Category Targeted
SAND Initiatives
TL;DR
Web3, with its open and interoperable nature, makes it easy to connect ecosystems built on blockchain. This enables metaverse-like experiences and creates network effects that benefit every stakeholder. In this environment, collaboration becomes much more valuable than competition. However, we are still held back by Web2 habits of competition, leaving much of this potential untapped.
To unlock it, we need to ignite cooperation and foster systematic cross-ecosystem collaborations. By participating in ApeCoin governance through the strategic acquisition of APE, the Sandbox DAO can take a leading role in this movement. This is what this proposal is about.
What:
This proposal introduces a scalable Cross-DAO Collaboration Framework initiated by The Sandbox DAO to foster partnerships and shared governance, starting with ApeCoin DAO as a pilot. The first step is to acquire 100,000 ApeCoins using up to 312,500 SAND to begin participating in ApeCoin DAO governance and fostering cross-community collaboration, driving mass adoption of a decentralised metaverse vision.
Why:
- Expand Sandbox Influence: Position The Sandbox DAO as a thought leader in innovation and amplify our voice and presence across the Web3 ecosystem.
- Enhance Collaboration: Foster cross-DAO initiatives, to deliver a more interconnected user experience that aligns with The Sandbox’s vision of building a global, open Metaverse.
- Grow Community and User Base: Attract users from targeted communities (starting with the ApeCoin community) to explore The Sandbox product and engage with its ecosystem.
How:
- Ape Token Acquisition: Acquire 100,000 APE tokens using the treasury
- Governance Participation: Establish a Snapshot subdomain for The Sandbox community to actively engage in ApeCoin DAO governance. Created a dedicated forum category (https://forum.sandboxdao.com/) to allow community members to express opinions and discuss AIPs effectively.
- Streamlined Cross-DAO Proposal Process: Following the outlined process in this proposal, community members are encouraged to propose co-branded initiatives with ApeCoin DAO. Shortly after this proposal is approved, we will submit the first cross-DAO proposal using this framework, aiming to create a co-funded incentive program to foster and reward co-branded initiatives.
When:
The acquisition of ApeCoin will be completed within one month of SIP approval, subject to market conditions. The governance setup and community engagement launch will be finalised within this timeframe.
Within one month of acquiring ApeCoins and initiating governance participation, the first cross-DAO proposal (focused on establishing a co-funded incentive program) will be submitted to The Sandbox DAO for approval. In the meantime, community members are encouraged to submit their own cross-DAO proposals as soon as the ApeCoins are acquired, using the process outlined in this proposal.
Who:
The authors Katherine Webb and Cedric Lion, members of Animoca Brands’ Tokenomics Team, will engage with the TSB DAO admin team regarding the management and exclusion of the SIP. The authors and TSB DAO admin team will ensure active community involvement and maintain clear accountability through quarterly progress reports.
Problem Description
The Power of Web3 and the Need for Cross-DAO Collaboration
One of the greatest strengths of Web3 lies in its ability to facilitate interconnected experiences across ecosystems. This can generate obvious benefits such as:
- Co-Funded and Co-Branded Initiatives: Greater financial resources, improved visibility, and higher chances of success through shared branding and pooled resources.
- Fostering Interoperability: Joint projects can build innovative, metaverse-like, cross-ecosystem experiences highlighting Web3’s unique value over Web2, driving mass adoption of decentralised technologies.
- Expanding Audiences: Partnering DAOs gain access to each other’s communities and audiences, creating a win-win acquisition strategy that grows both ecosystems.
- Strengthening Decentralized Governance: Interconnected governance encourages DAOs to consider and debate the broader impacts of their decisions, reducing unilateralism and fostering collaboration. This transforms the ecosystem from a “Player vs. Player” (PVP) model (where projects grow independently while treating others as competitors) to a “Player vs. Environment” (PVE) model, where the ecosystem collectively works to grow for the benefit of all stakeholders.
However, most DAOs still operate in silos, focusing exclusively on their individual goals and limiting the potential for cross-DAO initiatives. This fragmented approach overlooks the immense value that interconnected ecosystems can create.
