Play. Create. Own. Govern. Earn.
Welcome to the Metaverse
The Sandbox team is building a unique virtual world where players can build, own, and monetize their
gaming experiences using SAND, the main utility token of the platform.
SAND holders will be also able to participate in governance of the platform via a Decentralized
Autonomous Organization (DAO), where they can exercise voting rights on key decisions of The Sandbox
ecosystem. As a player, you can create digital assets (Non-Fungible Tokens, aka NFTs), upload them to themarketplace, and drag-and-drop them to create game experiences with The Sandbox Game Maker. The
Sandbox has secured over 50 partnerships including Atari, Crypto Kitties, and Shaun the Sheep to build afun, creative “play-to-earn” Gaming platform, owned and made by players. The Sandbox aims to bringblockchain into mainstream gaming, attracting both crypto and non-crypto game enthusiasts by offering
the advantages of true-ownership, digital scarcity, monetization capabilities, and interoperability

WHITEPAPERDISCLAIMER
The information in this White Paper is subject to change or update and should not be construed as acommitment, promise or guarantee by The Sandbox or any other individual or organisation mentioned
in this white paper relating to the future availability of services related to the use of the tokens or totheir future performance or value.
The document does not constitute an offer or solicitation to sell shares or securities. It does not constituteor form part of and should not be construed as any offer for sale or subscription of or any invitation tobuy or subscribe for any securities not should it or any part of it form the basis of or be relied upon in any
connection with any contract or commitment whatsoever. The Sandbox expressly disclaims any and all
responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or
indirectly from reliance on any information contained in the white paper, any error, omission or
inaccuracy in any such information or any action resulting therefrom.
This is not a recommendation to buy or financial advice, It is strictly informational. Do not trade or invest
in any tokens, companies or entities based solely upon this information. Any investment involves
substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential
complete loss of principal. Investors should conduct independent due diligence, with assistance fromprofessional financial, legal and tax experts, on topics discussed in this document and develop a standalone judgment of the relevant markets prior to making any investment decision.
We have prepared all information herein from sources we believe to be accurate and reliable. However,such information is presented “as is,” without warranty of any kind – whether expressed or implied. All
market prices, data and other information are not warranted as to completeness or accuracy, are based
upon selected public market data, reflect prevailing conditions, and our view as of this date, all of which
are accordingly subject to change without notice. The graphs, charts and other visual aids are provided
for informational purposes only. None of these graphs, charts or visual aids can and of themselves be used
to make investment decisions. No representation is made that these will assist any person in making
investment decisions and no graph, chart or other visual aid can capture all factors and variables requiredin making such decisions.
The information contained in this document may include, or incorporate by reference, forward-looking
statements, which would include any statements that are not statements of historical fact. No
representations or warranties are made as to the accuracy of such forward-looking statements. Any
projections, forecasts and estimates contained in this document are necessarily speculative in nature andare based upon certain assumptions. These forward-looking statements may turn out to be wrong andcan be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors,
most of which are beyond control. It can be expected that some or all of such forward-looking assumptions
will not materialize or will vary significantly from actual results.

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Abbreviations
AML/CFTAPI
DLT
IP

Anti-Money Laundering and Combating the Funding of Terrorism
Application Programming Interface
Distributed Ledger Technology
Intellectual Property

IPO
MAU
ML/FT
NFT
P2P
TSB
UGC

Initial Public Offering
Monthly Active Users
Money Laundering and Funding of Terrorism
Non-Fungible Token
Peer-to-peer
The Sandbox
User Generated Content

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Table of Contents
DISCLAIMER

2

Abbreviations

3

Table of Contents

4

Executive Summary

6

A User-Generated Content Ecosystem

7

Blockchain Gaming with NFTs

8

What is SAND and what is it used for?

8

What do we plan next?

9

Associated challenges and risks

10

Historical Background

11

The Sandbox Platform

12

Mission12

Game Overview

12

LAND and the LANDS Map

13

Avatar

17

SAND

17

SAND Stakeholders

17

SAND Revenue Streams

17

Benefits

17

Market Overview

18

Gaming Creator Market

19

Creator Market

20

Player Market

21

Market Solution

21

Roadmap21

Previous Milestones

21

Future Milestones

23

Major Features in the Press

25

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Gameplay Experience26

Map - LANDS28

ASSETS Marketplace28

VoxEdit29

Economy30

Tokenomics

31

Project Financing and Initial Revenue

34

Initial Exchange Offering

34

Other Dynamics

35

Technology

36

Future Technology Integrations

36

Multiple Class Fungible Token (MCFT)

37

Interoperability

37

Meta Transactions

38

Technology Solution Breakdown

38

Program Agents

39

Game Engine

40

Wallets

41

Security

41

The Team

42

Core Team

42

Advisors

43

Services Providers

43

CONCLUSION

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The Whitepaper
1. Executive Summary

The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences inthe Ethereum blockchain using SAND, the platform’s utility token.
Our vision is to offer a deeply immersive metaverse in which players will create virtual worlds and games
collaboratively and without central authority. We are aiming to disrupt the existing game makers like
Minecraft and Roblox by providing creators true ownership of their creations as non-fungible tokens(NFTs) and rewarding their participation with our utility token – SAND.
In the current game market, the centralized ownership and control of user-generated content limits
creator rights and ownership. Central control over the trading of virtual goods created by players restricts
them from generating fair value for their creations. Compounding this, it can be difficult to prove creativeownership of works, especially as content is copied, altered, and built upon.
With The Sandbox, we aim to overcome these limitations while accelerating blockchain adoption to growthe blockchain gaming market. We will do this by building a voxel gaming platform where creators areable to craft, play, share, collect, and trade without central control, enjoying secure copyright ownershipwith the ability to earn cryptocurrency (SAND). This copyright ownership will be established andguaranteed through the use of NFTs, where every in-game item will have a unique and immutable
blockchain identifier.

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1.1.

A User-Generated Content Ecosystem

The Sandbox gaming ecosystem consists of three integrated products that together provide acomprehensive experience for user-generated content (UGC) content production.

A.

VOXEDIT: This simple to use yet powerful free 3D voxel modelling package allows users to create
and animate 3D objects such as people, animals, foliage, and tools, and export them into The
Sandbox marketplace to become game ASSETS.

B.

MARKETPLACE: The Sandbox’s web-based marketplace allows users to upload, publish, and sell
their creations (ASSETS) made in VoxEdit, as Tokens (Both ERC-721 and ERC-1155 tokens).

C.

GAME MAKER: Anyone who owns ASSETS, either by making them in VoxEdit or purchasing them,can utilize them with the third and most important ecosystem product, the Game Maker and theGame itself. This product, when launched in Game Maker mode, enables users to place and use
their ASSETS within a piece of LAND (an ERC-721 token) that they can own in the virtual world.
Users can decorate their LAND with ASSETS, and more importantly, implement interesting andnuanced gameplay mechanics by assigning predefined behaviors to the ASSETS through visual
scripting nodes, turning a LAND from a decoration experience into a potential full game
experience.

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1.2. Blockchain Gaming with NFTs
The Sandbox virtual world uses blockchain technology and NFTs to empower the players and creators.
NFTs are an emerging segment in the global game market: virtual tokens for digital scarcity, security andauthenticity. Each NFT is distinct or unique, it is indivisible and it is not interchangeable for another.

Comparison of Fungible versus Non-fungible Tokens

Through the use of NFTs, The Sandbox users will be able to benefit from:A.

TRUE DIGITAL OWNERSHIP: Gamers are the true and perpetual owners of their digital items, even
if the game was shut down or abandoned. With blockchain, every game item can be tokenized,
allowing gamers to decide how they want to trade, sell, or gift their items.

D.

SECURITY AND IMMUTABILITY: Digital game items can be easily tokenized and traded in primaryand secondary markets that are managed and facilitated by blockchain technology. Items basedon scarcity and demand usually invite fraud and theft, but these risks are minimised on blockchain
because it is a distributed ledger.

E.

TRADING: Blockchain-based gaming platforms can provide users with ultimate control over theirdigital assets. They can buy and sell items freely without concern that they will be ripped off orthat a platform will close and cancel all the value of their in-game items.

F.

