INTRODUCTION
SAND is the main utility token of The Sandbox ecosystem. It is an ERC-20 utility token and there is a fixed maximum supply of 3,000,000,000 SAND tokens.
Suffice it to say that the SAND token is the basis for all transactions, gaming and all other interactions on the platform. But, in this subsection to the Leo Finance The Sandbox (SAND) Coin Guide, let's investigate what some of the major specific uses for the SAND token are within the Sandbox metaverse.
WHAT IS THE SANDBOX (SAND) USED FOR?
The major specific use cases for the SAND token include:
- Within The Sandbox ecosystem, the SAND token is utilized as the medium of exchange. The SAND token must be used to affect any transaction in The Sandbox Marketplace, and will specifically be needed for the purchase of: LAND; ASSETs; customization of Avatars; and, CATALYSTS and GEMS.
- Holders of the SAND token may participate in platform governance if they so choose.
- Voxel artists on the platform will need SAND tokens to be able to upload their creations to The Marketplace for sale affecting monetization.
- Not all of the games offered for play on The Sandbox are free to play. Some developers in their discretion may choose to charge small amounts of SAND for access to their game.
- Some of the games offered on The Sandbox are of the play-to-earn type. Accordingly, SAND tokens may be earned by playing certain games on the platform.
- Some developers on The Sandbox may opt to pay SAND tokens for contest rewards held on their LAND.
- Should a developer require the services of a designer or artist to collaborate on a full project, or, alternatively, need to commission artists to design and create ASSETs, the SAND token will be needed for compensation for the hiring.
- A 5% transaction fees is charged on every SAND transaction on the platform. From this fee, 50% is allocated to the platform's Foundation Fund and 50% is allocated to the platform's Staking Pool. Token holders who have chosen to stake tokens are paid rewards from the Staking Pool. Grants to incentivize the creation of high quality games and ASSETs are made to designers and artists from the Foundation Fund.
- SAND tokens can be staked onto LAND as a source of passive income. Likewise, the staking of SAND tokens onto LAND is the sole mechanism for production of GEMS and CATALSTs in the system which items may either be used by the staker or sold in the Marketplace. At present this feature is not yet available, but is planned.
- SAND tokens may also be staked on UniSwap by providing liquidity to the SAND/ETH trading pair. By staking in this fashion, traders share a monthly distribution of SAND tokens as a reward distributed pro rata relative to the stakers percentage of total liquidity in a one month period. Commencing on April 26, 2021, unique NFTs may also be earned by this staking. Rewards are multiplied by the number of LAND held in the wallet used to stake. As such, the yield is higher with the more LAND held in said wallet in accordance with the following schedule:
- SAND tokens may be staked into the UniSwap liquidity mining pool through the official Sandbox staking page.
CONCLUSION
As demonstrated above, the SAND token has many uses within The Sandbox ecosystem. The token is the powerhouse present in The Sandbox platform which permits the monetization of the gaming experience boasted by the protocol.