Cross-DAO collaboration is particularly crucial for The Sandbox, which positions itself as a metaverse. To fully realise its vision, The Sandbox must actively foster joint experiences and connect its ecosystem to other ones.
The Challenges of Decentralized Governance
The nature of decentralised governance presents significant obstacles. Passing proposals within a single DAO is already a complex process. Aligning priorities, managing shared goals, and convincing two separate communities to approve interconnected proposals greatly amplifies this complexity. Additionally, the practical implementation of proposals, which is already challenging within a single DAO, becomes even more challenging with joint initiatives.
Introducing a Scalable DAO Collaboration Framework
The Sandbox DAO needs a replicable and scalable DAO Collaboration Framework to overcome these challenges. This framework should:
- Facilitate Efficient and Impactful Partnerships: Simplify the process of proposing and developing co-funded initiatives and cross-ecosystem experiences, ensuring smoother collaboration.
- Incentivize High-Quality Proposals: Align incentives to encourage initiatives that create maximum value for The Sandbox ecosystem and the broader Web3 space. This should incentivize more proposals, but also higher quality and impactful ones.
This proposal introduces the foundation for such a framework.
Solution Proposed
Cross-DAO Proposal Framework
The proposed framework establishes a systematic process for The Sandbox community to identify, discuss, and implement co-branded initiatives with other DAOs. Key steps include:
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Identifying Partner DAOs: The Sandbox community discusses and identifies DAOs with which they want to build partnerships. The Sandbox DAO acquires a reasonable quantity of the selected DAO’s tokens to participate in its governance.
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Governance Integration: The Sandbox creates a Snapshot subdomain dedicated to the chosen DAO. This subdomain replicates the DAO’s proposals, enabling The Sandbox community to discuss and vote on them. A dedicated forum will facilitate debates and discussions around the proposals. Based on the voting outcomes, an appointed delegate leverages The Sandbox’s voting power to vote on the other DAO’s proposals accordingly.
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Cross-DAO Proposal Process:
- Step 1: A community member creates a cross-DAO proposal and first submits it to The Sandbox Snapshot for discussion and voting to ensure it aligns with the community’s best interests.
- Step 2: If The SandboxDAO community approves, the proposal is duplicated and submitted to the partner DAO. The SandboxDAO casts its voting power in favour of the proposal based on the community’s decision.
- Step 3: The proposal is debated and voted on in the partner DAO’s forums and governance platforms. The prior approval by The Sandbox DAO and the associated debate support the proposal, increasing the likelihood of approval.
- Step 4: Once both DAOs approve, the cross-DAO proposal is implemented according to the conditions outlined in the proposal.
Pilot with ApeCoin DAO
To test and refine this framework, we propose initiating the process with ApeCoin DAO as a proof of concept. The following steps will be undertaken:
- ApeCoin Acquisition: Acquire 100,000 ApeCoins using SAND, ensuring sufficient governance participation and signalling a commitment to collaboration.
- Voting Power Delegation: The SandboxDAO will act as the delegator for the Sandbox community within ApeCoin DAO and will cast votes based on decisions made by The Sandbox community.
- Governance Channel Setup: Establish a Snapshot subdomain to replicate ApeCoin DAO proposals; create a dedicated forum sub-category to enable debates and community discussions.
- Governance Participation: Actively participate in ApeCoin DAO governance, with The Sandbox community debating and voting on proposals to ensure their voice is heard and their interests are represented.
- Cross-DAO Proposals: Following the earlier process, any community member can create a cross-DAO proposal by submitting it to The Sandbox for discussion and approval.
Therefore, this proposal establishes a theoretical framework for cross-DAO initiatives and begins its implementation with ApeCoin DAO as a proof of concept. Doing so paves the way for community members to propose numerous joint initiatives with ApeCoin DAO while also setting the stage for acquiring tokens from other DAOs to foster partnerships with targeted ecosystems.