CROSS-APPLICATION INTEROPERABILITY: Blockchain provides capacity for games to utilize
shared assets. ASSETS, avatars, LANDS and any other game elements can be used in other games
that allow it. These game items are no longer confined by a narrow digital ecosystem.

The Sandbox metaverse uses several tokens to create a circular economy between all the profiles of users
who will interact with its platform namely the players, creators, curators and LAND owners. These are the
LANDS, ASSETS and SAND, a token based on the ERC20 protocol which will act as the official currency inthe ecosystem when purchasing goods and services within the game marketplace (amongst other rights).

1.3. What is SAND and what is it used for?

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SAND is an essential part of The Sandbox platform and The Sandbox are working on establishing key
mechanics that makes it intrinsically tied to The Sandbox platform and its value. SAND is an ERC-20
utility token built on the Ethereum blockchain that serves as the basis for transactions within The
Sandbox, and has the following uses:●

Access The Sandbox platform: Players spend SAND in order to play games, buy equipment, or
customize their Avatar character—and can potentially collect SAND through gameplay. Creators
spend SAND to acquire ASSETS, LANDS, and through Staking. LAND Sales drive demand for SAND
to purchase LANDS. Artists spend SAND to upload ASSETS to the Marketplace and buy Gems fordefining Rarity and Scarcity.

●

Governance: SAND is a governance token that allows holders to participate in Governancedecisions of the platform, using a DAO structure. They can exercise voting rights on key
elements such as Foundation grant attributions to content and game creators and feature
prioritisation on the platform Roadmap. SAND owners can vote themselves or delegate voting
rights to other players of their choice.

●

Staking: SAND allows for staking, which allows for passive revenues on LANDS: you get more
SAND by staking it. This is also the only way to get valuable Gems and Catalysts, needed for
ASSET creation.

●

Fee Capture model = 5% of all transaction volume carried out in SAND tokens (Transaction Fees)
shall be allocated with 50% to the Staking Pool as rewards for token holders that Stake SAND
tokens and 50% to the ''Foundation.''●Foundation: The role of the Foundation is to support the ecosystem of The Sandbox, offering
grants to incentivize high quality content & game production on the platform. To date, theFoundation has funded over 15 game projects and granted 100 artists to produce NFTs ahead of
the public Launch in December 2020. The overall valuation of the metaverse grows through thevaluation of all games funded by the Foundation, creating a virtuous circle to enable funding
bigger games.

1.4. What do we plan next?
We have a strong product roadmap ahead and a top team to execute a strong vision to build a unique
virtual world gaming platform where players can build, own, and monetize their gaming experiences andspread the power of blockchain as the lead technology in the gaming industry. All these together withwhat we have achieved so far resulted in TSB being awarded a recognition as the most expected
blockchain game in 2020.
https://www.blockchaingamer.biz/news/12585/blockchain-game-sentiment-positive-the-sandbox-mostanticipated/

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In the short term, we are launching the fourth LAND presale and Game Maker. This will be complemented
with the SAND public launch. As such, we expect to have SAND available for individuals and corporations
in order to increase liquidity and availability of it with the main purpose to collaborate with the community
growth and ecosystem flow.
In relation to the proposed SAND offering, the community of creators and players will need to get accessto SAND. We plan to make it accessible to the community through multiple ways with controllable supply
mechanisms, such as purchasing SAND from multiple exchanges.
As the community increases in terms of the number of creators, players and ASSETS exchanged in themarketplace, there might be an increased need for SAND within the ecosystem. Therefore, while the total
supply of SAND is fixed, the initial amount of SAND offered will provide a scarcity effect reducing the SAND
available per capita and therefore fostering demand.

1.5. Associated challenges and risks
It is the responsibility of any purchaser of SAND to inform themselves of, and to observe and comply with,all applicable laws and regulations of any relevant jurisdiction. Prospective purchasers for any SAND shallbe expected to consider the risk factors identified in this section. If any of the indicated risks were tomaterialize, then they could have a negative impact on the Issuer’s finances and operational performance
which can hinder the ability of the Issuer to fulfil its obligations under this whitepaper.
The challenges and risks are identified by the board of administration of the Issuer as at the date ofregistration of this whitepaper. This does not exclude the possibility of there being other risk threats andthe purchaser must be aware that the impact on the Issuer may be heightened due to a combination ofseveral risks materializing simultaneously.
One of the main challenges in the project is the rate of adoption of the community of artists and creators
to start exchanging assets, which will be a key point behind the demand generation of SAND. As such, we
are focused in developing a strong, multi-platform product that can spread massively by offering a tool tocreate voxel art that is focused on solving problems and community needs. We are therefore developing
strong communities in different areas of the world with a strong focus in Asia, where we believe the rateof adoption and learning curve will be steeper. The project success rate will be dependent upon thepriority and preference of consumers and its ability to swiftly anticipate, identify and capitalise upon thesepriorities and preferences.
The Issuer operates in an emerging and disruptive industry that is under rapid and dynamic development.
This includes, but is not limited to, the developments relating to the business itself, the underlying
technology, and the regulatory and legal implications thereof. Specifically, in relation to public knowledge
and understanding of emerging technologies, such distributed ledger technologies, smart contracts andother innovative technology arrangements, are still limited as at the date of registration of thiswhitepaper. The risks arising out of such may not be fully comprehended as of yet and new additionalrisks may arise in the future.
As the Issuer’s undertaking is reliant on the continuous and proper functioning of its technology
infrastructure, the Issuer is subject to a variety of risks relating to the proper maintenance thereof. Theserisks include, but are not limited to, cyber-attacks, data theft or other unauthorised use of data, and othermalicious interferences. Certain parts of the infrastructure may be outsourced to third parties. In such

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cases, the Issuer is reliant upon technology arrangements developed by such third parties for the runningof its undertaking, and it is exposed to the risk of failures in such technology arrangements.
The Issuer is subject to various laws, including regulations and rules issued thereunder, and is at risk inrelation to changes in the laws and the timing and effects of changes in the respective legislation. This
includes changes in the interpretation thereof which cannot be predicted by the Issuer.
The growth of the Issuer and its undertaking is partially attributable to the efforts and abilities of themembers of its management team and other key personnel, particularly its board of administration. If one
or more of the members of this team were unable or unwilling to continue in their present position, theIssuer might not be able to replace them within a short time, which could in turn have a material adverse
effect on the Issuer’s business.

2. Historical Background
The Sandbox is the latest version of The Sandbox franchise, which has helped create the sandbox world
creation games genre on iOS and Android smartphones since its launch in 2012:●

40,000,000 players have downloaded The Sandbox franchise;●

The latest iteration, The Sandbox Evolution, has over 1,200,000 MAUs, with up to2,600,000 at peak;●

70,000,000 worlds have been created; and●Over 100,000 worlds are created every day.

The new blockchain-based version of The Sandbox has already received several awards:-

Voted the most anticipated blockchain game of 2019/2020 by BlockchainGamer.biz https://www.blockchaingamer.biz/news/12585/blockchain-game-sentiment-positive-the-www.sandbox.game

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sandbox-most-anticipated/-

Ranked #13 in the Top 50 Blockchain Games Companies of 2020 Report by
DappRadar.com - https://www.blockchaingamer.biz/features/13597/top-50-blockchain-gamecompanies-2020/

The Sandbox combines the large, active and enthusiastic franchise audience with a richer gaming
environment based on a new 3D voxel1 engine, and the revolutionary ability of blockchain
integration with NFTs2 to offer players creative and financial control of the content they make.

3. The Sandbox Platform
3.1.

MissionThe Sandbox team’s mission is to build a system where creators will be able to craft, play, share,
and trade without central control, enjoying secure copyright ownership with the ability to earn
SAND.
The Sandbox team believes these innovations are important, for while the current market forvoxel-based creation games already has 500,000,000 Creators and 160,000,000 MAUs, it suffersfrom four key problems that could hinder future growth if not addressed:

●
●

●
●

3.2.

The centralization of user-generated content in dominant titles such as Minecraft andRoblox limits creator rights and ownership;
Central control over the trading of virtual goods created by players restricts players fromgenerating fair value for their creations, limiting what they can or cannot sell and/or taking
a significant portion of the sales revenue;
Given the nature of voxel art, it can be difficult to prove creative ownership of works, especiallyas content is copied, altered and built upon; andExisting game marketplaces are based on fiat currencies, which do not support true
microtransactions and are vulnerable to credit card fraud that can unbalance in-game economies.

