Provide a concise narrative that clearly states each of (a)–(e) below.
The Sandbox is a virtual world and user generated content gaming platform where players and creators build, own, publish, and monetize experiences and digital assets instead of operating under the control of a centralized game platform operator. Creator tools, NFT based ASSETs, and virtual LAND give the people who make content direct ownership of what they produce and a marketplace in which to sell it.
(Source: Whitepaper, About The Sandbox)
Development priorities center on creator tooling, Marketplace activity, ecosystem grants, and bridge infrastructure between Ethereum and Polygon. Animoca Brands restructured the company in August 2025, cutting more than 50 percent of roughly 250 employees, closing offices in Argentina, Uruguay, South Korea, Thailand, and Turkey along with the Lyon headquarters, and retaining nine global locations. Robby Yung reoriented the roadmap around AI integration, mobile expansion, and The Sandbox 3.0 platform vision. That vision includes SANDchain, a ZKsync powered Layer 2 network for The Sandbox that opened its testnet on 14 October 2025 and targets more than 10,000 transactions per second, and Internet Capital Markets style monetization tools for creators.
(Source: Welcome to The Sandbox, CoinDesk Restructuring Report, Robby Yung Vision, SANDchain Testnet)
The Sandbox combines the VoxEdit creator suite, a Marketplace, virtual LAND, NFT based ASSETs, and tokenized participation so users create experiences, trade digital items, and move value across Ethereum and Polygon surfaces. The platform reports more than 400 brand partners, over 400,000 creators, roughly 25,000 LAND owners, and more than eight million registered wallet users. A custom bridge moves SAND, LAND, and ASSETs between Ethereum and Polygon.
(Source: Whitepaper, Welcome to The Sandbox, The Sandbox Bridge, SANDchain Testnet)
SAND is the native ERC-20 utility token of The Sandbox. It serves as the medium of exchange for in platform transactions covering LAND, ASSETs, and experiences, as the governance token for Sandbox Improvement Proposals, and as the staking asset for reward programs. The token contract lives at 0x3845badAde8e6dFF049820680d1F14bD3903a5d0 on Ethereum and 0xBbba073C31bF03b8ACf7c28EF0738DeCF3695683 on Polygon.
(Source: SAND, Whitepaper, Staking, Etherscan, Polygonscan)
SAND and LAND holders vote on Sandbox Improvement Proposals through Snapshot under a phased progressive decentralization model. A five member Special Council holds veto authority over proposals on grounds of legality, redundancy, conflict, and community interest. The Sandbox Foundation, a Cayman Islands entity, executes DAO decisions and administers the treasury. SIP-39 passed on 25 February 2026 and paused the DAO. Transition ran through 31 March 2026 and the DAO entered dormant mode on 1 April 2026 with no new SIP intake and no new funding decisions. The Sandbox company team now holds finance, assets, contracts, accounting, governance tooling, custody, and banking, and the Foundation runs in minimum maintenance mode to preserve assets and stay compliant.
(Source: The Sandbox DAO, Progressive Decentralization and SIPs, SIP-1, SIP-39, DAO Pause Farewell)
For each existing entity: Labs/DevCo (e.g., Founder, CEO, CTO, COO), Foundation (e.g., President, Executive Director, CFO, COO), and DAO / onchain governance leadership (if applicable) list the: (a) full names, (b) official titles, (c) and prior experience of key team members. For any non-existent entity, explicitly mention it does not exist. External links may be included but they will not factor into the score.
