What is SAND?
Tech giants in both the Web 2.0 and Web 3.0 space have been heavily betting on the same trend: the rise of the metaverse. It seems like the industry consensus at the moment is that the future of the internet is more decentralized and more immersive than ever before. People could be spending more time in virtual worlds and digital spaces than social media someday in the near future.
To set the groundwork for that future, some blockchain developers have started creating virtual worlds on distributed ledgers. One such world is the Sandbox. The relatively nascent virtual world has already become one of the most popular platforms for metaverse developers and investors. Here’s a closer look at this thriving nano-economy.
Developers Arthur Madrid and Sébastien Borget created the Sandbox game and relaunched it in late-2021. Borget describes it as a “decentralized, community-driven virtual world where creators can design, share, and sell in-world assets.”
Based on the Ethereum network, the virtual world allows users to build, own, and monetize their own unique gaming experiences. Developers, gamers, and investors can all use SAND – an ERC20 token – to participate in the ecosystem and add value in their own unique way.
There are plenty of unexplored ways to use an open-ended virtual world built on a blockchain. However, the three core use cases of Sandbox so far are investing in virtual real estate or LAND, creating or selling virtual goods, and developing premium games.
The platform’s three core products facilitate these activities.
VoxEdit: Allows users to create digital items within the Sandbox ecosystem. These items, based on the ERC-1155 token standard, are in-game non-fungible tokens or NFTs that can be freely traded across the virtual world.
Sandbox Marketplace: The marketplace allows gamers to leverage the InterPlanetary File System (IPFS) to buy, rent, borrow, sell or publish new assets that can be used by other players.
Sandbox GameMaker: as the name suggests, the game maker allows developers to create unique gaming experiences within the virtual world of Sandbox. There is reason to believe this could also allow developers to create virtual events and live concerts such as the ones hosted in Decentraland and Fortnite recently.
A combination of NFTs, DAOs, and DEXes underpin the Sandbox ecosystem. The platform is governed by the Decentralized Autonomous Organization or Sandbox DAO. Developers and investors, meanwhile, must use ERC-20 tokens such as SAND, Gems, and Catalysts to participate in the ecosystem. These tokens are required to create new NFTs or virtual goods.
The tokens are also required to buy LAND – a digital plot of 96×96 meters within the game. 166,464 LAND plots will ever exist.
A fee on all these transactions keeps the ecosystem operational. The Sandbox organization takes a 5% cut from every trade on the platform. 26.50% of all SAND transaction volume goes back into the Foundation. Here’s an overview of how these fees are utilized.
Source: Binance Research
Luxury brand Gucci recently bought a plot of land in Sandbox to introduce branded content to the metaverse.