The Sandbox’s governance model is centered on the principle of decentralized governance via staking, which enables players to participate and have a voice in game development. Users can participate in gameplay balancing and adjustments through votes and proposals enabled by the SAND token, where SAND holds a ratio to votes of 1:1. On-chain gaming also enables verifiable on-chain data and asset ownership for players, which is a critical aspect of blockchain gaming. Developers can facilitate user engagement through on-chain integrations, using crypto primitives for assets, community, and governance.
On-chain gaming enables the incorporation of community ownership as a core gameplay mechanism, i.e., the ownership economy concept at the core of the Open Metaverse ethos. For example, a community-balanced game allows players to use crypto-enabled governance to make adjustments to smart contracts dictating core on-chain game mechanisms. In on-chain games, guilds can be organized through token-enabled DAO primitives, bringing transparency and digital-native coordination tools to gaming collectives.
The oversight of the SAND token is managed by the Foundation Funds, which are currently managed by The Sandbox Company to:
- Kickstart ecosystem growth
- Support the development of high-quality content (i.e., experiences)
- Oversee the creation and deployment of games in The Sandbox
In the future, all SAND tokens aggregated to the Foundation will be governed by SAND holders, who may allocate reserves as they see fit, all of which must be formalized through on-chain governance and SAND voting. The direct link between a growing treasury and SAND governance gives token holders a means of directing value across The Sandbox ecosystem, whether directly to those passively staking SAND or through more creative means, such as curation, committees, and usage incentives. Alongside governance, The Sandbox team is building a robust system where those who curate with their SAND will be able to earn and collect fees on top of whatever is routed to the treasury, providing a secondary means of income to active SANDBOX users.
The Game Makers Fund and Creators Fund are also managed by the Foundation, which is used to support the ecosystem by offering grants to incentivize high-quality content and game production in The Sandbox. The Foundation has distributed over 23 million SAND tokens to support the community through various activities, including funding 17+ game projects, distributing grants to 100 artists to produce NFTs, supporting local community managers to grow awareness around the globe, sponsoring prizes for various contests, supporting play-to-earn tournaments and cross-gaming activities, and supporting marketing activities to contribute to the growth of awareness about NFTs, Metaverse, and SAND adoption.
The Sandbox currently uses on-chain voting but will eventually enable SAND token holders to maintain governance rights over the Foundation treasury and associated proposals. The on-chain governance model enables SAND token holders to play a vital role in the decision-making process, which ultimately governs The Sandbox’s development and evolution.
To submit a governance proposal on The Sandbox, a user must first hold SAND tokens in their wallet. They can then submit a proposal through the on-chain governance portal, which allows for decentralized decision-making and voting by SAND token holders.
To submit a governance proposal on The Sandbox:
- Hold SAND tokens: Hold SAND tokens in your wallet. The number of tokens required may vary depending on the specific proposal.
- Create a proposal: Create a proposal outlining your idea for a change or improvement to the ecosystem. The proposal should be detailed and clearly explain the benefits and potential impact of the change.
- Submit the proposal: Once the proposal is complete, you can submit it through the on-chain governance portal. The proposal will be added to the list of active proposals for SAND holders to vote on.
- Voting: SAND token holders can review and vote on active proposals through the on-chain governance portal. The voting process is transparent and democratic, with each token holder having one vote per proposal. Proposals that receive a majority vote are implemented.
- Implementation: Once a proposal has been approved, it's implemented by The Sandbox developers. The proposal’s progress and implementation can be tracked on-chain, allowing for transparency and accountability throughout the process.
