Liquidity providers deposit funds into SushiSwap and NFTs into vaults and receive redemption and minting fees from users (supply-side fees).

NFTX is a non-custodial NFT marketplace protocol built on Ethereum. NFTX was founded by Alex Gausman and launched in 2021.

NFTX tokenholders own and govern the protocol. They currently take a cut of the redemption and minting fees (in the absence of liquidity providers) paid by users (revenue). NFTX's investors include Robot Ventures, etc.

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NFTX

# NFTX Average fees per user (AFPU) Methodology

## 1. Overview

The NFTX Average Fees Per User (AFPU) metric measures the average amount of fees generated per daily active user on the NFTX platform. NFTX is an NFT marketplace protocol that allows users to mint fungible tokens backed by NFT collections, redeem NFTs from vaults, and swap between different NFTs. This metric helps assess the revenue efficiency per user and the monetization effectiveness of the platform. The calculation divides total daily fees collected by the protocol by the number of unique daily active users.

## 2. Data sources

The calculation relies on several categories of blockchain data and external feeds:

- **NFTX protocol events**: Parsed Ethereum event logs from NFTX v2 contracts, specifically `Vault_Minted_event`, `Vault_Redeemed_event`, and `Vault_Swapped_event` logs that capture NFT trading activities
- **NFTX governance events**: Parsed `VaultFactory_NewVault_event` logs that register new NFT vaults and `VaultFactory_NewFeeDistributor_event` logs that identify fee collection accounts
- **Token transfer data**: Ethereum ERC-20 token transfer events used to track fee payments from distributor accounts
- **Transaction data**: Ethereum transaction records providing user addresses and transaction metadata
- **External price data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper amount calculations

## 3. Step-by-step calculation

### Component A: Daily active users calculation

- **Purpose**: Count unique users who interact with NFTX vaults daily through trading activities
- **Logic**: Extract user addresses from parsed NFTX vault events including minting (creating fungible tokens from NFTs), redeeming (withdrawing NFTs from vaults), and swapping (exchanging NFTs within vaults). Users are identified from the `from_address` field of the underlying Ethereum transactions that triggered these events. Users are categorized by activity type: Minters create vault tokens, Redeemers withdraw NFTs, and Swappers exchange NFTs. The system excludes transactions related to vault migrations from v1 to v2 to avoid double-counting. Daily unique users are counted using HyperLogLog sketches for efficient computation across multiple dimensions including overall totals, chain-level breakdowns, user type breakdowns, and product-level breakdowns.
- **Key fields**: `user_address` from transaction initiators, `event_type` from vault events (Minted/Redeemed/Swapped), `block_timestamp` for daily aggregation, `user_type` classification

### Component B: Fee collection calculation  

- **Purpose**: Calculate total fees collected by NFTX protocol from trading activities
- **Logic**: Identify fee payments by analyzing token transfers where the sender address is a registered NFTX fee distributor account. Fee distributor accounts are established through `VaultFactory_NewFeeDistributor_event` events which register the official fee collection addresses. The system tracks all ERC-20 token transfers originating from these distributor accounts, representing fees being distributed from the protocol treasury. Each transfer amount represents fees collected from trading activities. Token amounts are normalized by applying the correct decimal places for each token contract and then converted to USD values using end-of-day token price feeds. Daily fee totals are calculated by summing all fee distributions that occurred within each day.
- **Key fields**: `from_address` matching fee distributor accounts, `amount` of token transfers, `token_address` for price lookup, `block_timestamp` for daily aggregation

### Final aggregation

- **Combining components**: The daily active user counts and daily fee totals are joined on the date dimension to create paired daily observations. Both metrics must exist for the same date to calculate AFPU
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token prices. The conversion applies the correct decimal normalization for each token (e.g., dividing by 10^18 for most ERC-20 tokens) before applying the USD exchange rate
- **Time aggregation**: Both user counts and fees are aggregated to daily boundaries using UTC timestamps truncated to day level. This ensures consistent time alignment between the numerator (fees) and denominator (users)
- **Final calculation**: AFPU is calculated by dividing the total daily fees in USD by the count of daily active users. The division produces the average fee amount generated per user for each day. Days with zero users result in null AFPU values, while days with zero fees but active users result in zero AFPU values

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

NFTXNFTX

Average fees per user (AFPU)

Average fees per user (AFPU)

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