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.

governance

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etherscan

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NFT marketplaces

NFTX

# NFTX Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per unique user of the NFTX protocol. NFTX is an Ethereum-based protocol that enables users to create liquid markets for NFTs by minting fungible ERC-20 tokens backed by NFT collections. The ARPU metric is calculated by dividing daily protocol revenue by the number of daily active users, providing insight into the monetization efficiency per user. This metric helps assess the protocol's ability to generate revenue from its user base and track changes in user value over time.

## 2. Data sources

The calculation relies on several types of blockchain data and external sources:

- **NFTX protocol events**: Parsed Ethereum event logs from NFTX v2 smart contracts, including `Minted`, `Redeemed`, and `Swapped` events from vault contracts, plus `NewVault` and `NewFeeDistributor` events from the factory contract
- **Legacy migration data**: Parsed `XStore_HoldingsRemoved_event` logs from NFTX v1 contracts to identify and exclude vault migration transactions
- **Token transfer events**: Ethereum token transfer events filtered by sender addresses to track fee distributions
- **Transaction data**: Ethereum transaction records to identify user addresses and transaction context
- **Token metadata**: Information about token symbols, decimals, and contract addresses for proper token handling
- **Price feeds**: End-of-day token price feeds for USD conversion of revenue amounts

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Identify and count unique users interacting with NFTX vaults each day
- **Logic**: Extract user addresses from three types of NFTX v2 vault events. `Minted` events capture users depositing NFTs to receive fungible tokens, `Redeemed` events capture users burning tokens to withdraw specific NFTs, and `Swapped` events capture users exchanging one NFT for another. The user address is identified as the transaction initiator (the `from_address` field from transaction records), not the vault contract address. Events are joined with vault information from `NewVault` events to get vault and NFT collection details. Migration transactions are excluded by filtering out any transaction hashes that appear in NFTX v1 `XStore_HoldingsRemoved_event` logs. Users are classified by activity type as 'Redeemer', 'Minter', or 'Swapper' based on the event type.
- **Key fields**: User addresses from `from_address`, event types for classification, `block_timestamp` for daily aggregation, vault addresses and NFT collection addresses for context

### Component B: Revenue calculation
- **Purpose**: Calculate daily protocol revenue from fee distributions
- **Logic**: First identify fee distributor accounts from `VaultFactory_NewFeeDistributor_event` logs, which contain the `newDistributor` addresses. Then extract token transfer events where the sender is any of these fee distributor accounts and the recipient is the protocol's main fee account address `0x40d73df4f99bae688ce3c23a01022224fe16c7b2`. Only transfers TO this specific recipient address are counted as protocol revenue. The token transfer `value` amounts are summed by day and token address.
- **Key fields**: Transfer `value` amounts, `token_address` for identifying which tokens, `to_address` and `from_address` for filtering fee distributions, `block_timestamp` for daily aggregation

### Component C: Currency conversion and aggregation
- **Purpose**: Convert token amounts to USD and aggregate by day
- **Logic**: Token amounts are converted to USD using end-of-day price feeds matched by token address and date. Decimal corrections are applied based on the token's decimal configuration (e.g., converting wei to ETH for 18-decimal tokens). Both revenue and user metrics are aggregated using daily timestamp truncation, ensuring consistent daily boundaries. Missing days are filled with zeros to maintain complete time series.
- **Key fields**: USD-converted `revenue` amounts, daily `timestamp` boundaries, distinct `user` counts

### Final aggregation
- **Combining components**: Revenue and user DAU metrics are calculated independently and then combined using the ARPU calculation macro
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day price feeds with appropriate decimal adjustments for each token
- **Time aggregation**: Both metrics use daily timestamp truncation to ensure consistent time boundaries, with data aggregated from June 21, 2021 onwards
- **Final calculation**: ARPU is calculated by dividing the daily USD revenue by the daily active user count. Days with zero users result in zero ARPU to avoid division errors. The metric includes zero-filling for missing days to maintain complete time series continuity

## Critical guidelines

The methodology includes several important data quality and business logic considerations:

- **Migration exclusion**: Vault migration transactions from NFTX v1 to v2 are specifically excluded to avoid double-counting users during the protocol upgrade
- **Fee account specificity**: Only transfers to the exact protocol fee account address `0x40d73df4f99bae688ce3c23a01022224fe16c7b2` are counted as revenue
- **User identification**: Users are identified by transaction initiators rather than contract addresses to capture actual human/bot users rather than smart contracts
- **HyperLogLog aggregation**: User counting uses HyperLogLog algorithms for efficient distinct counting across multiple dimensions while maintaining accuracy
- **Time boundaries**: Data collection begins from June 21, 2021, which appears to correspond to the NFTX v2 launch date

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

NFTXNFTX

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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