Game Overview

1

Voxels, or volume pixels, are analogous to 3D pixels, with each voxel representing a value on a defined grid in three-dimensional
space

2

Non-fungible items are unique and cannot be replaced by another equal part or quantity, as explained in this article:
https://medium.com/crypto-currently/the-anatomy-of-erc721-e9db77abfc24

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At its core, The Sandbox is an ecosystem for Players and Creators, consisting of three main components:a Voxel Editor (named “VoxEdit”), a Marketplace, and the Game itself.
The Sandbox offers a unique way to create, assemble, and share 3D voxel models. We empower Creatorswith intuitive, powerful content creation tools. You can make your own 3D voxel objects, animate them,and publish/sell them in our worldwide marketplace. VoxEdit is our 3D tool that allows anyone to create
or import their own voxel objects, work on them, and effortlessly export them to the marketplace whereusers can turn them into limited ERC-1155 tokens called ASSETS. ASSETS are virtual tokens for digital
scarcity, security and authenticity. They are unique/limited as well as distinct and indivisible.
Blockchain allows creators to have true ownership and thanks to this technology we, in our capacity as
developers, can finally reward players for their time and the hard work they put into content creation,
allowing them to monetize and freely trade their ASSETS.
Our ASSET smart contract allows content to become the new platform, creating a new paradigm. This isbecause they offer multiple uses and are not confined to a single game. This "second-layer
programmability" gives any developer the power to bring a lasting and ever-growing value to the ASSETS,
which can be shared cross-games, cross-platforms and cross-chains.
The Marketplace is the trading environment for ASSETS, where they can be given away for free or sold toother PLAYERS.
The Game is the overall game system where playable experiences can be enjoyed and shared. In theGame, not only can creators profit from their creations, players can play-to-earn by collecting resources,
rewards, and tokens.

3.3.

LAND and the LANDS Map

LANDS are blockchain-backed virtual tokens (using the ERC-721 standard for NFTs) representing physicalparcels of The Sandbox Metaverse. They allow players to own a portion of the Metaverse and thus be able
to host content (ASSETS and GAMES).
The Sandbox Metaverse is based on a map of 166,464 LANDS (408*408). LANDS are physical spaces in the
Metaverse owned by players to create and monetize Games. LANDS are used to publish your game andcan be rented to game creators. Every LAND comes with a set of prebuilt terrains, but it can be
terraformed and modified by the USER who owns it (or other PLAYERS they invite to work on it).
In the future, players will be able to combine LANDS together to form ESTATES In the future, ESTATES will
have the potential to be owned by multiple players to form DISTRICTS.

3.4.

Avatar

An AVATAR is an in-game voxel representation of a player, which may be modified piece by piece by theowner. An avatar has certain specifications and format and comes with a default set of animations such

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as walking, running, jumping and fighting. Specifically, this avatar will be modifiable piece by piece(helmet, arms, torso, legs, etc.) by equipping it with different compatible ASSET tokens.

3.5.

SAND

SAND is an essential part of The Sandbox platform and we are working on establishing key mechanics thatmakes it intrinsically tied to The Sandbox platform and its value. SAND is an ERC-20 utility token built on
the Ethereum blockchain that serves as the basis for transactions within The Sandbox, and has thefollowing uses:●

Access The Sandbox platform: Players spend SAND in order to play games, buy equipment, or
customize their Avatar character. Creators spend SAND to acquire ASSETS, LANDS, andthrough Staking. LAND Sales drive demand for SAND to purchase LANDS. Artists spend SAND
to upload ASSETS to the Marketplace and buy Gems for defining Rarity and Scarcity.

●

Governance: SAND is a governance token that allows holders to participate in Governancedecisions of the platform, using a DAO structure. They can exercise voting rights on key
elements such as Foundation grant attributions to content and game creators and feature
prioritisation on the platform Roadmap. SAND owners can vote themselves or delegate voting
rights to other players of their choice.

●

Staking: SAND allows for staking, which allows for passive revenues on LANDS: you get more
SAND by staking it. This is also the only way to get valuable Gems and Catalysts, needed for
ASSET creation●

Fee Capture model = 5% of all transaction volume carried out in SAND tokens (TransactionFees) shall be allocated with 50% to the Staking Pool as rewards for token holders that Stake
SAND tokens and 50% to the ''Foundation.''●Foundation: The role of the Foundation is to support the ecosystem of The Sandbox, offering
grants to incentivize high quality content & game production on the platform. To date, theFoundation has funded over 15 game projects and granted 100 artists to produce NFTs aheadof the public Launch in December 2020. The overall valuation of the metaverse grows throughthe valuation of all games funded by the Foundation, creating a virtuous circle to enablefunding bigger games.

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Figure: The Use Case for SAND

3.6.

SAND Stakeholders

We have developed a 4 Stakeholders approach to ensure that that the success of TSB. Therefore, we will
set through smart contracts, that revenues generated through The Sandbox will be distributed across 4
stakeholders to provide support to the ecosystems of creators and players as well as to provide theresources needed to grow the market and develop high quality gaming experiences.
These 4 stakeholders are:1.

Foundation Pool: Is designed to ensure that revenue generated through the game isredistributed to support the growth of the ecosystem. The token allocation of this Foundation
pool will be progressively decentralised as we implement a DAO/Community driven solution
towards a decentralized model for the benefit of the token ecosystem.

2.

Staking Pool: Is designed to provide incentives to token holders who are actively locking theirfunds in smart contracts. Its governance will migrate from a centralized decision on year 1
towards a DAO mechanism in the coming years. Token holders that are also active players will
generate an extra yield rewarding their activity.

3.

Company Treasury: This represents the SAND that is owned by the company that comes fromthe proceeds of sales of company owned assets with a 12 months lock-up. The SAND generated
through this Treasury will be sold back to the market to pay operational expenses.

4.

Company Reserve: This is the initial company reserve of 600mm SAND (20% of total Token
Supply). This reserve will be fed with the proceeds of sales of company owned assets with a 6month lock-up.

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3.7.

SAND Revenue Streams

TSB has 5 Revenue Streams where players/creators will exchange SAND. That SAND will be allocatedas detailed below:(1) LAND Sales

50% locked for 12 months then being sold in auction sales andproceeds go to the Company’s Treasury;(2) Company NFTs Sales

25% transferred to the Company Reserve with a lock-up period of
6 months;(3) Player Subscriptions &Services

25% transferred to the “Foundation” to support the growth of thetoken ecosystem(4) Transaction Fees = 5% any
SAND trx

Transaction Fees to be restructured as 5% of all transaction volume
carried out in SAND tokens, including but not limited to SAND
transactions related to sales and rental transactions of LAND (fromTSB to players and from players to players in marketplace), NFT
transactions (from TSB to players and players to players inmarketplace), peer-to-peer in-game payments (e.g., entrance feesfor game experiences), player subscription fees and advertisingfees
50% allocated to the Staking Pool as rewards for token holders
that Stake SAND tokens;
50% of all Transaction Fees shall be allocated to the ''Foundation''(5) Advertising Revenue

25% allocated to the Staking Pool as rewards for token holders
75% allocated to the ''Foundation''

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Figure: The Flows of SAND

3.8.

Benefits

The creation of a decentralized blockchain based gaming platform provides multiple benefits whencompared to current, non-blockchain systems, as illustrated in the chart below:

Without Blockchain(Roblox & Minecraft)

With Blockchain(The Sandbox)
True Ownership●●●●

Assets stored in player wallets throughtokenization of UGC;
User retention of copyright inperpetuity;
Ownership not tied to a game; andCreative authorship is immutable.

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Limited Ownership●●●●

Assets stored in game systems;
Copyright limited and items can be
modified by third parties;
Ownership is tied to the game; andCreative authorship is hard to prove.

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Secure●InsecureLess fraud possibility thanks toblockchain’s record keeping technology.

Fair Revenue Share●●

Creators will receive 100% of the selling
price they set for their creations; andMultiple creators can automaticallyshare payments and revenue.

