Creators create and sell NFTs on Zora. They receive a cut of the primary sales (supply-side fees).

Zora is a non-custodial NFT minting protocol built on Ethereum and launched in 2021.

Team and investors own and govern the protocol. They currently take a cut the primary sales paid by collectors (revenue).

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Zora

# Zora Supply-side fees Methodology

## 1. Overview

Supply-side fees measure the net value that accrues to NFT creators on the Zora marketplace after deducting protocol revenue. This metric represents the creator earnings from NFT mint fees, calculated as total fees collected from users minus the portion retained by the Zora protocol as revenue.

## 2. Data sources

- **Zora smart contract events**: Parsed event logs from Zora's NFT marketplace contracts deployed on Ethereum, Optimism, and Base networks
- **ERC721 mint transactions**: `721Drop_Sale_event` logs capturing NFT mint sales including quantity and price per token
- **ERC721 fee distributions**: `721Drop_MintFeePayout_event` logs tracking explicit fee payouts to creators and protocol
- **ERC1155 mint transactions**: `1155_Purchased_event` logs capturing multi-token NFT purchases including quantity and total value
- **End-of-day price feeds**: Token price data for converting native token amounts (ETH, WETH) to USD values
- **Token metadata**: Decimal precision and contract address information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Total fees calculation

- **Purpose**: Calculate the total amount users pay for NFT mints across all token standards
- **Logic**: Combine mint amounts from both ERC721 and ERC1155 transactions, plus any explicit fee payouts. For ERC721 tokens, extract `quantity` and `pricePerToken` fields from `721Drop_Sale_event` logs and multiply them to get total amounts. For ERC1155 tokens, extract the `value` field directly from `1155_Purchased_event` logs. Also include explicit fee amounts from `721Drop_MintFeePayout_event` logs where the `mintFeeAmount` field represents additional fees paid
- **Key fields**: `quantity`, `pricePerToken`, `value`, `mintFeeAmount` converted to USD using end-of-day price feeds

### Component B: Protocol revenue calculation  

- **Purpose**: Calculate the portion of fees retained by the Zora protocol across different fee models
- **Logic**: Combine revenue from three sources based on the fee structure used. For ERC721 tokens with explicit fee tracking, use the same `mintFeeAmount` values from `MintFeePayout` events. For ERC1155 tokens, calculate revenue as mint count multiplied by a fixed fee of 0.000777 ETH per mint. For legacy ERC721 transactions without explicit fee events, calculate revenue as 5% of the total mint amount. Identify legacy transactions by matching mint transactions to fee payout events and selecting those without corresponding fee payouts
- **Key fields**: `mintFeeAmount` for explicit fees, `quantity` for ERC1155 fixed fees, `amount` × 0.05 for legacy ERC721 percentage fees

### Component C: Legacy fee handling

- **Purpose**: Handle ERC721 mints that use the older 5% fee model without explicit fee tracking
- **Logic**: Identify ERC721 mint transactions that lack corresponding `MintFeePayout` events by performing a left join between mint data and fee payout data, filtering for null matches. For these legacy transactions, apply a fixed 5% fee rate to the total mint amount to estimate protocol revenue
- **Key fields**: `amount` from mint transactions, multiplied by 0.05 legacy fee rate

### Final aggregation

- **Combining components**: Sum all fee amounts to get total fees, then sum all revenue components to get total protocol revenue. Calculate supply-side fees by subtracting total revenue from total fees
- **Currency conversion**: Convert all native token amounts to USD using end-of-day price feeds, applying proper decimal adjustments for token precision
- **Time aggregation**: Group transactions by day using daily timestamp truncation, summing all amounts within each day
- **Final calculation**: Supply-side fees = Total fees - Protocol revenue, representing the net amount flowing to creators after protocol costs

*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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Chain breakdown