocol fees in the final calculation to focus on platform revenue rather than creator earnings. All drop transactions use WETH as the payment token and are classified as 'Drop' trade type
- **Key fields**: `totalFees` (total platform fees), `creatorRev` (excluded from final calculation), plus standard transaction metadata

### Final aggregation
- **Combining components**: Union secondary market and primary market fee data into a single dataset, maintaining separate trade type classifications but applying consistent fee calculation logic
- **Currency conversion**: Convert all fee amounts from native WETH units to USD using end-of-day token prices, with automatic decimal correction to standardize amounts
- **Time aggregation**: Truncate all timestamps to daily boundaries using the `timestamp_trunc` function for consistent daily aggregation
- **Final calculation**: Sum the calculated fee amounts (protocol fees plus conditional creator fees for trades, protocol fees only for drops) per day, filling missing data points with zeros and enriching with project metadata through standard finalization macros

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Foundation

Fees

Fees

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