Decentralized Trading●●

Blockchain allows assets to be shared
between users for collaboration; andPeer-to-peer trading●●

Server-based transactions; andHigh possibility of fraud (13%average).

Limited Revenue Share●●

Creators receive partial payment foritems they sell; andOwnership limited to one player
entity.

Centralized Trading●●

Centralized system limits
collaboration; andAll trades are controlled by 3rdparties.

4. Market Overview
The current gaming market presents favorable conditions that offer The Sandbox a unique opportunity to
exploit on both PC/Mac and mobile platforms, as the opportunity to shift power and earning potential
into the hands of players in the growing UGC gaming market will add significant value to their gameplay
experience.
●
●

●

●

3
4
5

The global gaming market is expected to reach: USD 171.96 billion3 by 2025;
The mobile segment, which is one of The Sandbox’s target platforms, is projected to gain
momentum and exhibit a compounded annual growth rate (CAGR) of 7.3% over the
coming years, owing to increasing smartphone penetration across the globe4;
The online segment is estimated to witness substantial growth over the next eight years,
expanding at a CAGR of 8.6% from 2020 to 2025. This can be attributed to increasing
broadband penetration and growing online betting, gambling, and social network
gaming5; andThe Asia Pacific market is expected to gain traction, attaining a market size of USD 86.84
billion by 2025. Emerging countries such as China, India and South Korea are offering
lucrative growth opportunities for market augmentation, which can be partly attributed
to growing smartphone and Internet penetration in these countries.

https://www.grandviewresearch.com/press-release/global-gaming-market
https://newzoo.com/insights/articles/the-global-games-market-will-reach-108-9-billion-in-2017-with-mobile-taking-42/
https:/prnewswire.com/news-releases/gaming-market-size-worth-17196-billion-by-2025--cagr-65-grand-view-research-inc-671617663.html

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4.1.

Gaming Creator Market

The Sandbox team’s mission is to build a system where creators will be able to craft, play, share,
and trade without central control, enjoying secure copyright ownership with the ability to earn
SAND.
The genre of creator games with voxel graphics is dominated by two key industry players,
Minecraft and Roblox. Minecraft, the leader in the category, saw player numbers grow over 30%
year on year for the last five years, while Roblox placed sixth in the list of top grossing iPhone
mobile gaming apps in the United States as of January 2018, ranked by daily revenue. Roblox isestimated to take in over USD 750,000 per day in revenue. Some creators have reportedly earned
over USD 30,000,0006 in 2017 from the 70%7 revenue share they receive from sales inside theirown creations.
Both games are now available on a variety of platforms including PC, mobile and console. A few
numbers show the scope of the market in tangible terms:
Minecraft
Over 100,000,000 MAU in 2019, up 74,000,000 from 20178;
Over 144,000,000 copies sold worldwide;
In 2014, Microsoft purchased the Minecraft franchise for USD 2.5 billion; andThe purchase price equates to roughly USD 17 per copy sold when averaged across allunits.

●●●●
Roblox●●●●●Had 100,000,000 MAU in 20209;
Raised USD 150,000,000 series G on a USD 5 billion valuation in February 2020;
11,000,000 game titles were published in the Roblox world in 201710;
Over 1,500 titles have each generated over 1,000,000 user visits from other players; andMeep City, which was published in Roblox in February 2016, was the first Roblox game tosurpass 1 billion player visits.

The Sandbox Evolution●●

6

Had 1,200,000 MAUs in 2018; andOver 70,000,000 creations made inside the game by its users.

https://www.forbes.com/sites/alexknapp/2018/03/21/young-developers-earned-over-30m-on-roblox-in-2017-the-gaming-site-kids-visit-more-than-

youtube/#e490ac860942
7
89

https://www.roblox.com/premium/membership?cashout=obc
https://www.engadget.com/2019/09/15/minecraft-112-million-monthly-players/

https://techcrunch.com/2019/08/04/roblox-hits-100-million-monthly-active-users/

10

https://www.businesswire.com/news/home/20180221005527/en/Roblox-Celebrates-Top-2017-Titles-5th-Annual

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CryptoKitties●●●●

Over USD 12,000,000 raised from asset sales11
More than 1,000,000 kitties created12;
Has approximately 500 Daily Active Users; andVarious special themed kitties from partnerships, including the NBA13

Platforms●●●

Sketchfab, one of the largest 3D creators marketplace has approximately 400-1,000
models uploaded per day;
100,000 3D models have been uploaded in over 700 days14; andTurboSquid, the world’s source for professional 3D models has over 500,000 models and3,500,000 users.

4.2.

Creator Market

A primary challenge facing voxel art creators in the current gaming environment is they have
limited or no legal rights to the intellectual property they create. This can result in artists orcreators spending days or even months creating their in-game worlds while receiving little or no
financial benefit.
Another hurdle facing players is establishing creative ownership of their works, especially if
another player or entity copies the original work, modifies it or builds on it. Without a system for
identifying and tracking the ownership of an item from first creation, it’s almost impossible to tell
if work is original or copied.
Lastly, the common reliance on fiat currencies and credit card transactions means the element ofcredit card fraud is never far away. Currently, the ratio of illegitimate transactions in games canbe as high as one out of every 7.5 items sold as the result of credit card fraud, potentially disrupting
the entire in-game economy.
By registering every ASSET created as an NFT, The Sandbox allows creators true ownership ofeverything they create. Creators retain copyright and ownership of everything they create and cansell and trade items while receiving all the benefits for their work. As transactions are made via
blockchain in Ethereum, credit card fraud is eliminated. Aside from addressing all of these issues,
The Sandbox aims to bring even more value to the crafted items of CREATORS. For the first time
ever, CREATORS will be able to see how their uploaded ASSETS come to life when they see themused in a LAND as part of great experiences.
11
12
13
14

https://venturebeat.com/2018/03/20/cryptokitties-blockchain-sensation-raises-12-million/
https://medium.com/@CryptoKitties/thanks-a-million-f422af041d0f
https://www.coindesk.com/nba-superstar-steph-curry-now-first-celebrity-cryptokitty/

https://sketchfab.com/100k

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4.3.

Player Market

Issues such as ownership or compensation are of less concern to players who primarily come togames to play and buy items rather than create and sell them. However, another issue directly
affects these players is that they spend real-world money to buy items in-game, but they have noway to recover this money.
For instance, if they stop playing a game, all the items they bought in it immediately become
worthless. If the game is shut down for any reason, such as a decline in popularity that makes itless profitable, all the player’s in-game purchases vanish into nothing. This is especially true infree-to-play (F2P) games. Purchases are a one-way street. Players spend money to buy things in
the game, but have no way to recover their value if they no longer use an item, and have no way
to sell it to another player legally so they receive no compensation if the game is taken off themarket.

4.4.

Market Solution

The game’s player-centric innovations and improvements over current titles in the market makeit probable that The Sandbox can expand its audience beyond the 40,000,000 players who havedownloaded previous versions of The Sandbox and the game’s current 1,200,000 MAUs.
The first stage of this process is the creation of a semi-decentralized gaming community with someelements under the central control of The Sandbox and other elements decentralized to thecreators and players themselves.

5.

Roadmap

The Sandbox has been operating since 2012, and it follows that this issue of SAND is one of thenext steps in its journey towards creating this decentralized game

5.1.

Previous Milestones

May 2012●

The Sandbox franchise launches on iOS.

February 2013●

The Sandbox is released for Android (1st title).

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March 2014●

The Sandbox surpasses 10,000,000 downloads.

March 2015●

The Sandbox Evolution is announced at GDC conference (2nd title).

June 2016●

The Sandbox Evolution released on iOS, Android & Steam.

July 2017●●●●

The Sandbox Evolution receives two big partnerships:
Bandai Namco brings PAC-MAN to the game;Dreamworks brings Shrek to the game; andThe Sandbox Evolution announced free download in Steam.

