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

github

twitter

discord

etherscan

website

NFT marketplaces

NFTX

# NFTX Expenses Methodology

## 1. Overview

The NFTX expenses metric tracks token-based incentive payments made by the NFTX protocol to users or liquidity providers. However, in the current implementation, NFTX does not distribute token incentives, so this metric consistently reports zero values across all time periods while maintaining the same dimensional structure and time grain as the protocol's fee metrics.

## 2. Data sources

The calculation uses the following data sources to establish the metric structure:
- **NFTX protocol events**: Parsed `NewFeeDistributor` and `NewVault` events from the NFTX v2 VaultFactory contract on Ethereum
- **Ethereum token transfers**: Token transfer records to identify fee payment patterns and establish the base metric structure  
- **End-of-day token price feeds**: Used for USD conversion in the underlying fee calculations that provide the template structure
- **Token metadata**: Token decimal information for proper value normalization

## 3. Step-by-step calculation

### Component A: Fee distributor identification
- **Purpose**: Identify authorized NFTX fee distributor accounts
- **Logic**: Extract fee distributor addresses from `NewFeeDistributor` events emitted by the NFTX VaultFactory contract on Ethereum. These addresses represent accounts authorized to distribute trading fees within the NFTX ecosystem.
- **Key fields**: `newDistributor` address from the event logs

### Component B: Vault registry
- **Purpose**: Create a registry of NFTX vaults and their associated NFT collections
- **Logic**: Process `NewVault` events from the NFTX VaultFactory to capture vault creation details. Each vault represents a specific NFT collection that can be fractionalized through NFTX.
- **Key fields**: `vaultId` for vault identification, `assetAddress` for the underlying NFT contract, `vaultAddress` for the vault's token contract

### Component C: Fee payment identification  
- **Purpose**: Identify actual fee payments within the NFTX ecosystem
- **Logic**: Analyze Ethereum token transfers where the sender is a fee distributor account and the token address matches a registered NFTX vault. This captures fee distributions from the protocol to vault token holders.
- **Key fields**: Transaction details including `block_timestamp`, `transaction_hash`, `log_index`, token `value`, and addresses

### Component D: Fee aggregation and USD conversion
- **Purpose**: Create a structured daily fee metric in USD terms
- **Logic**: Group the fee payments by day, chain, and product dimensions. Convert token amounts to USD using end-of-day price feeds and apply decimal corrections based on token metadata. This creates the dimensional template that will be used for expenses.
- **Key fields**: Daily `timestamp`, `chain_id`, `product_id`, USD-denominated `fees`

### Component E: Token incentives calculation
- **Purpose**: Calculate token-based incentive payments
- **Logic**: Use the fee metric structure as a template but explicitly set all token incentive values to zero. This reflects that NFTX does not currently distribute token incentives to users or liquidity providers.
- **Key fields**: Same dimensions as fees but with `token_incentives` set to zero

### Final aggregation
- **Combining components**: The expenses metric directly inherits the zero token incentives values
- **Currency conversion**: No additional conversion needed as values are already zero
- **Time aggregation**: Maintains daily granularity established in the fee calculation template
- **Final calculation**: Expenses equal the token incentives amount, which is zero for all periods, creating a complete time series with consistent zero values across all NFTX vaults and time periods

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

Total project operating and incentive expenses.

NFTXNFTX

Expenses

Expenses

Competitive landscape

Chain breakdown