Metaverse Insights: The Rise of Sandbox as a Decentralized Metaverse Platform

The Metaverse is an emerging virtual universe that has attracted the attention of enthusiasts and investors alike. As this exciting field grows, users need to have a safe and accessible space to explore and experience the possibilities of this new realm. In response to this need, Sandbox has emerged as a decentralised platform that allows users to create, share, and engage with immersive metaverse content. With Sandbox, users can create various digital experiences, from virtual reality games to social interactions, all in a decentralised and secure environment. In this article, we will dive into the world of Sandbox and its contribution to the growth of the Metaverse. We will explore how the platform enables users to create and share unique Metaverse experiences, fostering a community of creators and enthusiasts. We will also explore the potential of the Metaverse and see how platforms like Sandbox are helping to shape the future of digital experiences. In addition to exploring the functionality and benefits of Sandbox, we will also take a closer look at the SAND token, the platform’s native cryptocurrency. We will examine its role within the Sandbox ecosystem and how it facilitates transactions, incentivises content creation, and supports the community’s growth. It highlights the platform’s unique features as a crypto-native Metaverse project and how it is establishing itself as a leader in this emerging industry. The article explores Sandbox’s ability to empower users to create, share, and experience immersive Metaverse content while fostering a community of creators and enthusiasts.

Author: Stephan Raubach

Introduction to Sandbox: A Decentralized Metaverse Platform

The Sandbox game started as a 2D pixel-art world creator in 2012 for mobiles and later expanded to Steam for PCs in 2015. In 2018, blockchain game development company Animoca Brands acquired The Sandbox and announced plans to bring it to the Ethereum blockchain. The new version is a voxel-style virtual land and game-experience-building platform that addresses key issues with traditional gaming by allowing true ownership of in-game assets and a free open market economy for creators and players without centralized interference. The Sandbox has a comprehensive economy suited for artists, investors, gamers, and game designers. The Marketplace, the VoxEdit, and the Game Maker are the three main pillars of The Sandbox.

The Marketplace is where artists and players can buy and sell assets, including virtual land known as LAND, and other in-game items. VoxEdit is a tool for creating voxel-based 3D models and ASSETs that can be uploaded to the Marketplace. Finally, Game Maker allows users to create their own games and experiences on the platform using the assets and LAND they have acquired.

Understanding the SAND Token and Its Role in the Sandbox Ecosystem

SAND is the primary currency of the Sandbox Metaverse and an ERC-20 utility token used for multiple purposes within the economy. It enables transactions on the Sandbox platform and allows for the purchase and sale of ASSETs, as well as the purchase of LAND in primary sales and all sales through the Sandbox marketplace. Artists must also spend SAND to upload their ASSETs to the marketplace. In addition, SAND serves as The Sandbox’s governance token, giving holders voting rights and the ability to participate in key decision-making processes regarding the future of the platform. Staking is also possible with the token, giving users passive income and the ability to farm gems and catalysts that are important for creating ASSETs. The Sandbox operates on a fee collection model, where the 5% fee collected by the marketplace is used to strengthen the Sandbox’s cash and foundation.

Aside from SAND, The Sandbox has four other tokens that are vital to its economy: LAND (ERC-721), ASSET (ERC-1155), GEM (ERC-20), and CATALYST (ERC-20). LAND is a unique, non-fungible token that represents a virtual piece of land within The Sandbox Metaverse. Players can use their LAND to create, share, and monetize their games and experiences. ASSETs, on the other hand, are fungible tokens that represent any item that can be found within the virtual world, such as avatars, tools, or buildings. GEM and CATALYST are both ERC-20 tokens that are essential in the ASSET creation process. GEMs are used to buy LAND and CATALYSTs are used to enhance the properties of ASSETs, such as increasing their rarity or boosting their abilities. Together, these four tokens form the backbone of The Sandbox economy and enable creators and players to participate in a vibrant and decentralized virtual world.

The classification of SAND according to the ITC:

Figure 1: The SAND Tokenbase entry (Source:

Economic Purpose (EEP): SAND is listed as a Settlement and Governance Token (EEP22TU03). The token is the protocol’s settlement token.

Industry Type (EIN): The issuer of SAND is active in the field of Entertainment, Sports and Gaming (EIN08ES).

Technological Setup (TTS): SAND is an Ethereum ERC-20 Standard Token (TTS42ET01). The Class “Ethereum ERC-20 Standard Token” captures every token that is implemented by means of the ERC-20 Standard on top of the Ethereum blockchain.

