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 Expenses Methodology

## 1. Overview

The X2Y2 expenses metric measures the daily USD value of token incentives distributed by the X2Y2 NFT marketplace to its users. This metric tracks platform costs associated with reward distribution programs designed to incentivize trading activity. The calculation treats distributed token rewards as operational expenses, providing insight into X2Y2's user acquisition and retention costs through token-based incentive programs.

## 2. Data sources

- **Ethereum reward distribution events**: Parsed `Reward` events from X2Y2's reward distributor smart contracts, specifically `ListingRewardDistributorV2` and `RewardDistributorV3`
- **Blockchain transaction data**: Ethereum transaction logs containing reward claim events with user addresses, token amounts, and timestamps
- **End-of-day price feeds**: Token price data for converting X2Y2 token amounts to USD values
- **Token metadata**: X2Y2 token contract information including decimal places for proper amount calculations
- **Contract addresses**: X2Y2 deployer and token contract addresses for filtering and identification

## 3. Step-by-step calculation

### Component A: Reward claims extraction
- **Purpose**: Extract all token reward distribution events from X2Y2's reward distributor contracts
- **Logic**: Parse `Reward` events from two X2Y2 reward distributor contract versions on Ethereum blockchain. Capture essential data including block timestamps, transaction hashes, log indices, user addresses who claimed rewards, and token amounts distributed. Filter out any rewards claimed by the X2Y2 deployer address to exclude internal or administrative transactions from the expense calculation
- **Key fields**: `block_timestamp` for timing, `user` address for reward recipients, `amount` for token quantities distributed, `transaction_hash` and `log_index` for event identification

### Component B: Token incentives calculation  
- **Purpose**: Aggregate daily token reward distributions and convert to USD values
- **Logic**: Group reward claim events by day using timestamp truncation to daily boundaries. Sum token amounts distributed each day across all users and reward types. Apply token decimal correction to ensure proper token unit calculations. Convert X2Y2 token amounts to USD using end-of-day price feeds, matching token prices to the date of reward distribution
- **Key fields**: Daily aggregated `token_incentives` amounts, `timestamp` truncated to day grain, `chain_id` for Ethereum identification, USD-converted reward values

### Final aggregation
- **Combining components**: The token incentives values calculated in Component B are directly used as the expenses metric, treating distributed rewards as operational costs
- **Currency conversion**: X2Y2 token amounts are converted to USD using end-of-day price feeds matched to the distribution date, with proper decimal adjustment for token precision
- **Time aggregation**: Events are aggregated to daily boundaries using timestamp truncation, ensuring consistent daily expense reporting
- **Final calculation**: The expenses metric equals the daily USD value of token incentives distributed to users, representing X2Y2's cost of user incentive programs. Any gaps in the time series are filled with zeros to maintain consistent daily reporting

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

Total project operating and incentive expenses.

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Expenses

Expenses

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