April 2018●●

The Sandbox surpasses 40,000,000 downloads and 70,000,000 player creations; andThe Sandbox Surpasses 750,000 followers on Facebook

2019
●
●
●

●

●

●

Funding: We have closed a seed round with a total of USD 3,410,000 raised;
Team: We have assembled the right senior team to execute our vision: 42 resources
located in our 3 offices with 28 FTE in Argentina, 11 in France, 2 in Korea and 1 in Japan;
First revenue: The first two rounds of LANDS presale (2.5% then 5% of the total map
supply) sold out in almost 1 hour — exciting success despite the bearish crypto market in
December 19 then February 2020. Total Revenue generated of 1,400 ETH (approximately
USD 300,000);
Community: Growing with over 10,000 members on our Discord. Our NFT maker VoxEdit
has been downloaded overall 65,000 times and the 100 artists forming part of ourCreator’s Fund have made 3,000 ASSETS already. Over 3,500 accounts on ourMarketplace;
Smart Contracts: All our smart contracts is available publicly on Github and has been
audited by Certik, a leader in security trusted by Binance, Upbit, Bithumb, etc, We scored
93/100, among the highest in the industry;
Korea Presence: Growing over 1,000 highly engaged creators and members. Officialized
our partnership with SBS Seoul Game Academy (reaching out to 2,000 students on 8
campuses in Korea);

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Japan Presence: Started collaboration with Geekhash (a Japanese crypto-marketing
agency, who is also representing Dapp.com), ran several meetups (Devcon5 BlockchainGame meetup and Tokyo Blockchain Games Meetup) and began localizing our Deck,
Website and Medium articles. Opened Twitter with 600 followers and reaching 50,000
impressions per month.

Q1 2020●

VoxEdit – Launch of VoxEdit Beta Release●

LAND Pre Sales – Launch Rounds 2 and Round 3, selling 5% and 10% of the Map in hours

Q2 2020●

Game Maker Closed Alpha – Private release of the Game Maker Alpha to few early testers●

LAND MoonSale – 6 rounds of LAND sales over 5 weeks

Q3 2020●

Game Maker Public Beta – Public Release of the Game Maker Beta●

LAND Presales – Round 4 Opening●

Marketplace – SAND purchases, P2P sales, ASSET minting with Gems & Catalysts●

SAND Public Listing — Binance IEO and listing on public exchanges

5.2.

Future Milestones

Q4 2020●

Game Public Beta – Public Beta Launch of the Games Platform, with dozens of games
available to play (supported by the Foundation)●

Events – Launch of the First Season event with play-to-earn mechanisms●

Multiplayer – Socialize, Chat and Interact with friends in The Sandbox hubs●

LAND Public sale – Regular LAND sales and Support for Game Maker●

VoxEdit – Official Release 1.0

2021-2023

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We are aiming to become one of the leading established key players in the space of virtual worlds withblockchain-based digital LANDS, reaching over 1,000,000 MAUs over the next five years. To achieve this,we will be working on:●

VoxEdit: We will be working directly with communities of artists to add the extra features
they are asking for and facilitate the creation of more advanced models, while keeping in
mind to remain accessible to all;●Marketplace: We will be working on engaging features that will be driving long term
engagement and interactions with The Sandbox platform, allowing creators to work andcollaborate together in teams establishing more advanced collaborative workflows, aswell as features enabling any creator to run its own presale for games, organize its own
contest with prize pools, define rules of each DAOs with its sub-community and more;●Game Maker/Player: We will be releasing the Game Player on multiple platforms, startingwith mobile (iOS and Android) in 2021 and expanding to console thereafter. We will
improve the meta-gameplay to create come back design and providing incentives forplayers to explore and participate in the economic loop (Create, Trade, Play), fostering thePlay-to-Earn (Monetize your skill and time by collecting resources, rewards, and tokens)
as pillars of the economy. Players will have individual goals and objectives for the metagameplay but we will also include collective objectives to create communities andcompetition. The Sandbox LANDS can work as common hubs for players, provide different
experiences, advertise & shops, chat rooms, and other featured experiences;●

Blockchain and Tokens: We will be opening even more our blockchain technology to other
Developers (marketplace, smart contracts, etc.) so they can build additional services,
dApps
on
top
of
our
API
and
smart
contracts.

A more detailed roadmap can be found below:
2021
●
●
●
●
●
●
●
●
●

Partnerships – New IPs and Premium NFTs to be announced
Foundation – Launch of the Foundation DAO with SAND staking for voting on Creators Fundmanagement
Game Maker – Official Release 1.0 and major updates with more gaming packages, Behaviors
and Visual Scripting
Game – Official Release 1.0 and major updates
LAND Public sale – Regular LAND sales will continue
Events – Additional Seasons with big rewards to earn
Multi-platforms – Availability of Game on smartphones and tablets devices
Multiplayer – First user-generated games with multiplayer modes
SAND – Staking mechanisms for Yield generation and curation

2022●

Partnerships – New IPs and Premium NFTs to be announced

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●
●
●
●
●

Games Platform – Over 1,000 Games available
Multi-platforms – Availability of Game on consoles
LAND Public sale – Regular LAND sales will continue
Game Maker – Co-Building Mode - creating games with Friends, Custom Scripting with
programming 3rd layer and major updates with more gaming packages and Behaviors
Events – Additional Seasons with big rewards to earn

2023
●
●
●
●
●

Games Platform – Over 5,000 Games available
Partnerships – New IPs and Premium NFTs to be announced
Game Maker – Major updates with more gaming packages and behaviors added
Events – Additional Seasons with big rewards to earn
DAO – The Sandbox DAO will allow to participate in major decisions on the Game Platform

5.3.
●

Major Features in the Press

Our CEO, Arthur Madrid, published a Medium article titled Blockchain Metaverse: Where
Players Can Build, Own, and Control a Platonic Republic of Gaming, which has beenclapped over 500 times.
https://medium.com/sandbox-game/blockchain-metaverse-where-players-can-build-own-andcontrol-a-platonic-republic-of-gaming-65e23f059e37●

Our COO, Sebastien Borget, was quoted repeatedly on CoinTelegraph among 50 Crypto
Experts on his perspectives for 2020 and looked back on 2019 articles.
https://cointelegraph.com/explained/experts-share-what-are-the-biggest-crypto-andblockchain-topics-to-follow-in-2020●

The Sandbox ranked 13th among the Top 50 Blockchain Games Companies of 2020 reportby DappRadar, while Animoca Brands is ranking 5th. This confirms our leadership positionin the space.

●

The Sandbox raises $2 million more to build out blockchain-based game world from B
Cryptos,
True
GlobalVentures,
Square
Enix
and
more.
https://venturebeat.com/2020/03/19/the-sandbox-raises-2-million-more-to-build-outblockchain-based-game-world/

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The Sandbox Virtual World sold out third Virtual Lands Presale generating 3,330 ETH/440,000
USD.
https://www.gamasutra.com/view/pressreleases/360442/The_Sandbox_Virtual_World_sold_ou
t_third_Virtual_Lands_Presale_after_6_Hours_generating_3330_ETH440000_USD_in_Atari_The
me_Park_Neighborhood.php

6.
6.1.

Platform

Gameplay Experience

The gaming experience on the new The Sandbox platform will be launched through several intermediaryphases, with increasingly more complex features in each. When the alpha version is launched, players will
be able to make transactions and store their digital voxel ASSETS while also playing and interacting withother voxel asset creators and players in different user generated worlds. The gaming experience will make
The Sandbox a strong blockchain-based alternative to existing platforms such as Minecraft and Roblox.

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Even for players who do not create discrete items to sell on the UGC store, the combination of creativity
and security can pay off for players who create LANDS with compelling attractions. This is because a LAND
might have different revenue streams implemented on it, like microtransactions. Additionally, players canplay-to-earn by collecting rewards through gameplay.
We expect a wide variety of audiences to enjoy gaming experiences in The Sandbox marketplace. We haveidentified some of the types of games creators will be able to craft for them:●Social Experiences: The ASSET marketplace will allow creators to fully decorate theirspaces with beautiful sceneries and structures such as a fairy wonderland, a medieval
town, or even a futuristic space station.
These types of experiences can attract communities of in-game friends that hang out for
activities that combine social and gameplay elements.

●

Build & Craft: Our voxel map is ideal for creators to make Building & Crafting experiences.
Creators will be able to facilitate players with interesting experiences like building
competitions, creating their own play spaces.
All these tools and mechanics will be able to interact with the terrain to modify it, build
over it or even completely destroy it.