Legal Clam (LLC): The SAND token does not entitle its holder to any legal claim or rights against the issuing organization; therefore, it is listed as a No-Claim Token (LLC31).

Issuer Type (LIT): The dimension “Issuer Type” provides information on the nature of the issuer of the token. The Sandbox project is being developed by a private company therefore SAND is listed as Private Sector Legal Entity (LIT61PV)

Regulatory Framework (EU) (REU): The dimension “Regulatory Status EU” provides information on the potential classification of a token according to the European Commission’s proposal for a Regulation on Markets in Crypto Assets (MiCA, Regulation Proposal COM/2020/593 final). SAND token qualifies as a Utility Token (REU51UT) according to the definition provided in Article 3 (5) of Regulation Proposal COM/2020/593 final.

Figure 2: Example of a map in Sandbox Metaverse

The Digital Real Estate Boom in Sandbox: Risks, Price Rallies, and Future Trends

The buying and selling of digital land, or virtual real estate, has become a major phenomenon within the Metaverse industry, and Sandbox is no exception. Digital land refers to parcels of virtual space that can be owned, developed, and traded within Metaverse platforms like Sandbox. The use case for digital land in the Metaverse is multi-faceted, with potential applications ranging from gaming experiences to virtual storefronts and beyond. In Sandbox, digital land is used to create user-generated content and experiences, such as games, social spaces, and art installations.

As with physical real estate, the value of digital land in Sandbox is driven by factors such as location, size, and the potential for development. Digital land parcels in Sandbox have witnessed significant price rallies, with some selling for millions of dollars. However, as with any new and exciting investment opportunity, there are risks involved, including the potential for a speculative bubble. Despite these risks, traditional companies are showing an increased interest in investing in crypto Metaverse projects like Sandbox, recognizing the potential for growth and innovation in this emerging space.

Looking ahead, we can expect to see a continued rise in the demand for digital real estate within the Metaverse, driven by the growth of decentralized applications and gaming experiences. As the industry matures, new business models and revenue streams are expected to emerge, further fueling the development of digital real estate in Sandbox and other Metaverse platforms. However, regulatory challenges and the need for interoperability between platforms will also need to be addressed to ensure sustainable growth and adoption.

Competing in the Metaverse: Sandbox’s Position in a Crowded Field

As the popularity of virtual worlds and blockchain gaming continues to rise, The Sandbox faces competition in a crowded field. However, its unique focus on user-generated content and true ownership of assets sets it apart from other platforms. The Sandbox’s VoxEdit and Game Maker tools allow for easy and accessible content creation, while the Marketplace offers a decentralized and open platform for buying and selling assets. Additionally, The Sandbox’s use of blockchain technology ensures a secure and transparent economy. With partnerships with major brands and developers, The Sandbox has established itself as a key player in the Metaverse and is well-positioned to continue growing in the coming years.

The Sandbox faces competition from other blockchain-based virtual worlds and gaming platforms such as Decentraland and CryptoVoxels. However, unlike these platforms that rely on pre-designed content and limited customization options, The Sandbox offers a more robust suite of tools for user-generated content creation, making it a more versatile platform. Additionally, The Sandbox has secured partnerships with major brands and developers, such as Atari and Square Enix, helping to attract more users to the platform. While there is certainly competition in the Metaverse space, The Sandbox’s unique offerings and partnerships give it a strong position in the crowded field.

Roadmap: The Future of the Platform and Its Potential Impact on the Metaverse Industry

The company’s plans include

  • expanding the platform’s capabilities,
  • integrating with other blockchain projects, and
  • creating new partnerships with major brands.

The potential impact of these developments on the Metaverse industry is significant, as the Sandbox is quickly becoming one of the most popular platforms for creating and sharing virtual worlds. With its focus on user-generated content and blockchain technology, the Sandbox has the potential to revolutionize the way people interact in virtual environments and even create new economic opportunities. As the platform continues to grow and evolve, it will be interesting to see how it shapes the future of the Metaverse industry.

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to the market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.


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Stephan Raubach is a Research Associate at the Frankfurt School Blockchain Center FSBC). He is currently pursuing his Bachelor in Business Administration at the Frankfurt School of Finance. You can contact him via and connect with him on Linkedin, if you would like to further discuss FSBC or have any open questions.



International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.