Benefits to The Sandbox Ecosystem
Benefits of the Overall Framework
Stimulating Cross-DAO proposals…
This framework encourages The Sandbox community to actively debate and identify the DAOs they wish to partner with and the co-branded initiatives they want to implement. By fostering these discussions, we will stimulate creativity, generate fresh ideas, and lead to actionable proposals that align with the community’s vision.
… and facilitating the proposals’ acceptance…
The Sandbox’s active involvement, demonstrated by acquiring tokens from targeted DAOs and participating in their governance, adds credibility and weight to its proposals. This “skin in the game” approach signals a genuine commitment to collaboration, significantly increasing the likelihood of proposal acceptance.
… to unlock the advantages of Cross-DAO collaboration.
By stimulating and facilitating cross-DAO partnerships and joint initiatives, this framework unlocks numerous benefits, including:
- Co-Funded and Co-Branded Initiatives: Greater financial resources, improved visibility, and increased chances of success through shared branding and pooled assets.
- Enhanced User Experience: Joint projects enable innovative, metaverse-like, cross-ecosystem experiences highlighting Web3’s unique value over Web2, driving mass adoption.
- Expanding Audiences: Access to each partner DAO’s community and audience, creating a win-win acquisition strategy that grows both ecosystems.
Benefits of Pilot Collaboration with ApeCoin DAO:
As a pilot for the proposed framework, we selected ApeCoin DAO due to the numerous benefits it offers:
Engaging a Strong, Loyal Community
ApeCoin DAO boasts a robust and loyal community tied to the iconic Bored Ape Yacht Club (BAYC) and the recent successful launch of ApeChain. This partnership allows The Sandbox to connect with ApeCoin’s active user base and gain increased visibility by associating with one of the most recognisable brands in Web3.
Powerful Co-Branded Marketing Opportunities
The Sandbox DAO and ApeCoin DAO possess significant financial resources and strong branding. Co-branded initiatives between the two can generate substantial marketing impact, leveraging the combined strengths of both ecosystems. Aligning with ApeCoin DAO enhances The Sandbox’s credibility and opens the door to impactful co-marketing campaigns and joint projects.
Interoperability and Cross-Ecosystem Experiences
This collaboration paves the way for innovative cross-ecosystem experiences that leverage the strengths of both platforms:
- Sandbox Experiences with Apecoin Assets: Create immersive experiences in The Sandbox using Ape ecosystem assets and IP to attract and engage the ApeCoin community.
- ApeChain Experiences with Sandbox Assets: Integrate Sandbox assets into ApeChain to expand interoperability and utility.
These initiatives foster deeper user engagement by enabling in-game items and assets to gain functionality across platforms, enhancing the overall user experience and reinforcing the value of Web3 interoperability.
Risk analysis
Risk | Likelihood | Severity | Impact | Mitigation |
---|---|---|---|---|
Selling $SAND from Treasury | Low | Low | Reducing $SAND reserves for purchasing APE may be questioned. | Maintain transparency, limit the transaction size, and ensure the investment aligns with strategic goals to foster growth. |
Limited Governance Impact | Medium | Low | The acquired ApeCoins may not provide significant voting power or influence within ApeCoin DAO. | Focus on meaningful participation and aligning proposals with mutual goals rather than dominance in governance. |
Unclear ROI | Medium | Medium | Joint initiatives may have uncertain outcomes, making it challenging to quantify returns on investment. | Define clear KPIs upfront, review progress quarterly, and adjust strategies based on measurable outcomes and community feedback. |
Community Pushback | Medium | Medium | Concerns over resource allocation and token purchases may arise within The Sandbox community. | Maintain transparency, involve the community in governance votes, and communicate the long-term benefits of the initiative. |
Reputational risk among Apecoin DAO | Low | Medium | The unilateral token purchase may be perceived as an attempt to dominate ApeCoin DAO governance. | Clearly position the purchase as a collaborative step, emphasising mutual benefits and respecting ApeCoin DAO’s independence. |
Treasury depreciation | Medium | High | If the relative value of APE decreases compared to SAND, the treasury may face devaluation. | Leverage favourable SAND-to-APE conversion rates, highlight diversification benefits, and monitor market conditions to adjust plans. |
Budget requested
Total Maximum Requested: Up to a maximum of 312,800 SAND (250,200 SAND estimated cost + 25% buffer for any additional expenses)
This budget ensures sufficient resources to execute the proposal effectively while maintaining flexibility and accountability.
