Artists can launch their music NFT editions through Sound.xyz and collect edition purchase payments (supply-side fees).

Sound.xyz is an NFT launchpad built for musicians and artists. Sound.xyz was founded by Vignesh Hirudayakanth, David Greenstein & Matt Masurka and launched in 2021.

Sound.xyz team owns and governs the protocol. They currently take a protocol fee of edition purchases (revenue).

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Sound.xyz

# Sound.xyz Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average revenue generated per daily active user on the Sound.xyz protocol. This metric is used to determine the average fee revenue contributed by each unique user on a daily basis. The value is calculated by dividing total daily fees by the number of active users (daily), providing insight into user monetization efficiency across Sound.xyz NFT marketplace operations.

## 2. Data sources

- **Blockchain events**: `Minted` events from `MerkleDropMinter` and `RangeEditionMinter` contracts; `Bought` and `Sold` events from `SAM`, `SAMV1`, and `SAMV2` contracts; `EditionPurchased` events from legacy `Artist` contracts; `CreatedArtist` and `SoundEditionCreated` events from `ArtistCreator` and `Creator` contracts; and Ethereum transaction records, covering Ethereum and Optimism
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: active users (daily) calculation

- **Purpose**: Counts distinct users interacting with Sound.xyz daily across all activity types
- **Logic**: User addresses are extracted from various Sound.xyz protocol events across Ethereum and Optimism. Edition buyers are identified from minter contract events using `buyer` fields, Sound Swap traders are identified from buy/sell events using `buyer` and `seller` fields, and creators are identified from edition creation events using `deployer` fields or transaction sender addresses. Interactions are grouped by day and aggregated using distinct user counts across multiple dimensions including chain, user type, and product.
- **Key fields**: `buyer`, `seller`, `deployer`, `from_address`, and `block_timestamp`

### Component B: Daily fees calculation

- **Purpose**: Aggregates all fee revenue generated by Sound.xyz protocol activities
- **Logic**: Fees from primary sales (minting) and secondary sales (trading) are combined. Primary sales include `platformFee` and total payment amounts (`requiredEtherValue`) from minter contract events, plus calculated amounts for legacy artist edition purchases using time-based price lookups. Secondary sales include artist royalty fees (`artistFee`) and `platformFee` from Sound Swap trading events. All fee amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `platformFee`, `requiredEtherValue`, `artistFee`, `block_timestamp`, and `token_address`

### Component C: Average fees per user calculation

- **Purpose**: Calculates the ratio of total fees to active users (daily)
- **Logic**: Daily fees and daily active user counts are calculated independently and joined by date to compute the ratio. Fee amounts are normalized and converted to USD using end-of-day price feeds. Both metrics are aggregated using daily boundaries based on blockchain timestamp truncation to UTC day granularity. Average fees per user are calculated by dividing the total daily fees by the count of active users (daily), with a zero-filling strategy applied to handle days without activity.

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

Sound.xyz

Average fees per user (AFPU)

Average fees per user (AFPU)

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