SIP-28: Creator-Driven Phygital Merchandise Collection

[Geraldine]

TL;DR

What	Create a commerce platform to allow UGC creators turn their digital asset and NFTs/IP into real merchandise using Another-1 phygital technology. The platform will operate on a yearly subscription for users.
Why	To create revenue opportunities for creators in The Sandbox through scalable on-chain commerce, deliver innovative features to enhance the experience of creators, and to open up opportunities to reach new domains outside of Web3
How	$60,000 budget to fund a 10 week development project led by Another-1 split out over four milestones covering the creation of smart contracts, third party integration, front end UI and underpinning infrastructure.
When	10 week development plan, pending confirmation from development teams following initial investigation. Aiming to launch September 2025.
Who	Another-1 is a B2B enabler that offers companies in fashion, entertainment and gaming the possibility to create digital/physical products to elevate customer engagement and experience. They are aligned with Animoca. https://x.com/MarcoStagliano @Another-1

Council Recommandation

To be added

SIP Details

Problem Description

This proposal addresses two main aspects:
i) scarce opportunities for monetizing UGC creator IP with physical merchandising
ii) few intersections with communities and opportunities outside of traditional Web3

Solution Proposed

Another-1 will create a Phygital API that allows external collection to have the possibility to link the NFTs to a physical product integrated with the NFC hardware.

This will then allow UGC creators and Game Studios to launch a merchandise collection, which can include products including t-shirts, bags, hoodies, and sneakers, (details here) in minutes. Users can claim the physical product or purchase by paying in SAND, Matic/Poly, USDT or Credit Card (Visa, MasterCard, AmEx) on a dedicated storefront.

Another-1 takes care of the design, manufacturing and production, NFC coding, embedding and shipping of physical products while droplinked, a partner of Another-1, enables the product management, analytics, shop front displays, product tile embeddable units and checkout.

The Phygital solution will also enable UGC creators and Studios to improve the engagement of users in off-line events, using the “Flex2Earn” features available for the Another-1 NFC embedded items, a way to reward off-line engagement during conferences and events. A simple tap of the NFC by the assigned clerk triggers a blockchain transaction that rewards the wallet holding the paired NFT with SAND or NFT airdrop. The NFC chip also allows for ongoing interaction with the customer.

An example of the journey and potential opportunities can be viewed here.

The platform will operate on a yearly subscription basis per UGC creator and a submission fee per collection created. Another-1 will have a revenue sharing agreement with the DAO that will ensure that the DAO is able to recover its investment and continue to earn revenue.

Benefit to The Sandbox Ecosystem

Opportunities for creators - creators will be able to convert their digital creations into physical merchandise to produce a revenue stream as well as the opportunity to build brand awareness and target different audiences.

Income for the DAO - there will be a revenue sharing agreement with the DAO that should ensure that this becomes a zero-cost initiative for the DAO while also generating ongoing revenue. This will follow the standard DAO revenue sharing model of the DAO outlined below:

Terms	TSB DAO Recovery	Another-1 Recovery
Until initial investment is recovered	100%	0%
Until triple initial investment is recovered	50%	50%
After that	20%	80%

Potential new audience - adding broader commerce and creative opportunities in The Sandbox could help attract new users and increase engagement.

Ecosystem synergy - creates a direct alignment between The Sandbox and the physical world, opening up new opportunities and audiences.

Creator Income - The following example shows what a creator can expect to earn from a collection selling 50 units.

DAO Income - The example below shows how the DAO could recover its investment and continue to make money through the revenue sharing agreement.

Risk analysis

Risk	Impact	Mitigation Strategy
Intellectual Property	Allowing users to create merchandise based on NFTs creates a risk that NFTs are misused or IP rights infringed upon with legal ramifications.	Creators will be responsible for confirming that they have the appropriate rights and accept all risks of proceeding.
Logistics	Independent creators may not be accustomed to physical business models and supply chains, which could lead to complaints. Additionally, The Sandbox user base is global.	Another-1 are responsible for fulfillment, production & shipping, and will also be the customer service contact point. They have a list of countries their courier cannot ship to which will be shared.
Technology	Introducing new functionality into The Sandbox environment could result in creating new vulnerabilities and threat vectors.	The changes within The Sandbox are expected to be minimal, requiring only enabling smart contracts and links to the launchpad. Investigation will be completed as part of the first milestone.