Cost Breakdown:
- SAND Tokens for ApeCoin Acquisition:
- Current Estimate: 250,000 SAND.
- Maximum Cap: 312,500 SAND (to account for market volatility and ensure purchase flexibility)
- 2 x ENS Domain purchase:
- Cost Estimate: 2 x0.02 ETH (in USD equivalent).
- SAND Allocation: ~120 SAND per ENS domain
- Maximum cap: 300 SAND (to account for market volatility and ensure purchase flexibility)
Implementation Plan
Milestones | How do we measure success? | Expected completion date | Unlock Payment |
---|---|---|---|
#0 SIP Acceptance | SIP is approved through a Snapshot vote with a clear majority. | Up to 312,500 SAND for ApeCoin acquisition | |
#1 ApeCoin Acquisition Execution Plan: Convert up to 312,500 SAND to APE on CEX using a TWAP strategy over 3–5 days to minimise slippage based on DEX and CEX simulated swaps. | - Successful acquisition of 100,000 ApeCoins. - Transparent reporting of all transactions to the community. | Within one month of SIP approval | Up to 300 SAND to buy 2 ENS domains |
#2 Governance Infrastructure Setup - Create a Snapshot TSB DAO subdomain to replicate ApeCoin DAO proposals. - Buy ENS subdomain name | - Snapshot subdomain is operational | 2 weeks post-acquisition | No additional funds are required. |
#3 Active Governance Participation - Replicate AIP into TSB DAO Subdomain - Create a dedicated discussion in Discourse for each replicated AIP. - Discussion period of 11 days, with 1-2 days for DAO to vote. - Proposal to lower for ApeCoin-related initiatives due to trial nature: Use ~80% of the current quorum (25 million) to ensure 100% active participation in APE DAO governance. | - Participation in 100% of ApeCoin DAO proposals. - Active community involvement in discussions. | Ongoing post-infrastructure setup | No additional funds are required. |
KPI’s for Success
To evaluate the success of this initiative, the following Key Performance Indicators (KPIs) will be tracked:
Metric | Target | Timeline |
---|---|---|
Voting Participation | 80% of The SandboxDAO main quorum | Within 90 days |
Snapshot Subdomain Engagement | 100 new members | Within 90 days |
Cross-DAO Proposals | One joint initiative with ApeCoin DAO | Within 12 months |
Partnership Expansion | One additional DAO collaboration is to be initiated | Within 12 months |
Proposal Creativity | Two unique ideas developed into actionable proposals, using the cross-DAO proposal framework. | Annually |
APE Resource Utilisation | 100% of the allocated APE tokens are actively utilised in governance votes or other approved initiatives | Ongoing |
If KPIs are not met, then the authors and the SandboxDAO team will review the SIP and its success after 1 year to see if any amendments and refinements should be made.
Team/Author Background
Katherine Webb and Cedric Lion submitted the proposal, representing extensive expertise in tokenomics, decentralised governance, and blockchain ecosystems.
Katherine Webb is a Senior Tokenomics Analyst at Animoca Brands. Katherine brings over five years of experience in the crypto sector, with the past three years dedicated to tokenomics at Animoca, where she has contributed to the design, analysis, and optimisation of token ecosystems. She also serves as a council member for the Open Campus sub-DAO.
Cedric Lion holds a degree in Economics with a special interest in Game Theory and Microeconomics. Over the past 1.5 years, he has focused on Tokenomics and the economic design of Web3 projects, including the last six months at Animoca Brands.
Both authors bring complementary skills and a shared vision for advancing decentralised collaboration through The Sandbox DAO, ensuring this proposal is built on a foundation of expertise and practical experience.
This proposal is being submitted by the authors in their personal capacity and not behalf of Animoca Brands
Voting Options
State the options members can vote for:
- Yes, No, Abstain