●

Exploration & Adventure: Solve the mystery of the cursed swamp, slay the mercenary
king of the endless desert, help the rebellion of the exiled prince of the elder LANDS oreven discover all the hidden secrets of the ancient temple!
Creators will be able to bring narrative, exploration and adventure gameplay to their
LAND. Each new LAND will be different, offering new potential to discover new LANDS,
meet new people and discover never before seen secrets!

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6.2.

Map - LANDS

The persistent map determines a player’s specific LAND coordinate. In most blockchain games where
player domains are sold like real estate, the specific location of a domain is of paramount importance as it
will determine who and what you are next to. Similarly, in The Sandbox there is a finite amount of LANDS,
and their location is determined initially in the map, and cannot be moved from one coordinate of theworld map to the other.
There are several advantages to this structure:●●

Players have the agency to combine LANDS to create a bigger gaming space with and near
their friends; andFriends can cooperate in the creation of these larger experiences by building experiences
together within the combined LAND and thus sharing the rewards (whether financial or
purely social or artistic).

There is also an economic incentive for players to work together via a combined LAND. For instance, if
several players band together they can create a ‘theme park’ experience, with each member focusing on
a key attraction, or members can focus on distinct neighborhoods that together create a ‘city’ experience.
In each case, the team effort allows players to cooperatively create a stronger incentive for players to visit
and enjoy their creations—and more visits results in more revenue to be shared.
It’s true that a single player with one LAND can keep all the revenue from that LAND, but a larger, morediverse collection of LANDS combined can boost financial rewards to be shared by charging, for example,
for a SUPER PASS that allows a player to visit all the gaming experiences in a combined LAND, with therevenue from the SUPER PASS shared between all the owners of said LAND.
There will be limits on joining LANDS together to keep certain conglomerations from having too muchcontrol and power against solo players.
Recent information has been released on The Sandbox Transportation System.

6.3.

ASSETS Marketplace

The marketplace will use smart contracts to control item auctions and transactions. This open marketplace
for creators and developers will allow for the free trade of in-game assets between the platform users.
Additional benefits of this marketplace are that economic principles of supply and demand become
automatically integrated into the system, allowing the community to determine the fair price of usergenerated ASSETS. The true strength of this marketplace, however, is that creators of such ASSETS canfinally generate true tangible real-world value from the voxel content they create.

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The ASSET tokens in our marketplace will require several pieces of information in order to properly bedisplayed as a sellable good. These pieces of info are:●Name & Genre: In order to better identify the ASSET being sold, and to help potential
buyers in finding it in the marketplace, the ASSET will require a name and a genre;●

Description: The description will help creators add specifications like size, model,
potential uses or even attach a short piece of fictional lore to the ASSET;●

Thumbnail: The marketplace will show what the ASSET itself looks like via several
thumbnails of the ASSET. We will include a feature in our voxel editor that willautomatically generate these thumbnails for the creators;●

Price: The creator will have total control over the price the ASSET will have on themarketplace. This price will be set in SAND.

●

Value: Creators will define Rarity, Scarcity and Attributes thanks to the Gems & Catalytsts
system.

Once all these requirements are met, the ASSET will be successfully displayed on the marketplace and beavailable for purchase.

6.4.

VoxEditwww.sandbox.game

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Under the philosophy of “CREATE, ANIMATE, PLAY” VoxEdit is the voxel modeling software that allows theartist to rig models and animate them using a user-friendly keyframe interpolation timeline.
●

Modeling: Having other software that also lets you model your own voxel art – whatmakes the modeling in VoxEdit different is that it is aimed at artists. That commodity isthanks to a user-friendly interface, powerful tools to let the artists model anything theywant, but also stay connected with them all the time to hear their feedback, what would
be nice to have, and especially what would make their life using VoxEdit much easier.

●Animation: Here is where VoxEdit stands out. VoxEdit uses a skeletal system withhierarchies, like the ones used in professional 3D software like Maya, 3D Max, Cinema 4D,
etc, allowing the Artist to rig anything they want and be ready for animation. It is the only
voxel modeling software that allows to model AND animate your ASSETS.
Once the skeleton is made, the artist can create any type of animation moving thedifferent parts of their model with an easy-to-use timeline. The timeline works like a video
editing software timeline, using layers to represent what part of the model you are moving
and creating key-frames to set the position, rotation and scale. The magic happens thanks
to the interpolation of these key-frames that the timeline does in the background.

●

Exporting:
VoxEdit allows the artist to export their creation in .VXM and .VXR, formats that ourMarketplace and games use to create a super smooth communication between the threeparts. Besides that, it also lets export in the standard formats such as .OBJ and also .DAE
and .GLTF for the models with animations on it.

7.

EconomyWe are excited by the opportunity to build new kinds of business models with this player-powered
economy, both in terms of revenue model and token model.
SAND will provide immediate liquidity to players and investors. The valuation of the SAND token is
calculated on what players will be able to build/play/trade/win inside our metaverse. We are aiming at
replicating real-world economy systems, with players able to buy, rent, hire, vote, stake, etc.
The main flows of income will be the following:●

Company ASSETs token: Sales of ASSETS created and developed by the company (LANDS,ASSETS, Attributes, others);●

Transaction Fees: TSB to charges 5% of all transaction volume carried out in SAND tokens(Transaction Fees) to be allocated 50% to the Staking Pool as rewards for token holders
that Stake SAND tokens and 50% to the ''Foundation.''●Player Subscription Fees: Revenues that we will generate via various subscription models
to gain access to exclusive in-game features, Premium ASSETS etc.

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7.1.

Tokenomics

SAND is the utility token used throughout The Sandbox ecosystem as the basis of transactions andinteractions. It is an ERC-20 utility token built on the Ethereum blockchain. It will be used across theecosystem by gamers, developers, and publishers, allowing Creators and Players to exchange ASSETS andGames and build a user-based platform of rewards while developing an ecosystem where Creators andPlayers will share various truly unique gaming experiences.
User generated digital ASSETS are represented as ERC-1155 tokens. To ensure the everlasting scarcity andverifiable scarcity of non-fungible items, we use the ERC-1155 token standard. This standard allows a smart
contract to track token-ownership at the individual token level: each item has a unique identifier and,optionally, unique properties stored as metadata.

SAND can be used and acquired by Artists, Creators, Players and LAND Owners through multiple
ways as described below:

ARTISTSCREATORS

PLAYERSLAND
OWNERSINVESTORS

What each profile will USE SAND tokens for?
Mint ASSETS

Year 1

Buy Gems &Catalysts

Acquire ASSETS

Buy LANDS

Publish Games

Combine LANDS
in Estates

Buy LANDS

Rent LANDS

Years 2-5
Create Prize Pools

Acquire SAND on
Exchanges

Play Games
Buy ASSETS, Avatar
Skins & Equipments

Buy Portals

Stake SAND

What each profile will GET SAND tokens with?

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Event Rewards
Sell ASSETS

Event Rewards

Stake SAND

Stake SAND

Year 1

Sell Gems &Catalysts
Stake SAND in his
LAND

Years 2-5●

Work For Hire

Rent LANDS
Sell LANDS

Stake SAND

Stake SAND in his
LAND

Monetize GamesWork For Hire

Players:
Playing: Players will be able to earn SAND tokens while playing the different games
uploaded to The Sandbox ecosystem. They might win SAND by slaying a legendary
monster, opening a chest, or even completing a quest; nearly endless possibilities can becreated in games;
Skill-Based Challenge: Players will be able to pay an entry fee to enter a challenge such asa race, a card game, a battle royale, or any other type of competitive contest. The winnertakes all of the prize pool. The experience creator might take a % of the total pool for
creating and hosting the experience; andTips System: A player who also happens to be a streamer, might be tipped with small
amounts of SAND based on his performance either for entertaining his audience or bybeing good at whichever game he or she is playing.

