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 Token incentives Methodology

## 1. Overview

The X2Y2 token incentives metric measures the daily value of X2Y2 tokens distributed as rewards to users of the X2Y2 NFT marketplace. This metric captures the protocol's token-based incentive programs that reward user activity on the platform, providing insight into the scale of token distributions used to drive engagement and liquidity. The calculation aggregates reward claim events from X2Y2's reward distributor contracts and converts token amounts to USD values for standardized reporting.

## 2. Data sources

The metric relies on the following raw data sources:
- **Blockchain events**: Parsed Ethereum `Reward` events from X2Y2's reward distributor contracts (ListingRewardDistributorV2 and RewardDistributorV3)
- **Transaction data**: Ethereum transaction logs containing reward claim details including user addresses, token amounts, and timestamps
- **External data**: End-of-day price feeds for X2Y2 token (address `0x1e4ede388cbc9f4b5c79681b7f94d36a11abebc9`) and token metadata for decimal place corrections
- **Protocol data**: X2Y2 contract addresses and deployer information for filtering

## 3. Step-by-step calculation

### Component A: Reward claim extraction
- **Purpose**: Identifies and extracts all X2Y2 token reward claims from blockchain events
- **Logic**: Parses `Reward` events from two X2Y2 reward distributor contract versions on Ethereum. Extracts key fields including claiming user address (`user`), reward amount (`amount`), transaction details, and contract addresses. Adds protocol metadata including business classification as NFT marketplace, market sector as NFTs, and business segment as marketplace. Assigns version labels based on the specific reward distributor contract (v1, v2, or v3).
- **Key fields**: `user` (claiming address), `amount` (raw token amount), `block_timestamp`, `transaction_hash`, `log_index`, contract `address`

### Component B: Data filtering and standardization
- **Purpose**: Filters out invalid claims and standardizes the data structure
- **Logic**: Excludes reward claims made by the X2Y2 deployer address (`0xdc43b25f3abf65825e52b73441e47f2ce0f9c47d`) to focus only on genuine user rewards rather than protocol operations. Converts token amounts to high-precision numeric format and adds the X2Y2 token contract address (`0x1e4ede388cbc9f4b5c79681b7f94d36a11abebc9`) for downstream price lookups. Standardizes timestamps and adds chain identifier.
- **Key fields**: `claimer_address` (filtered user addresses), `amount` (converted to bignumeric), `token_address`, `chain`

### Component C: Daily aggregation and USD conversion
- **Purpose**: Aggregates reward claims to daily totals and converts to USD values
- **Logic**: Truncates block timestamps to daily boundaries to create daily time series data. Sums all token incentive amounts for each day. Applies USD conversion using end-of-day X2Y2 token price feeds, matching prices to the appropriate date. Corrects for X2Y2 token decimal places (typically 18 decimals) to convert from wei-denominated amounts to human-readable token units before price conversion.
- **Key fields**: `timestamp` (daily grain), `token_incentives` (daily sum), converted USD amounts

### Final aggregation
- **Combining components**: All daily reward totals are summed to create the final token incentives value, with each day representing the total USD value of X2Y2 tokens distributed as rewards
- **Currency conversion**: X2Y2 token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to convert from smallest token units to standard token denominations before price multiplication
- **Time aggregation**: Data is aggregated to daily boundaries based on Ethereum block timestamps, with timestamp truncation ensuring consistent daily grouping
- **Final calculation**: The final metric value represents the total USD value of X2Y2 tokens distributed as incentives on each day, calculated as the sum of (token_amount_corrected_for_decimals × end_of_day_token_price) for all reward claims within each daily period

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

Value of native tokens distributed as incentives.

X2Y2X2Y2

Token incentives

Token incentives

Competitive landscape