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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for X2Y2 represent royalty payments made to NFT creators and sellers during marketplace transactions. This metric captures the fees that flow to the supply side of the marketplace (NFT holders) rather than the protocol itself. The calculation extracts royalty information from X2Y2 trade events, distinguishes between protocol fees and creator royalties, and aggregates the royalty amounts daily in USD.

## 2. Data sources

- **X2Y2 Exchange events**: Parsed `EvInventory` events from the X2Y2 Exchange smart contract on Ethereum, containing comprehensive trade information including buyer, seller, NFT details, price, and fee breakdown
- **End-of-day token price feeds**: Price data for converting native token amounts to USD values
- **Token metadata**: Decimal precision information for proper token amount normalization

## 3. Step-by-step calculation

### Component A: Trade data extraction and fee classification

- **Purpose**: Extract individual trades from X2Y2 marketplace events and separate royalty payments from protocol fees
- **Logic**: The system processes `EvInventory` events from the X2Y2 Exchange contract on Ethereum. Each event contains hex-encoded data fields that are parsed to extract token IDs, NFT contract addresses, and trade prices. The events include a fees array that lists all fee recipients and their percentage shares. A JavaScript UDF converts hex values to decimal numbers for token IDs and addresses. The null address (`0x0000000000000000000000000000000000000000`) is standardized to WETH address for currency consistency. Trade direction is determined by the `intent` field to identify buyers and sellers correctly.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `token_address` for the payment currency, `nft_address` and `token_id` for the traded NFT, `price` for the trade value, and `fees` array containing recipient addresses and percentages

### Component B: Fee amount calculation and categorization

- **Purpose**: Calculate actual fee amounts and distinguish between protocol fees paid to X2Y2 and royalties paid to creators
- **Logic**: For each fee entry in the unnested fees array, the system checks if the recipient address matches the X2Y2 fee address (`0xd823c605807cc5e6bd6fc0d7e4eea50d3e2d66cd`). If it matches, the fee is classified as a protocol fee; if not, it's classified as a royalty payment to creators or sellers. Fee amounts are calculated by multiplying the fee percentage (stored as basis points) by the trade price, then dividing by one million to get the actual percentage. The system ensures trade volume is only counted once by including the volume amount only for the first fee entry (offset 0) to avoid double-counting across multiple fee recipients.
- **Key fields**: `fees_recipient_address` to identify fee destination, `percentage` for fee rate in basis points, `protocol_fee_amount` for marketplace fees, `royalty_amount` for creator payments, and `volume_amount` for trade value

### Component C: Daily aggregation and filtering

- **Purpose**: Sum royalty amounts by day and prepare for currency conversion
- **Logic**: The system groups royalty amounts by day using timestamp truncation to day boundaries. It maintains grouping by chain, business line, market sector, business segment, product version, contract details, and token address. Only the `royalty_amount` field is aggregated as this represents the supply-side fees metric. Protocol fees are excluded from this calculation as they represent demand-side revenue for the marketplace operator.
- **Key fields**: `timestamp` truncated to day level, `royalty_amount` as the core supply-side fee metric, and various metadata fields for categorization

### Final aggregation

- **Combining components**: The daily royalty amounts are processed through currency conversion and decimal correction pipelines
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with decimal corrections applied based on each token's precision (typically 18 decimals for ETH and WETH)
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with the grain marked as 'day'
- **Final calculation**: The final supply-side fees value represents the total USD value of royalty payments made to NFT creators and sellers on X2Y2 marketplace for each day, excluding protocol fees paid to the marketplace operator

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

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

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Supply-side fees

Supply-side fees

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