Thread by @verto0912

1/ Time for a new research piece from @DarkForestCap and myself. Today, we dig into @TheSandboxGame and #SAND token. After the May rebalance, $SAND makes up ~11.5% of $MVI. Thanks to @borgetsebastien for feedback and comments.

2/ Without revealing too much, we're pretty excited about The Sandbox. The team is top-notch, executing on their vision to build a true metaverse with play-to-earn dynamics and distributing full ownership to creators and players.

Read more here

metaportal.substack.com/p/metaportal-r…

3/ The Sandbox game has been around since 2012 ⏳

The non-blockchain version generated 40 million downloads with over a million monthly active users (MAUs).

⏩ In 2018, Pixowl was acquired by @animocabrands and the team began work on the blockchain game.

4/ One of the reasons to put the game on-chain was the ability to fairly reward players and creators through NFTs. Something that traditional games can’t do and a massive advantage for NFT games.

5/ We see The Sandbox game as comparable to @Roblox and @Minecraft. It will be based entirely on user-generated content with the alignment of incentives for all stakeholders through the $SAND token.

Play-to-earn will be a powerful driver of adoption.

🎮➡️💴

6/ Let’s talk about $SAND.

1. It’s a utility token and sits in the centre of the Sandbox ecosystem.
2. It's the basis for all transactions & interactions.
3. Players, creators and landowners all need $SAND to participate.

But does it capture value for token holders? 🤔

7/ Value accrual comes from a 5% fee on all txs, including marketplace, entrance fees for experiences, season passes, land rentals, etc

The revenue is split between the Sandbox Co & the future DAO. Same for land & premium NFT sales

So yes, $SAND will capture value for holders🎉

8/ It's worth pointing out that everyone in the ecosystem owns $SAND. Once Sandbox transitions to decentralised governance, token holders will have a greater say in the development of the Sandbox metaverse, including the allocation of the Treasury resources.

9/ So what’s the status of the project today? The game is not live at the moment. The official release should happen this year. We expect the alpha release shortly along with the pre-season 0 event of the game with more to follow.

10/ The marketplace is live and has been in beta since the end of March.📈

Land sales continue with about 50% of all the land sold to date. 📈📈

And the Sandbox ecosystem continues to grow powered by the Game Maker Fund and the Creator Fund.📈📈📈

11/ We did have some questions about the relationship between equity holders in the Sandbox Co. and $SAND holders & if the interests are aligned. We also note the continuous delays in the execution of the roadmap. Although we do have confidence in the team’s ability to execute.

12/ Overall, we believe that the team's vision for an authentic metaverse that empowers players & creatives is well-aligned with the evolution of social & economic structures. 🙏

We have confidence in the team and consider token economics to be well designed to capture value.