Users are able to buy “keys” of other users X (Twitter) accounts. By owning a “key” the user gets access to a private chat with the person whose “key” one owns. When a “key” of a users account is traded the user earns a commission (supply-side fees).

friend.tech is a crypto native social media application built on Base. friend.tech was founded by pseudonymous developers known as Racer and Shrimp and launched in 2023.

friend.tech team and investors own the protocol. They currently take a cut of the total trading volume (revenue). friend.tech’s investors include Paradigm.

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friend.tech

# friend.tech Earnings Methodology

## 1. Overview

Friend.tech earnings represent the protocol's net profit calculated as total revenue minus total expenses. The metric combines revenue from two versions of the platform: the original friend.tech v1 (ETH-based social trading) and friend.tech v2 Clubs (FRIEND token-based social trading). Expenses consist only of token incentives, which are currently zero as friend.tech does not distribute token rewards to users.

## 2. Data sources

- **Base blockchain events**: Parsed `Trade` events from the friend.tech v1 contract containing ETH-denominated social trading activity
- **Base blockchain events**: Parsed `Buy` and `Sell` events from the friend.tech v2 Clubs contract containing FRIEND token-denominated trading activity  
- **Base blockchain events**: Parsed `changeProtocolFee` and `changeBestFriendFee` function calls from the v2 Clubs contract for fee rate updates
- **Base transaction data**: Transaction records to map event addresses to user addresses
- **End-of-day token price feeds**: ETH price data for v1 revenue conversion to USD
- **External price data**: CoinGecko daily market data for FRIEND token pricing, as the token is non-transferrable and lacks reliable on-chain price discovery

## 3. Step-by-step calculation

### Component A: Friend.tech v1 revenue
- **Purpose**: Calculate protocol revenue from the original friend.tech platform using ETH-based trades
- **Logic**: Extract protocol fees directly from `Trade` events emitted by the friend.tech v1 contract on Base. Each trade event contains a `protocolEthAmount` field representing the protocol's share of the transaction value. These amounts are aggregated daily by summing all protocol fee amounts across all v1 trades.
- **Key fields**: `protocolEthAmount` represents protocol revenue per trade, `block_timestamp` for daily aggregation, `token_address` set to WETH for price conversion

### Component B: Friend.tech v2 protocol fee configuration  
- **Purpose**: Track protocol fee rates over time for v2 Clubs trades
- **Logic**: Monitor `changeProtocolFee` function calls to establish fee rate intervals. Each fee change creates a time interval where that rate applies to all subsequent trades until the next rate change. The fee rates are normalized by dividing raw values by 1e18 to convert from wei to decimal percentages.
- **Key fields**: `protocol_fee_rate` as the applicable fee percentage, `block_timestamp` and `next_block_timestamp` defining the rate's validity period

### Component C: Friend.tech v2 best friend fee configuration
- **Purpose**: Track best friend fee rates over time for v2 Clubs trades  
- **Logic**: Monitor `changeBestFriendFee` function calls to establish best friend fee rate intervals, similar to protocol fees. These fees are paid to designated "best friends" of club creators and represent a separate revenue stream from protocol fees.
- **Key fields**: `best_friend_fee_rate` as the applicable fee percentage, validity time intervals for rate application

### Component D: Friend.tech v2 revenue calculation
- **Purpose**: Calculate protocol revenue from v2 Clubs trades using FRIEND token amounts
- **Logic**: Process `Buy` and `Sell` events from the v2 Clubs contract. For each trade, apply the appropriate protocol fee rate based on the trade timestamp by joining with the fee configuration data. Calculate the underlying trade value by adjusting the total volume for all applicable fees (protocol + best friend fees), then multiply by the protocol fee rate to determine protocol revenue. Handle buy and sell trades differently due to fee application direction.
- **Key fields**: `volume_amount_total` from events, calculated `protocol_fee_amount` after applying time-based rates

### Component E: Currency conversion and aggregation
- **Purpose**: Convert both revenue streams to USD and combine them
- **Logic**: Convert v1 ETH-denominated revenues to USD using end-of-day ETH price feeds. Convert v2 FRIEND token-denominated revenues to USD using CoinGecko daily market data, as the FRIEND token is non-transferrable and lacks reliable on-chain pricing. Aggregate both revenue streams daily and sum across all trading activity.
- **Key fields**: Final `revenue` amounts in USD after price conversion and daily aggregation

### Component F: Expenses calculation  
- **Purpose**: Calculate total protocol expenses from token incentive programs
- **Logic**: Set token incentives to zero as friend.tech does not currently operate token reward programs. All expense amounts are maintained as zero values across all time periods.
- **Key fields**: `token_incentives` set to 0, aggregated daily to match revenue timing

### Final aggregation
- **Combining components**: Sum v1 and v2 protocol revenues to get total revenue, maintain zero expenses, then subtract expenses from revenue using the standard earnings formula
- **Currency conversion**: All amounts converted to USD using appropriate price feeds (ETH prices for v1, CoinGecko FRIEND prices for v2) based on end-of-day pricing
- **Time aggregation**: Daily boundaries defined by truncating block timestamps to day level, ensuring consistent daily aggregation across all components  
- **Final calculation**: Earnings equals total daily protocol revenue (v1 ETH revenue plus v2 FRIEND token revenue, both in USD) minus total daily expenses (currently zero), with forward-filling applied to ensure continuous daily data coverage

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

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

friend.techFRIEND

Earnings

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