Budget requested

Overall cost: $60,000 USD

Breakdown of the Cost

Activity	Cost
Development Resource	$50,000
Initial Research & Development	$5,000
Admin & Operational Costs	$5,000

Implementation Plan

Milestone	Activities	Deliverables	Expected Completion Date	Payment unlocked
The Sandbox Smart Contract Development and Integration Tools	Technical Development: Costs associated with the research and development of The Sandbox based smart contracts and NPM library. - Quality Assurance: Resources for testing, ensuring and auditing the reliability of the deployed smart contracts and integration tools. - Documentation and Training Materials: Creation of comprehensive guides and materials for developer usage.	Development of The Sandbox based smart contracts and an NPM library for integration on Project Github	Weeks 1 - 2	$10K
Third-party Commerce Services Integration for Storefront Commerce	Integration Development: Expenses for enhancing the NPM library for third-party service integrations. Partnership Management: Costs related to establishing and maintaining relationships with third-party service providers. Testing and Optimization: Funds for rigorous testing of integrations and optimizing performance.	Enhancement of the NPM library for third-party service integration within The Sandbox. KPIs: Number of third-party integrations completed, integration error rate. Progress Measurement: Monitoring integration successes and addressing any integration errors or issues.	Weeks 3 - 5	$20K
Decentralized Inventory and Sales Management with Affiliate Tracking	Front-end Development: Costs for developing the user interface for The Sandbox Commerce storefronts. Backend Infrastructure: Investment in backend systems for the DIMST system. Delivering a The Sandbox Merch Shop website using droplinkeds infrastructure and application layer for onchain commerce, inventory rule set logic and payments.	Development of a frontend framework for a storefront and a DIMST system for onchain product registration and affiliate tracking for primary goods, RWA assets and services.	Weeks 5 - 7	$15K
Phygital API	Backend Infrastructure: investment for integrating $SAND token as reward in the Flex2Earn module and allowing external collection to link NFT ID with NFC ID in Another-1 factory App.	Third-party collection integration in the Phygital module, inclusion of $SAND as rewards in the Flex2Earn module.	Weeks 7-10	$15K

Team/Author Background

Marco Stagliano CEO Another-1 – In recent years, Marco has developed businesses across Asia and Europe and acted as head of operations for AngelVest, a network of Angel Investors. In September 2021 he started an NFT project sold out in 1 hour and half, further developed in a gaming experience for the sandbox with in-game characters and a token gated experience for digital product.

As SIP Lead I will coordinate all the professionals involved in the project, strategically advising the integration between the launchpad and the ecosystem.

Krzysztof Cywenski - Tech Lead - Another-1 Krzysztof has 15+ years of experience in tech. Previously worked as the CTO and co-founder of Quantum CX, a visual expression recognition AI startup.

Ali Sammour - CEO of droplinked - who spent >6 years at AddThis and helped them scale to adoption and acquisition to Oracle, scaled FLATLAY to $25M GMV sales quarterly.

Morteza Nokhodian, ex Microsoft, John Deere and PixRay, building and scaling award winning innovations in the EU for infrastructure system.

Voting Options

• Yes, I think this idea has potential
• No, there is a good reason we shouldn’t do this
• Abstain

APPENDIX

Alternatives Considered

We considered the alternative to provide the launchpad functionality within Another-1 launchpad environment (https://launchpad.another-1.io/) to limit the investment and provide a more immediate solution. But this would entangle the use of Another-1 smart-contract that won’t allow to directly connect the existing asset to the NFC. We would have to use the “NFT scan” feature to link the physical wearable to an NFT. The reason why we decided to create an UGC creator launchpad is the preference to create an environment that is not totally dependent from Another-1 infrastructure and could operate in autonomy. The interface is built opensource.

[meowl]

I simply think the demand isn’t there yet. This risks both creator losses and poor DAO returns.
Maybe some creators could share if they’d want this, or I guess the vote will tell.

[Another-1]

We made the SIP proposal based on our experience working directly with gaming studios within and outside of the Sandbox Ecosystem. We believe that the demand is there and there is a potential of physical merch connected to NFT and gaming.

Merchandising is something that is already happening from creator side, we offer a tool to make it more accessible and connected to in-game asset for a unique experience.

[theKuntaMC]

Any thoughts form other @Delegates on this new SIP?!

Don’t forget: the first few days of any “discussion period” is the most useful for suggesting changes in language to an author.

An author can make changes to their proposals during this part of the SIP process if they feel it will help the SIP achieve the votes they’ll need.

[cryptodiplo]

I’m in agreement with Meowl unfortunately, I would like to revisit this when we have a lot of players but I don’t think it makes sense at this time. I was a big CloneX guy back in the day and it just didn’t seem like that was a successful use case, and I would rather prioritize making fun games before we start branching into other use cases.

