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 Token incentives Methodology

## 1. Overview

The Sound token incentives metric measures the USD value of token-based rewards or incentives distributed by the Sound protocol to users, creators, or other participants. For Sound protocol, this metric is currently set to zero, indicating that the protocol does not distribute token incentives as part of its business model. The metric maintains the same time granularity and dimensional structure as other Sound financial metrics but hardcodes the incentive amount to zero across all time periods and chains.

## 2. Data sources

The metric leverages the same data infrastructure as Sound's fees calculation but sets the incentive values to zero:

- **Ethereum Sound protocol event logs**: Parsed events from Sound's minting contracts including `MerkleDropMinter`, `RangeEditionMinter`, and legacy `Artist` contracts for primary NFT sales
- **Optimism Sound protocol event logs**: Parsed events from Sound's minting contracts for primary NFT sales on Optimism
- **Sound Swap trading events**: Parsed `Bought` and `Sold` events from Sound's secondary marketplace (SAM contracts) on both Ethereum and Optimism
- **Legacy artist edition events**: Historical `EditionCreated` and `EditionPurchased` events from pre-minter contract artist editions
- **End-of-day price feeds**: ETH and WETH price data for USD conversion of transaction values
- **Token metadata**: Decimal precision data for proper amount calculations
- **Chain availability data**: Supported blockchain networks for filtering

## 3. Step-by-step calculation

### Component A: Base structure from fees model
- **Purpose**: Establishes the temporal and dimensional framework for the token incentives metric
- **Logic**: References the Sound fees calculation model to inherit the same daily timestamp grain, product identifier (sound), and chain identifiers. The fees model combines primary sales volumes from NFT mints with secondary royalty fees from marketplace trades, processes multiple contract versions across Ethereum and Optimism, converts ETH-denominated amounts to USD using end-of-day price feeds, and aggregates to daily totals
- **Key fields**: Inherits `timestamp` (daily), `timestamp_grain` (day), `product_id` (sound), and `chain_id` fields from the fees calculation

### Component B: Token incentives assignment
- **Purpose**: Sets the actual token incentive values for the Sound protocol
- **Logic**: Hardcodes the `token_incentives` field to 0 for all records, indicating that Sound protocol does not currently distribute token-based rewards or incentives to users, creators, or other participants
- **Key fields**: Creates `token_incentives` field with value of 0 across all time periods and chains

### Final aggregation
- **Combining components**: The zero token incentive values are combined with the inherited dimensional structure from the fees model
- **Currency conversion**: No conversion needed since all values are zero, but maintains USD denomination consistency with other financial metrics
- **Time aggregation**: Maintains daily grain boundaries aligned with the underlying fees calculation
- **Final calculation**: The final metric value is consistently 0 USD across all days and supported chains, representing the absence of token incentive distributions in Sound protocol's current business model

## Schema standardization and validation
The final output applies the `finalize_metric_token_incentives` macro with a fill_zeros strategy to ensure proper schema validation, ID validation, and forward-filling of any gaps in the time series with zero values. Chain availability filtering ensures only supported blockchain networks are included in the final dataset.

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

Value of native tokens distributed as incentives.

Sound.xyz

Token incentives

Token incentives

Competitive landscape

Chain breakdown