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 Earnings Methodology

## 1. Overview

NFTX earnings represents the net profit generated by the NFTX protocol from its NFT marketplace operations. The metric is calculated as revenue minus expenses, where revenue comes from fee distributions to the protocol's fee recipient address and expenses are currently set to zero. This metric answers the business question: "What is NFTX's net profit from protocol operations?" The calculation uses a straightforward approach of identifying fee flows within the NFTX ecosystem and tracking distributions to the protocol's designated revenue address.

## 2. Data sources

The NFTX earnings calculation relies on several core blockchain data sources:

- **Ethereum token transfer events**: All ERC-20 token transfers on Ethereum, providing the raw transaction data for fee payments and distributions
- **NFTX VaultFactory contract events**: Specifically the `NewVault` events that register new NFTX vaults and the `NewFeeDistributor` events that identify fee recipient addresses
- **End-of-day token price feeds**: USD pricing data for converting fee amounts from native tokens to USD values
- **Token metadata**: Information about token decimals and contract addresses for proper amount normalization

## 3. Step-by-step calculation

### Component A: Fee account identification

- **Purpose**: Identifies all addresses that can distribute fees within the NFTX protocol
- **Logic**: Extracts fee distributor addresses from NFTX VaultFactory `NewFeeDistributor` events on Ethereum. Each event contains a `newDistributor` field that specifies an address authorized to distribute fees
- **Key fields**: The `newDistributor` address serves as the fee account identifier

### Component B: Vault identification

- **Purpose**: Maps NFTX vault addresses to their associated NFT contracts and vault identifiers
- **Logic**: Processes NFTX VaultFactory `NewVault` events to create a mapping between vault addresses and their underlying NFT contracts. Each vault represents a fractionalized NFT collection
- **Key fields**: `vaultId` for unique identification, `assetAddress` for the underlying NFT contract, and `vaultAddress` for the vault's token contract address

### Component C: Fee transfer identification

- **Purpose**: Identifies all token transfers that represent fee payments within the NFTX ecosystem
- **Logic**: Filters Ethereum token transfers where the sender address is a recognized NFTX fee account and the token being transferred corresponds to an NFTX vault token. This captures fee distributions and payments flowing through the protocol
- **Key fields**: `from_address` (must be a fee account), `to_address` (recipient of fees), `token_address` (vault token), `value` (fee amount), and `block_timestamp` for temporal ordering

### Component D: Revenue calculation

- **Purpose**: Isolates fee distributions that represent protocol revenue
- **Logic**: From the identified fee transfers, filters specifically for transfers sent to the protocol's designated fee recipient address `0x40d73df4f99bae688ce3c23a01022224fe16c7b2`. These transfers represent the protocol's share of fees collected from user activities
- **Key fields**: `amount` represents the revenue value, filtered by `to_address` matching the protocol recipient

### Component E: Expenses calculation

- **Purpose**: Determines operational costs incurred by the protocol
- **Logic**: Currently set to zero as NFTX does not track token incentive expenses or other operational costs in this calculation framework
- **Key fields**: `expenses` is consistently set to 0 across all time periods and vault tokens

### Final aggregation

- **Combining components**: Revenue and expenses are combined using the earnings formula (revenue - expenses). Since expenses are zero, earnings equals revenue
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds, with proper decimal adjustment based on each token's specification
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with each day representing the sum of all fee distributions within that 24-hour period
- **Final calculation**: Daily earnings equal the sum of all USD-converted fee distributions to the protocol recipient address, minus zero expenses, resulting in net protocol earnings

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

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

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