Creators & users sell NFTs on X2Y2. They receive royalties from secondary sales (supply-side fees).

X2Y2 is a non-custodial NFT marketplace protocol built on Ethereum and launched in 2022.

X2Y2 tokenholders own and govern the protocol. They currently take a cut of the total transaction fees paid by buyers (revenue).

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X2Y2

# X2Y2 Earnings Methodology

## 1. Overview

X2Y2 earnings represents the net profit of the NFT marketplace, calculated as protocol fee revenue minus token incentive expenses. This metric measures the platform's financial performance by subtracting the cost of user acquisition and retention (through X2Y2 token rewards) from the revenue generated through marketplace transaction fees. The calculation follows the standard formula: Earnings = Revenue - Expenses, where revenue comes from protocol fees on NFT trades and expenses come from X2Y2 token distributions to users.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `EvInventory` events from the X2Y2 Exchange contract containing NFT trade details, fees, and participant information
- **Reward distribution events**: Parsed Ethereum `Reward` events from X2Y2's ListingRewardDistributorV2 and RewardDistributorV3 contracts tracking token incentive distributions
- **External data**: End-of-day price feeds for ETH and X2Y2 token USD conversion
- **Token metadata**: Token decimal precision data for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Revenue from protocol fees
- **Purpose**: Calculate daily protocol fee revenue from NFT marketplace trades
- **Logic**: Process X2Y2 Exchange `EvInventory` events to extract trade information and fee structures. Each event contains complex data fields that require JavaScript-based hex-to-decimal conversion to extract token IDs, NFT contract addresses, and trade prices. Fee information is stored as an array of fee recipients and percentages. Filter fees to identify those paid to X2Y2's designated fee address (`0xd823c605807cc5e6bd6fc0d7e4eea50d3e2d66cd`) versus royalty payments to other addresses. Calculate protocol fee amounts using the formula: fee percentage divided by 1,000,000 multiplied by trade price. Handle currency standardization by converting null addresses to WETH addresses for consistent token processing.
- **Key fields**: `protocol_fee_amount` (calculated fee to X2Y2), `token_address` (payment currency), `block_timestamp` (trade timing), `fees.percentage` (fee rate), `detail.price` (trade value)

### Component B: Expenses from token incentives  
- **Purpose**: Calculate daily expenses from X2Y2 token distributions to users
- **Logic**: Process reward distribution events from two X2Y2 reward distributor contracts (V2 and V3) that track X2Y2 token incentives paid to marketplace participants. Extract reward amounts and recipient addresses from `Reward` events. Filter out distributions to the X2Y2 deployer address (`0xdc43b25f3abf65825e52b73441e47f2ce0f9c47d`) to focus on user incentives. Capture the distributed token amounts in X2Y2 tokens (`0x1e4ede388cbc9f4b5c79681b7f94d36a11abebc9`) along with recipient addresses and distribution timestamps.
- **Key fields**: `amount` (X2Y2 token reward amount), `user` (reward recipient), `token_address` (X2Y2 token), `block_timestamp` (distribution timing)

### Final aggregation
- **Combining components**: Revenue and expenses are calculated independently and then combined using the earnings formula
- **Currency conversion**: Both protocol fees (in ETH/WETH) and token incentives (in X2Y2 tokens) are converted to USD using end-of-day price feeds with proper decimal correction applied based on each token's precision
- **Time aggregation**: Both revenue and expenses are aggregated daily by truncating timestamps to day boundaries and summing all amounts within each day
- **Final calculation**: Daily earnings equals daily protocol fee revenue minus daily token incentive expenses, with zero-filling applied to ensure continuous time series data for days with no activity

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

X2Y2X2Y2

Earnings

Earnings

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