●

Creators:
ASSET Sales Revenue: Creators will be able to sell their assets in the marketplace,receiving 100% of the SAND price of the ASSET;
In-Game Purchases: Experience creators will be able to set up many different
monetization systems that will let them charge players SAND for exclusive content. Thesemonetization techniques range from item purchases to stat boosters, subscriptions, oreven entry fees to the game itself;
Creators Fund: At the first stages of the ecosystem, we will have a rewards program toincentivize creators to fill the marketplace with amazing voxel creations and in return be
rewarded with a generous sum of SAND tokens;
Art Challenges: We intend to keep a community-centered focus towards the marketplace,and with that in mind we decided that we will hold art challenges in which creators will
be able to upload one of their ASSETS for the possibility to win a prize pool of SAND tokens
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Crowdfunded Requests: We shall enable a section of the marketplace that allows
individuals and groups of users to request a certain type of ASSET in exchange for apayment of SAND, contributed by all the requesters.

The flow of SAND within the ecosystem could be represented as follows:

What The Sandbox does and How

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7.2.

Project Financing and Initial Revenue

During the period May 2019 to November 2019, the Company completed a successful private placement
round with 13 Investors for an aggregate amount of USD 3,410,000. The private placement round wasdone through equity and token sale agreements:

The token distribution and the SAND acquired by each investor during the private place took place in 2019and resulted in the total sale of 515,277,777 SAND which is equivalent to 17.18% of the token allocation
through token sale.

SAND allocated to investors through the Private Sale, Founders, Tem and Advisors are 100% locked with
5 years vesting and 12-month cliff.
TSB has also generated its first LAND presales successfully during December 2019 and July 2020. All LAND
assigned for sale have been sold for over 6,000 ETH.

7.3.

Initial Exchange Offeringwww.sandbox.game

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TSB is aiming to raise around USD 3,000,000 during the public sale, through the allocation of 12% of thetotal supply of SAND. There shall not be a soft cap and therefore there will be no refunds made of funds
contributed towards the project and allocated as detailed below:
Grow the development team and infrastructure for the game platform
Marketing – Creators acquisition and IP licences for NFT developments
Security, Legal and Compliance Expenses
General and Administrative Expenses

45%
45%
7%
3%

Investors for SAND include, but are not limited to:
●
●
●
●
●

7.4.

Traditional Venture Capital;
Cryptocurrency Investors;
Gaming Companies;
Gamers;Game Developers

Other Dynamics

As the community increases in terms of the number of creators, players and ASSETS in the marketplace,there will be an increase in the need for a utility token to reward the growing number of stakeholders
participating in the platform.
●

Growth Model and KPIs
The key success factors for building the ecosystem consist of ensuring an organic
community growth of Creators and Players invested in the value proposition offered by
The Sandbox while ensuring customer satisfaction. In order to ensure a progressive
growth of the community and its model, we have identified key variables that will bemeasured and incentivized through marketing, promotional, and communication tactics
to ensure the growth of the ecosystem:
o
o
o
o
o
o
o
o
o
o
o
o
o
o

www.sandbox.game

Creators growth rate;
Players growth rate;
New Assets created and uploaded per Creator;
New Assets created and uploaded by TSB;
Assets sold per month created by Creators;
Assets sold per month created by TSB;
Inflation rate of Assets in the marketplace;
Average price per Asset developed by Creators (in SAND);
Average price per Asset developed by TSB (in SAND);
Asset price growth;
Initial supply of SAND;
Initial supply of SAND in the hands of Creators and Players;
Price of SAND (in USD or ETH);% Commission at the marketplace.

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Therefore, while the total supply of SAND is fixed, the initial amount of SAND offered to theecosystem through creators and players will be limited to add a scarcity effect due to thefollowing key factors:oo8.

A growing number of Creators and Players which eventually will
reduce the SAND available per capita; andStaking effect, increasing the time holding SAND.

Technology

Blockchain technology is used to record ownership of tokens and allow owners to transfer/sell/use themwithout restriction. IPFS is used to store the actual digital asset and ensure the asset cannot be changed
without owner permission.

Three different blockchain protocols will be integrated into The Sandbox gaming stack:●●ERC-20 for SAND; andERC-1155 and ERC-721 for the Digital Assets storage and trading.

8.1. Future Technology Integrations
Why are we using Ethereum? We found many benefits to do so as detailed below:●

Ease of use: Ethereum has been built with flexibility in mind, which perfectly fits our use
case with Asset tokens. Ethereum also has the largest number of developers, which allows
for well-established standards, best practices and support;●

Robustness: It is, as of today, among the most robust blockchain protocols: its wide
adoption makes the network validated by many and thus more secure; and●Interoperability: Ethereum is a protocol, a base layer on top of which all applications canbuild and interact with each other.

The main issue faced by Ethereum today is often said to be its scaling issue. Blockchains are based on threepillars: Security, Decentralization and Scalability (throughput). Historically, Ethereum always put security
and decentralization first, at the cost of scalability and some technological improvements need to be madeat the base layer to support traffic at scale. On most public blockchains like Ethereum, this is one of themain current concerns, and lots of efforts are in progress to solve those scaling issues, without sacrificing
the blockchain trilemma.
Ethereum is a blockchain that has been proven by thousands of dApps and developers for its robustness
and offering a large ecosystem, resources and support from developers. With the current system we arebuilding, escrow less auctions, meta transaction, subscriptions (&cie) we can offer a great experience on
Ethereum for non-crypto users

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The Sandbox team is looking at layer-2 solutions (that use the main ethereum chain as an anchor for
security) – at the moment they are not yet ready for implementation or have not reached a production
stage so that we could reliably integrate them. We will closely follow technical progresses on this topic
and decide to integrate the solution that combines the best advantages for our product, use-case andusers.

8.2. Multiple Class Fungible Token (MCFT)
At The Sandbox, we spend a lot of time looking at how to preserve security and integrity for ASSETS on theblockchain while still allowing the speed and flexibility that players and creators demand. As with many
aspects of game design, you can’t get everything you want easily, so it’s a matter of balancing elements toimplement the best solution
The ERC-1155 standard that we co-created with other game companies in the blockchain space, wasdesigned to support the management of millions of tokens. On top of that our ASSET contract is also ERC721 compliant and allows multiple unique items to be created by a single smart contract with the benefitof keeping the ERC-721 interface to allow interoperability with other Marketplaces and games
In The Sandbox, users will have full control over their ASSETS, by being able to create them, but also having
the possibility to buy, sell, and trade those same ASSETS in The Sandbox Marketplace using our SAND token
currency.

8.2.1.

Interoperability

As we use Ethereum as the substrate of our ERC-1155/ERC721 implementation, any platform /wallet that supports ERC-1155/ERC-721 will be able to inspect and use our ASSET. This means
independent developers could rely on the plethora of ASSETS our players will be creating.
The Sandbox gaming environment will be divided into 5 types of tokens:● SAND (our game currency used across the system)● LANDS (Worlds in which players play that are created by the community)● ASSETS (Voxel models created by players and traded in the marketplace)● GEMS burnt to give attributes to ASSETS. They are ERC20 tokens● CATALYSTS burnt to mint ASSETS. Depending on their power, they allow users to associate acertain number of GEMS to an ASSET. They are ERC20 tokens

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Figure: The Sandbox Tokens
Token contracts are responsible for:●●●●Keeping track of creator (the address that minted the token)
ownershiptransfers
Emitting events when the state changes

8.2.2.

Meta Transactions

The Sandbox is aiming to bring non-crypto users to the blockchain world. In order to achieve that we
believe that the system should be transparent to the user as much as possible.
Meta Transactions allow users that own SAND to interact with our platform without the need to own orknow what ETH is or for that matter any of the tokens that will be used.

8.3. Technology Solution Breakdown
The Sandbox platform architecture is composed of several components. In terms of blockchain
integration, we have a traditionally backend running on the cloud (currently using AWS) to support
our web frontend. An S3 bucket is used to store the asset of the artist before they get minted.
While we currently guarantee the privacy of the artist work (to protect their work from being
copied prior to minting), we envision later a system that would prevent even us to peek at theartist work pre-minting.

Once an UGC asset is minted, our backend releases the ASSET on IPFS so that it becomes public.
Our smart contract records the hash of an ASSET so that the owner of the ASSET will always beable to prove ownership of not only the number recorded on the blockchain (which many projects
in the blockchain gaming space stop there) but also the voxel model itself as well as the various
render.

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Here is an overview of the overall architecture with all components represented.

