SIP-3: Initial Budget for the DAO

🎯 SIP: Finished Implemented
1

Council recommendation: Positive :slightly_smiling_face:

What

This SIP (Sandbox Improvement Proposal) introduces and proposes for approval an initial budget for The Sandbox Decentralized Autonomous Organization (The Sandbox DAO) of 15,500,000 SAND for expenses through December 31, 2025.

Holders of SAND and LAND tokens may vote:

  • Yes - Approve this SIP
  • No - Reject this SIP
  • Abstain - Cannot decide

Why

This budget will be used to run the DAO’s basic operations, and provide for SAND to be allocated by the community through vote.

Who

The authors of this SIP are Arasakio and The Sandbox.

SIP Details

The budget will be breakdown into the following categories (in SAND)

Operations:

- 1,800,000 SAND
- *This will be used to run the DAO operations, pay Special Council members, maintain the DAO’s tech stack, pay for required Foundation governance and legal services, pay for the various compliance, wallets, payment and banking services, among other operational expenses as required.*
- This will be managed by the administrative service provider.

Staking:

- 900,000 SAND
- *SAND and LAND staking rewards*
- This will be spent automatically to rewards for staking SAND and LAND tokens, when applicable

LiveOps:

- 3,000,000 SAND
- *This will be used for campaigns to buy back LAND to ensure productive use in The Sandbox ecosystem, LAND rewards, LiveOps rewards and rewards for Avatar holders, among other related items.*
- The administrator and The Sandbox will have authority to spend these amounts at their discretion.

Content:

- 2,500,000 SAND
- *This will be used to reward streamers, pay for Game Jam/VoxEdit contest rewards, Game Maker Fund grants, re-activation of certain NFT collections, among other purposes.*

Sandbox for Good:

- 600,000 SAND
- *This will be used to fund charitable and other community-focused donations or investments.*

SAND Initiatives:

- 3,600,000 SAND
- *This will be used to pay for a Sandbox ambassador program, creator days, crypto training (education for SAND owners), promote of SAND token to 3rd party ecosystems, research, among other SAND-related initiatives.*

NFT:

- 100,000 SAND
- *This will be used to buy NFT collections and for expenses associated with managing the DAO’s existing NFTs.*

Platform:

- 600,000 SAND
- *This will be used to pay for cybersecurity review and updates, finance tokenomics ecosystem features, quality assurance testing, bug bounty, and content moderation, among other related initiatives.*

Other:

- 2,400,000 SAND

TOTAL: 15,500,000 SAND

Expenses that the DAO incurs will be tracked and made visible on its website for transparency.

Voting Options

  • Yes - Approve the budget
  • No - Reject the budget
  • Abstain - Cannot decide

Voting Period: 14 days

APPENDIX

8 Likes
3

Will be voting no on this primarily to cut staking out altogether, and to reduce the budget for SB for good to 300k SAND.

As much as it is tempting to spend all the newfound SAND that’s present in the DAO, prudent budgeting is required to ensure the longevity of our treasury.

Staking yield has been lacklustre, and it doesn’t benefit the ecosystem as a whole. In fact, it adds to SAND sell pressure on open markets.

I’d say that our main focus should be first to getting the house in order, and then proceed to consider doing good on the next disbursement of SAND from the foundation.

6 Likes
4

Here’s the lowdown on how we should handle things,

First off, we gotta tighten up the budget and stick to the basics. We’re spread too thin as it is, so let’s focus on the essentials and build up from there later. Next, we need to have a good, hard look at what we’re paying the council members and lawyers. Break it all down, piece by piece, and make sure everyone’s on board with it by voting. That way, we keep things fair and square.

As for the funds for charities, streamers, and staking, let’s put those decisions on the back burner for now. We should get a better grip on how the DAO works before throwing money around. Plus, we gotta watch out for anyone trying to milk the DAO for their own benefit. Finally, we gotta fix up the website. It’s gotta be easy to use, with better wallet integration and sandbox accounts so folks can navigate it without a hassle.

Cheers,
Roofue

3 Likes
5

Meanwhile I want The Sandbox for Good doubled.

But as we have seen with all of my purchases and promotions, I very much support the Charity work TSB does so I am biased towards putting money towards helping others.

6

The one HUGE problem with this is just like US Congress, there is way too much packed into this one bill (SIP). My suggestion, should the DAO choose to accept it, would be to scrap this and break these down to get a proper vote. Instead of squeezing in something that may not normally get passed because it’s buried in with other stuff that will pass. If we want to make the DAO a true DAO we need to be able to properly vote stuff.

6 Likes
7

I agree that the budget is too vague on the details. I’m happy for the advisory board to be paid for the value they add to the ecosystem. But there was no open nomination period, so besides knowing some of the advisors run studios creating excellent experiences, the community doesn’t really know what they’re bringing to the table - what they’re getting paid for. It would be nice to see what they’re plans are for their term.

5 Likes
8

Is advisory board lumped into special council? Would be great to see a breakdown of how these numbers were determined.

3 Likes
9

Love the snapshot and SIP! Representing council member of the BOTB DAO which has a 6x6 plot. How can we contribute to this proposal?

Tagging @bigbull for reference.

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3 Likes
10

Objection: The point of the dao is to delegate power, not to exercise dao power for personal gain

2 Likes
11

In every budgeted allocation, there’s a clause that states, “This may be used.” This is too vague and gives you the power to do whatever you like with the allocation once approved.

As I stated before, the TSB has 3.1 million VP as of now (not considering the glitch that allows the TSB to have more power due to owning the 5360 lands) that voted YES.

So why ask us?
Why is this even an SIP?

Ultimately, no matter how 99% of the community votes, the TSB will have it their way.

4 Likes
12

I object, I don’t like it very much :face_with_raised_eyebrow:

13

A lot of budget has been allocated to Sand initiatives and the Creator program. Wasn’t this game play to earn? You turned it into create to earn. This is very false. Players have increased, avatar rewards have been reduced a lot, lands are constantly losing value, you should allocate most of the budget for players to solve these problems. If you continue with the current management system, I think Sandbox’s future is not bright.

2 Likes
14

Could you describe, even in a brief manner, the “other” category? There is still more than 15% of the total budget allocated to this category.
Thank you

1 Like
15

The budget seems balanced. Can you detail out on what does “Others” entail?

Additionally, I think we should reduce the budget for Sandbox for Good. It seems quite vague and does not do alot of good to the DAO.

1 Like
16

Hello @nalbax, “Other” categories is the DAO Reserve. Those funds are dedicated to finance SIP that don’t fall into others categories, but might benefit the mission of The Sandbox.

1 Like
17

I voted no to this SIP, for reasons others have mentioned. Specifically, the need to be able to vote on individual components of the budget, since some are not as high priority for many, while others are pretty obviously critical.

Perhaps also instead of a simple yes/no format, you could give us 4 options - for example, under “Platform” give us the option of
A. 200,000 SAND
B. 400,000 SAND
C. 600,000 SAND
D. 800,000 SAND
E. 0 SAND (Reject)

This is just an idea, but others know better from other DAOs they’ve been involved with. This is my first!

1 Like