How are Neighborhood NFT earnings estimates calculated?
Neighborhood NFT earnings estimates are designed to give you a simple, transparent view of how a Neighborhood could earn on-chain royalties as people mint Address NFTs in that postal code. These estimates are not a forecast or guarantee—they’re a way to understand the mechanics of how earnings could accrue over time.
Each time a Standard Address NFT mints in your Neighborhood, a portion of the mint price is paid out as a royalty to the Neighborhood NFT owner. Earnings estimates begin by estimating how many mintable street addresses exist in a ZIP code, then applying the Standard Address NFT price and the Neighborhood mint royalty rate.
Neighborhood NFT Earnings Formula
Buildings(1)
× Standard NFT Price (ETH)
× Neighborhood Mint Royalty (decimal)
| Component | Description |
|---|---|
| Buildings(1) | An estimate of how many distinct, mintable street addresses exist in a ZIP code. Calculated as: Buildings = Residential Addresses × Commercial Uplift and floored at a minimum of 50 buildings per ZIP. |
| Residential Addresses(2) | Estimated from housing units: Residential Addresses = Housing Units ÷ Avg. Households per Building If housing-unit data is missing, fallback is: Population ÷ Avg. Household Size. |
| Avg. Households per Building | Represents how many housing units typically correspond to one street address, based on population density. Dense urban ZIPs tend to have large apartment buildings, while rural ZIPs have mostly single-family homes. |
| Commercial Uplift | A small multiplier that increases in higher-density ZIP codes to reflect additional commercial or POI addresses beyond purely residential units. |
| Standard NFT Price | The mint price (in ETH) of a Standard Address NFT. Earnings estimates assume new Address mints use the prevailing Standard price. |
| Neighborhood Mint Royalty | The share of each Standard Address NFT mint paid to the Neighborhood NFT owner. Example: A 10% royalty on a 0.01 ETH mint yields 0.001 ETH. |
Density-Based Address Model
| Population Density | Avg. Households per Building | Commercial Uplift |
|---|---|---|
| < 1,000 | 1.5 | 1.05 |
| 1,000–4,999 | 2.5 | 1.10 |
| 5,000–19,999 | 5.0 | 1.25 |
| 20,000–39,999 | 10.0 | 1.45 |
| ≥ 40,000 | 15.0 | 1.60 |
Population density bands help estimate how many housing units correspond to a single street address, and how many additional commercial addresses may exist. These values are derived from Census data, postal datasets, and observed differences between rural, suburban, and urban ZIP codes.
For details on how Neighborhood mint prices are calculated, see: Neighborhood NFT Pricing Formula .
📍 Example: Estimated Earnings for ZIP Code 10001 (New York, NY)
Sample Inputs (Illustrative Only)
- Housing Units: 12,000
- Population Density: 35,000 people per sq. mile
- Avg. Households per Building: 10.0
- Commercial Uplift: 1.45
- Standard Address NFT Price: 0.01 ETH
- Neighborhood Mint Royalty: 10%
Step 1: Estimate Residential Addresses
Residential Addresses = 12,000 ÷ 10.0 = 1,200 addresses
Step 2: Apply Commercial Uplift
Buildings = 1,200 × 1.45 = 1,740 buildings (minimum 50 applies only if lower)
Step 3: Apply Mint Price and Royalty
Estimated Earnings = 1,740 × 0.01 ETH × 0.10 = 1.74 ETH
This example is for illustration only. Actual minting behavior varies, and not every address will mint an NFT. Earnings depend entirely on user activity and market conditions.
Earnings estimates are for informational purposes only and do not represent guaranteed returns. Actual results depend on future user activity, protocol parameters, and market conditions at the time of each mint.