●
●
●
●
●
●

●

Creators can create their ASSETS with VoxEdit, and upload those ASSETS through the browser
Metamask is a web3 provider which acts as an intermediary between the User and theblockchain
A browser in which the user will interact with the smart contracts and our server
The smart contracts running on the blockchain
Our server currently hosted on AWS
The backend is being developed with Node.js, which manages the creation of an asset on S3,generating a Hash ID for that ASSET, which is sent back to the frontend so it can begin thetransaction with the smart contract.
Finally, once the transaction is confirmed we released the asset on the ipds network. ensuringthat future owner will always be able to prove that what graphical representation they hold isindeed the original one.

IPFS17 (The InterPlanetary File System) is a peer-to-peer distributed ﬁle system that seeks toconnect all computing devices with the same system of ﬁles.

8.4. Program Agents

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The Sandbox platform architecture includes a server on our AWS infrastructure that is monitoring theblockchain and registering change of state.
Changes are then propagated by our API into our backend, and our centralized database is updating its
records, so that the frontend can pull the recent changes and display them accordingly to the players andusers of The Sandbox platforms.
These changes of states include transfer of ownerships from the tokens (LANDS, ASSETS, or SAND).
Additionally, the following are the various situations that will trigger external data inputs to our smart
contracts. The data received in inputs is always sanitized and several security layers are implemented tomake sure these are protected. Our smart contracts have been duly audited.

●
●

●

●

●

LAND Sale Setup: we submit the LAND configuration to each new sale contract at the timeof deployment.
LAND Sale: the buyer submits their LAND of choice inclusive of the payment, following
which the contract mints the LAND in exchange. We provide a 2D map to allow the buyer
to easily choose their LAND;
LAND Sale Stable Price Oracle: We do not have any oracle system that sends information
to our smart contract. Instead we utilise MakerDAO medianizer which receives updates
from the Oracle and makes a median estimation of the price of thedollar: https://developer.makerdao.com/feeds/
Asset Sale setup:o the creator submits a 3D voxel model to our backend, we hash the result andsubmit that on the smart contract, that in turn mints a token to represent it;o the creator submits a signature specifying the selling price and our backend shallstore it;
Asset Sale: the buyer submits a payment for a particular token to the smart contract alongwith the seller signature. It receives the token in exchange.

8.5. Game Engine
We have developed a custom Voxel Engine on top of Unity engine.
Our engine leverages the power of the new Unity Data Oriented Tech Stack (a.k.a. DOTS) bymaking extensive use of the Entity Component System (ECS) and the Jobs system.
By using Unity's new Universal Render Pipeline (URP) we are able to support Mobile platforms in
the future, without sacrificing the render quality of our game for Desktop platforms.

Our engine also implements support for our custom Voxel Models, Rigging and Animation formats(VXM, VXR, VXA) from our in-house Voxel Editor (VoxEdit).

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8.6. Wallets
We minimize the security risk on our backend by reducing the responsibility of hot wallets that are onlyused for referral and whitelisting.
The other wallets are cold storage wallets that hold responsibility for updating the platform with newcontracts and new parameters. These could later be part of a governance mechanism.
For
these
cold
wallets,
we
use
a
2
out
of
3
multi-signature
wallet(https://github.com/gnosis/MultiSigWallet) and all of the owners of those multi-signatures are threehardware wallets.
This wallet has the possibility to upgrade our SAND token, as well as the ability to extend functionality via
super operators.
In relation to the methods of payment, if the user wishes to pay with:●●

an ERC-20 based token (ETH or DAI), it will then be processed by a smart contract on-chain andthe user shall receive the SAND directly into his wallet; and/or
BTC, credit card or fiat payment, it will then be processed by a third party service merchantsolution, whereby upon confirmation by the latter, the SAND shall be released.

8.7. Security
The Sandbox marketplace is relying on the security of Ethereum for the functioning of its smart contracts.
The only wallet that can affect the logic of our smart contract is our multi-signature wallet which uses thegnosis MultiSig wallet backed with three hardware wallets.
On our backend side, we manage a database that cache the smart contract events to keep track ofownership. Our backend also stores temporary assets. On that side, its responsibility is thus minimal.
As for fiat payment hot wallet, we are designing a daily auto-refill to ensure that only a minimum amountof token is present, minimizing the consequence of a breach.

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9. The TeamWe have assembled the right senior team to execute our vision: 42 resources located in our 3 offices with
28 full time employees in Argentina, 11 in France, 2 in Korean and 1 in Japan.

9.1.

Core Team

Arthur Madrid - CEO and Director of The Sandbox
Arthur Madrid is the Co-founder and CEO of Pixowl (acquired by Animoca Brands in 2018) as
well as The Sandbox (40M players). Board Member of Animoca Brands and a longtime socialgaming entrepreneur. He sold two software companies (Wixi Inc. and 1-Click Media) and isan advisor for startups in gaming, social media and software. Arthur began his career buildinga P2P delivery platform for Media companies, one of the first Distributed Computing
Software (DCIA) platforms. Now, he is focusing on Blockchain Gaming as CEO & Co-Founderof The Sandbox.
Sebastien Borget – COO and Director of The Sandbox
Sébastien Borget is the Co-founder and COO of Pixowl (acquired by Animoca Brands in 2018)as well as The Sandbox (40M players). Passionate for blockchain technology, gaming andeducation, he is a very active speaker and evangelist on the opportunity Non-Fungible Tokens
brings to gaming. He is now building the metaverse with The Sandbox, one of the 2019’s mostanticipated and top ranked blockchain games (#13 in the Top 50), that is empowering players
through NFTs, enabling them to own, buy, sell and trade their 3D creations on theirMarketplace and use them in their Game Maker. Sebastien also became President of theBlockchain Game Alliance in 2020.
Marcelo Santurio - CFO of The Sandbox
Marcelo Santurio is the Co-founder of the 1st online payment company in Latam and has +20 years
experience in Finance, Tech, and Gaming. MBA from the London Business School with focus on
Finance and Execute Program at MIT in Entrepreneurship.
Pablo Iglesias - Inventor of The Sandbox Game
Pablo Iglesias has over ten years of experience in researching and developing emergent
procedural systems while leading teams of professionals through several successful games.
Lucas Shrewsbury - CTO of The Sandbox, ex-CTO of Gameloft
Lucas Shrewbusyr has spent more than a decade leading mobile gaming studios. While atGameloft Argentina, he managed the studio and a team of 200 people.

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9.2.

Advisors

HashedBased in South Korea and San Francisco, Hashed has realized
meaningful gains in the crypto-industry. Led by serial entrepreneurs andengineers, Hashed has expedited global Blockchain adoption throughstrategic investment and community building.

Mikhael Naayem

Mik Naayem is Chief Business Officer at Axiom Zen and CryptoKitties,
the world’s most successful game built on blockchain technology andAxiom Zen’s first public blockchain project. Mik focuses on directing
business strategy, growing partnerships, and evolving the company
platform.

Yat Siu

Co-founder and CEO at Animoca Brands. He is a serial entrepreneur andangel investor. He is the CEO and founder of Outblaze (sold B2B
business to IBM in 2009) and he has received recognition for his role asan entrepreneur focused on Internet and technology companies.

Alexis Bonte

Group COO of Stillfront Group, Co-founder and board member ofeRepublik Labs. He is a co-founder and angel investor with a strong
general management background and ovber 20 years 360 degrees
experience in all types of start ups from early stage to post-IPO.

Ed Fries

Ed Fries created his first video games for the Atari 800 in the early 1980s.
He joined Microsoft in 1986, and spent the next ten years as one of theearly developers of Excel and Word. He left the Office team to pursue
his passion for interactive entertainment and created Microsoft Game
Studios. Over the next eight years he grew the team from 50 people toover 1200, published more than 100 games including more than a dozen
million+ sellers, co-founded the Xbox project, and made Microsoft oneof the leaders in the video game business.

9.3.

Services Providers

Legal, Accounts & Tax

Centrium Advisory

System Auditor(s)Fact Group
CertiK
Solidified

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CONCLUSIONThe Sandbox decentralized platform allows players and creators to own a piece of our gaming metaverse(LAND), participate in the governance and economy (SAND), while creating and enjoying a simple way tobenefit from their playing time.

In the coming year, our experienced and dedicated team will build an unique way to play in a virtual world
where you can play, create, collect, earn, govern, and own anything in the game.

Join us now.

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