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 Revenue Methodology

## 1. Overview

Sound protocol revenue represents the total platform fees earned by Sound from both primary NFT sales (mints) and secondary marketplace transactions. Sound operates as a music-focused NFT platform that charges protocol fees on minting new music collectibles and trading them on their Sound Swap marketplace. The metric aggregates daily protocol fee income across Ethereum and Optimism chains, converted to USD for standardized reporting.

## 2. Data sources

The revenue calculation uses several types of blockchain and external data:

- **Primary sale events**: Parsed `Minted` events from Sound's minter contracts on Ethereum and Optimism, including MerkleDropMinter and RangeEditionMinter contract families and their various versions
- **Secondary sale events**: Parsed `Bought` and `Sold` events from Sound Swap (SAM) marketplace contracts across multiple versions on Ethereum and Optimism  
- **Legacy artist events**: Parsed `EditionPurchased` and `EditionCreated` events from early artist edition contracts on Ethereum
- **Artist edition pricing**: Historical price change events that track pricing modifications for legacy artist editions over time
- **End-of-day price feeds**: Token price data for ETH and OP tokens to enable USD conversion
- **Token metadata**: Decimal precision information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Primary sale protocol fees

- **Purpose**: Captures protocol fees earned from NFT minting activities across Sound's platform
- **Logic**: Extracts `Minted` events from various minter contract types including MerkleDropMinter, RangeEditionMinter, and their branded variants (Bankless, Bonfire, InvinMusic). Each minted NFT generates a `platformFee` that represents Sound's revenue share from the primary sale. The component processes events from both Ethereum (using WETH as the payment token) and Optimism (using native OP token). Legacy artist edition purchases are also included, though these don't generate protocol fees and are processed separately by joining with historical price data
- **Key fields**: `platformFee` (protocol fee amount), `edition` (NFT collection address), `quantity` (number of NFTs minted), `requiredEtherValue` (total sale amount)

### Component B: Secondary sale protocol fees  

- **Purpose**: Captures protocol fees from marketplace trading on Sound Swap
- **Logic**: Processes `Bought` events from Sound Swap's automated market maker contracts (SAM, SAMV1, SAMV2) on both Ethereum and Optimism. When users buy NFTs through Sound Swap, they pay a `platformFee` to the protocol in addition to the purchase price. Sell events are tracked for completeness but don't generate protocol fees for Sound. The component handles multiple SAM contract versions deployed over time
- **Key fields**: `platformFee` (protocol fee from buy transactions), `edition` (NFT being traded), `totalPayment` (total amount paid by buyer), `totalPayout` (amount received by seller)

### Final aggregation

- **Combining components**: Protocol fees from both primary sales (mints) and secondary sales (Sound Swap trades) are combined using a union operation, creating a unified revenue stream
- **Currency conversion**: All fee amounts are converted from native tokens (ETH, OP) to USD using end-of-day exchange rates, with proper decimal adjustment for token precision
- **Time aggregation**: Revenue events are grouped by day using timestamp truncation to create daily revenue totals
- **Final calculation**: The daily protocol revenue equals the sum of all `platformFee` amounts from mints and marketplace buys, converted to USD and aggregated by day. Missing days are filled with zero values to maintain complete time series data

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Sound.xyz

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