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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for Sound represent the total earnings that accrue to music creators from both primary and secondary sales of their NFT music collectibles. This includes creator earnings from initial NFT mints (after platform fees) plus ongoing royalty fees from secondary market transactions. The metric captures the value flowing to artists and content creators in the Sound ecosystem across Ethereum and Optimism.

## 2. Data sources

The calculation relies on several types of blockchain data and external feeds:
- **Sound minter contract events**: Parsed `Minted` events from various Sound minter contracts including `MerkleDropMinter`, `RangeEditionMinter`, and their versioned variants on Ethereum and Optimism
- **Sound artist edition events**: Parsed `EditionPurchased` and `EditionCreated` events from legacy Sound artist edition contracts on Ethereum  
- **Sound Automated Market events**: Parsed `Bought` and `Sold` events from Sound's automated market maker (SAM) contracts on Ethereum and Optimism
- **Token price feeds**: End-of-day price feeds for WETH (Ethereum) and native tokens (Optimism) for USD conversion
- **Blockchain transaction data**: Transaction timestamps and identifiers for event attribution

## 3. Step-by-step calculation

### Component A: Primary sales from modern minter contracts
- **Purpose**: Calculates creator earnings from initial NFT mints through Sound's minter contracts
- **Logic**: Extracts data from `Minted` events across various Sound minter contract types (`MerkleDropMinter`, `RangeEditionMinter`, and their variants) on Ethereum and Optimism. For each mint event, captures the mint quantity, platform fee amount, and total ether value required. The creator's share is calculated as the total required ether value minus the platform fee. Events are categorized as "Primary sales" volume type.
- **Key fields**: `requiredEtherValue` (total sale amount), `platformFee` (protocol's share), `quantity` (number of NFTs minted), `edition` (NFT collection address)

### Component B: Primary sales from legacy artist editions  
- **Purpose**: Calculates creator earnings from legacy artist edition contracts that predate the minter system
- **Logic**: Processes `EditionPurchased` events from legacy artist edition contracts on Ethereum. Since these purchase events don't contain price information, performs a temporal join with `EditionCreated` events to determine the applicable price for each purchase based on timestamp ranges. Uses window functions to establish when each price was valid (from creation timestamp until the next price change). The full purchase amount goes to creators as there were no separate platform fees in this legacy system.
- **Key fields**: `numSold` (quantity purchased), `price` (from edition creation events), temporal ranges for price validity

### Component C: Secondary sales royalty fees
- **Purpose**: Captures ongoing royalty payments to creators from secondary market transactions
- **Logic**: Processes both `Bought` and `Sold` events from Sound's automated market maker (SAM) contracts on Ethereum and Optimism. From buy events, extracts the `artistFee` field which represents royalty payments to creators. Sell events are included for completeness but don't contribute creator fees (royalties are paid by buyers). Handles multiple SAM contract versions across both chains.
- **Key fields**: `artistFee` (royalty amount from buy events), `totalPayment` (total transaction value), `edition` (NFT collection address)

### Final aggregation
- **Combining components**: Unions primary sales data (mint amount minus platform fees) with secondary sales data (royalty fees only) using a simple union operation. Both components include standardized metadata fields for chain, business classification, and volume type identification.
- **Currency conversion**: Converts native token amounts (ETH on Ethereum, native tokens on Optimism) to USD using end-of-day price feeds. Applies decimal correction to account for token precision (18 decimals for ETH/WETH).
- **Time aggregation**: Truncates all timestamps to daily boundaries using `timestamp_trunc` function. Groups transactions by day and sums the USD-converted fee amounts.
- **Final calculation**: The daily supply-side fees equal the sum of (primary mint amounts minus platform fees) plus secondary market royalty fees, all converted to USD. Missing dates are filled with zero values, and results are filtered based on chain data availability.

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

Portion of fees distributed to service providers or supply-side participants.

Sound.xyz

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Supply-side fees

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