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 Token incentives Methodology

## 1. Overview

Foundation's token incentives metric measures the USD value of tokens distributed as rewards or incentives to users of the Foundation NFT marketplace. However, Foundation protocol has made a business decision not to implement token-based incentive programs. Therefore, this metric consistently returns zero for all time periods and chains.

The metric maintains the same temporal and dimensional structure as other Foundation metrics (daily aggregation, chain-specific breakdowns) to ensure consistency in reporting, but the actual incentive amount is hardcoded to zero.

## 2. Data sources

While the metric references Foundation's fee calculation infrastructure for structural consistency, no actual token incentive data sources are used because Foundation does not distribute token rewards. The underlying fee calculation (used only for timestamp structure) draws from:

- **Foundation smart contract events**: Parsed events from Foundation's v1 NFT marketplace contracts on Ethereum
- **NFT marketplace transaction events**: Including `ReserveAuctionFinalized`, `PrivateSaleFinalized`, `BuyPriceAccepted`, and `OfferAccepted` events for secondary sales
- **NFT minting events**: `MintFromFixedPriceDrop` events from Foundation's drop contracts for primary mints
- **End-of-day price feeds**: WETH price data for USD conversion (though not used in final calculation)
- **Token metadata**: For decimal correction in fee calculations (though not used in final calculation)

## 3. Step-by-step calculation

### Component A: Timestamp structure template
- **Purpose**: Establish consistent temporal and dimensional framework matching other Foundation metrics
- **Logic**: References the Foundation fees metric to extract the complete set of timestamps, chains, and product identifiers where Foundation operates. This ensures the token incentives metric covers the same time periods and chains as other Foundation metrics, maintaining reporting consistency
- **Key fields**: `timestamp` (daily boundaries), `timestamp_grain` (day), `product_id`, `chain_id`

### Component B: Zero incentive assignment
- **Purpose**: Implement the business rule that Foundation does not distribute token incentives
- **Logic**: For every record in the timestamp structure, assigns a value of 0 to the `token_incentives` field. This hardcoded assignment reflects Foundation's business model decision not to implement token-based reward programs
- **Key fields**: `token_incentives` (always 0)

### Final aggregation
- **Combining components**: No aggregation is needed since all values are zero. The finalization macro applies standard schema validation and ensures no gaps in the time series
- **Currency conversion**: Not applicable since all values are zero
- **Time aggregation**: Daily boundaries are maintained consistent with other Foundation metrics
- **Final calculation**: The final token incentives value is always 0 USD for all time periods and chains where Foundation operates

This methodology reflects a business decision rather than a technical limitation - Foundation could implement token incentives in the future by modifying this calculation, but currently chooses not to offer token-based rewards to users.

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

Value of native tokens distributed as incentives.

Foundation

Token incentives

Token incentives

Competitive landscape