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 Supply-side fees Methodology

## 1. Overview

The Foundation supply-side fees metric measures the total fees paid to content creators and NFT owners on the Foundation NFT marketplace. This metric captures the fees that flow to the supply side of the marketplace (creators and current owners) rather than to the protocol itself. The calculation focuses on secondary market transactions where creator royalties are paid, representing the platform's value distribution to its creator community.

## 2. Data sources

- **Foundation marketplace event logs**: Parsed Ethereum event logs from Foundation's v1 marketplace smart contracts
- **Auction finalization events**: `ReserveAuctionFinalized` events capturing completed auction sales
- **Private sale events**: `PrivateSaleFinalized` events for direct private transactions
- **Buy price events**: `BuyPriceAccepted` events when fixed-price offers are accepted
- **Offer acceptance events**: `OfferAccepted` events for accepted offers on listed NFTs
- **End-of-day price feeds**: Token price data for USD conversion of WETH-denominated fees
- **Token metadata**: WETH token configuration including decimal precision settings

## 3. Step-by-step calculation

### Component A: Trade data extraction
- **Purpose**: Aggregates all secondary marketplace transactions from Foundation's various sale mechanisms
- **Logic**: Combines data from four distinct event types that represent different ways NFTs are sold on Foundation. Each event contains fee breakdowns including creator fees, owner revenue, and protocol fees. All transactions are classified as secondary market trades and standardized to use WETH as the fee token. The system extracts key transaction identifiers including block timestamp, transaction hash, and log index for precise tracking.
- **Key fields**: `creatorFee` (fees paid to original creators), `ownerRev` (revenue to current NFT owners), `f8nFee` (protocol fees to Foundation), along with transaction metadata

### Component B: Fee filtering and classification
- **Purpose**: Identifies trades where supply-side fees are paid and determines the appropriate fee amount
- **Logic**: Filters the trade data to include only transactions where the `ownerRev` field is greater than zero. In Foundation's fee structure, when owner fees exist, there are no creator fees, making the creator fee amount the actual supply-side fee paid out. This filtering ensures the metric only captures trades where fees flow to the supply side rather than being retained by the protocol.
- **Key fields**: `creatorFee` becomes the `fees_supply_side` amount, filtered by `ownerRev` greater than zero condition

### Component C: Currency conversion and standardization
- **Purpose**: Converts WETH-denominated fees to USD and applies proper decimal correction
- **Logic**: Takes the filtered fee amounts and applies decimal correction to account for WETH's 18-decimal precision. Then converts these amounts to USD using end-of-day price feeds for consistent cross-time comparisons. The chain identifier is migrated from `chain` to `chain_id` format for downstream compatibility.
- **Key fields**: `fees_supply_side` converted from WETH wei units to USD amounts using price feeds and decimal correction

### Final aggregation
- **Combining components**: The converted USD fee amounts are aggregated by day using timestamp truncation to daily boundaries. Each transaction maintains its individual identity through transaction hash and log index while being grouped temporally.
- **Currency conversion**: USD conversion uses end-of-day WETH price feeds applied after decimal correction from wei units to standard token amounts
- **Time aggregation**: Daily aggregation using timestamp truncation, with each day representing the sum of all supply-side fees paid during that 24-hour period
- **Final calculation**: The final metric value represents the total USD value of creator fees paid on Foundation's marketplace for trades where owner fees exist, aggregated by day and enriched with project metadata including business line classification as 'NFT marketplace' and market sector as 'nfts'

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

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

Foundation

Supply-side fees

Supply-side fees

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