[Biversen]

The idea is good, but I don’t know how successful it will be in practice. I think the same as @meowl and @cryptodiplo

I think UGCs and DAO don’t have enough players to make a profit from this. The number of experiences already shows this. it could be implemented in the future.

[hishmad]

This seems like a promising idea. To better understand its immediate priority and overall utility for all stakeholders, could you perhaps provide any statistical data or references to similar projects that have been implemented elsewhere? While the explanation has been clear, such information would be very helpful in assessing its potential impact.

[sebga]

There are aspects of this idea that I like, but a derivative object outsourcing platform doesn’t really make sense. It should be an option available on UGC platforms, not a new platform.
(Also, there should be the ability to showcase one’s own creations. Some people make things by hand too :)) )
I’m not very keen on this idea. It seems like an unnecessary expense.
Individually, we can already do what’s being proposed.

@Geraldine Another-1 is for luxury product no ? This doesn’t fit at all with the idea of ​​mass-produced derivative products.
For my part, I make one-of-a-kind luxury leather goods; it would break my heart to be lost amidst mass-printed mugs and t-shirts.

[KCL]

Hey @Another-1 ,

Thanks for sublmitting your SIP and posting for discussion. For those who wants to go through the already previous discussion you can go there where some questions are adressed. SIP – UGC Commerce Launchpad for TSB Phygital Merch

With regards to the shop itself do you think that it can be integrated into the UGC platform that @WakeUpLabs @Gonzacolo are building? It will avoid the creators/gamer to navigate through different pages.

[Another-1]

Dear @sebga thanks for the feedback and we’re excited to know that you have your own luxury on-of-a-kind product, would like to see some sample if possible.

Let me dive a bit deeper into the SIP, the manufacturing of product is only one part of the platform offering:

1. Creating a connection between the in-game asset and a physical product using our NFC-NFT bonding feature, this goes as well for proof of authenticity that can be a good fit for on-of-a-kind product;
2. In case the creators have already manufacturing capabilities, we could work together for phygitalizing the product and help the placement;
3. Another-1 is not exclusively luxury or merchandising. We have capabilities to create different range of products depending on the purpose of the creators;
4. We believe that it is true a lot of creators have the capabilities to produce them selves, though the expertise that we offer create a scalable opportunity with a cost efficient structure for both creators and end users.
5. The Flex2Earn module is a on-of-a-kind loyalty program that is only available with Another-1 technology. The proposal is also to create an advanced experience through interaction with physical product.

I hope this could add some more information on the opportunity and we’re always open to suggestions to meet Creators expectations.

[Another-1]

We’re willing to evaluate integration, the goal of this SIP is to create a tool for creators that can benefit the ecosystem.

Would love to have a chat for coordination and see how we can synergically work together.

[KCL]

@Gonzacolo would you be open to evaluate this option? Maybe an integration could be an extension of your UGC and additionnnal costs could be covered by the @Another-1 SIP.

[sebga]

Hello @Another-1

It does make sense. There are aspects that interest me personally, also as a delegate, I have to look further ahead.
I’m continuing to follow this discussion.

And yes, of course, it’s always a pleasure to share.
Here’s a link to a Mintbase store, each NFT is a certificate of authenticity associated with an actual piece. You can get an idea.
… edit during typing… maybe a sign we need something, mintbase is shutdown, nft still exist but…
So, you can still see some work, in metaverse : ArtbyMIOT or on Instagram @artbymiot

[theKuntaMC]

A reminder to everyone:

• join us on Spaces TOMORROW (Wed) if you’ve got questions about this SIP
• if you cannot join, drop some questions/ thoughts here on the Forum

The recording will be available via X immediately after we record + old Space episodes are cached on our YouTube.

The Sandbox DAO

[Gonzacolo]

Technically, it should be possible to integrate it into our platform, but our focus is on being an experience search engine.

If these Phygital Merchandise items aren’t tied to a specific experience, it might not be the right fit.

We’re currently wrapping up the design phase (final deliveries are due next week) and have already started development. So if you’d like us to allocate time for integration, the time to move forward is ASAP.

@Another-1 please reach out if you think we can help or if you can envision how this integration could work. - My tg is @gonzacolo

Another option would be to redirect users to their platform if needed. This could be useful, especially since DAO platforms might benefit from working together while each focuses on a different aspect.

From my side, it’s worth exploring, but I don’t yet have clarity or concrete action points around it without a previous meeting.

[KCL]

That was maybe my idea just a link to their platform to integrate on the page of the experience that propose merchandise

[Another-1]

Thanks for the interest and we’re absolutely open to discuss synergies among our two SIP.

I think the best way is to keep it simple so a link to our platform would be the easiest to keep the DNA of both of our proposal.

[Another-1]

totally agree!