Full Name | Entity | Official Title | Prior Experience |
|---|---|---|---|
Robby Yung | Labs | Chief Executive Officer of The Sandbox, appointed August 2025 | CEO of Investments at Animoca Brands and a director of The Sandbox before appointment, with a long operating record across the Animoca portfolio. |
Arthur Madrid | Labs | Non-Executive Chairman of the board, appointed August 2025, previously Chief Executive Officer | Co-founder of Pixowl, which shipped mobile games with more than 40 million downloads before Animoca Brands acquired it. |
Sébastien Borget | Labs | Global Ambassador, appointed August 2025, previously Chief Operating Officer and Co-Founder | Co-founder of Pixowl and President of the Blockchain Game Alliance, ranked number 4 on CoinTelegraph's 2022 top 100 crypto list. |
Michael Robinson | Foundation | Sole professional independent director of The Sandbox Foundation | The Foundation ratification materials describe his role as professional independent director and disclose no other background. |
Frédéric Montagnon | DAO | Special Council member and Chairman of Arianee | Engineer holding a Master's Degree in Microelectronics who founded and sold six companies before starting Arianee.org and backed roughly 200 startups since 2001. |
Jean-Michel Pailhon | DAO | Special Council member and Co-Founder of Grail Capital | Senior executive at Ledger from 2017 to 2023 who helped grow the company to 850 employees and 200 million dollars in annual revenue. |
Shannon Snow | DAO | Special Council member and Chief Operating Officer of World of Women | Led US Entertainment at Meta and spent more than a decade at Google building and leading teams. |
Yat Siu | DAO | Special Council member and Co-Founder and Executive Chairman of Animoca Brands | Founded Outblaze after beginning his career at Atari Germany and incubated Animoca Brands out of the Outblaze business. |
Sébastien Borget | DAO | Special Council member and Co-Founder and Global Ambassador of The Sandbox | President of the Blockchain Game Alliance, ranked number 4 on CoinTelegraph's 2022 top 100 crypto list. |
Blockworks note: The Sandbox DAO entered dormant mode on 1 April 2026 under SIP-39. The Special Council listed below held governance leadership through the pause. |
Provide a structured description of the DAO's governance, powers, and economic rights. If a DAO does not exist, state so. Address the lettered items below. Even if there is no DAO, there must be an answer to (d).
The Sandbox DAO and The Sandbox Foundation own no disclosed intellectual property. Platform IP, the VoxEdit and Game Maker toolchain, the sandbox-smart-contracts repository, and The Sandbox brand sit with TSB Gaming Ltd. in the public record. The smart contract repository is published under TSB Gaming's GitHub organisation.
(Source: Terms of Use, sandbox-smart-contracts GitHub, About The Sandbox)
Holders of at least 5 SAND or 1 LAND on Ethereum or Polygon vote on Sandbox Improvement Proposals through Snapshot at sandboxdao.eth. LAND converts to voting power at a rate of 1 LAND to 4,500 SAND. Snapshot voting runs offchain and carries no onchain execution path, so The Sandbox Foundation executes DAO decisions, administers the treasury, and employs the DAO support team. The five member Special Council vetoes SIPs on grounds of legality, redundancy, conflict, and community interest. SIP-3 allocated 3,000,000 SAND to LiveOps and authorized the DAO administrator and The Sandbox team to spend that category at their discretion. SIP-39 moved finance, assets, contracts, accounting, governance tooling, custody, and banking to The Sandbox team, with DAO administrator Arasakio supporting the handover through 31 March 2026. The DAO accepts no new SIPs as of 1 April 2026. The DAO holds no privileged role in the SAND token contract. That contract exposes exactly two privileged roles, an admin at 0x6EC4090d0F3Cb76d9f3D8c4D5bb058A225E560a1 and an execution admin at 0xeAa0993E1d21c2103e4f172a20D29371fbaF6D06, and no SIP reaches either role.
(Source: The Sandbox DAO, Snapshot, SIP-1, SIP-3, SIP-39, The Foundation, SAND Admin Safe, SAND Execution Admin Multisig)
Staking and governance are separate token functions. Staking SAND earns reward emissions and confers no governance rights beyond those already available to any holder meeting the 5 SAND or 1 LAND threshold. No lock up mechanism granting superior voting weight in exchange for a longer commitment exists in the public record.
(Source: Staking, The Sandbox DAO Vote)
SAND holders hold no direct revenue distribution rights over protocol income. Treasury influence flows through governance. The Marketplace directs 2.5 percent of each asset sale royalty to The Sandbox Foundation in SAND for the Game Maker Fund, staking, and rewards. SIP-3 budgeted 15,500,000 SAND across staking, LiveOps, content, SAND initiatives, platform, and other DAO controlled categories. SIP-2 ratified payment of all Foundation formation, legal, and director costs from the DAO treasury. The DAO distributed more than 3,000,000 SAND across 38 SIPs between May 2024 and the pause and retained roughly 4.4 million USDC of an original 6.8 million USDC allocation. No governance approved mechanism pays protocol revenue or treasury assets directly to SAND holders.
(Source: The Sandbox Foundation, SIP-2, SIP-3, SIP-39)
SAND and LAND holders suspended the DAO by passing SIP-39 through the standard Snapshot vote, which establishes a simple holder vote as the mechanism that halts DAO operation. No public disclosure names a party with authority to dissolve or wind up The Sandbox DAO or The Sandbox Foundation, and no vote threshold or board resolution mechanism for a full wind up appears in the reviewed record.
(Source: SIP-39, DAO Pause Farewell)
For the Primary Foundation do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
The Sandbox Foundation is a Cayman Islands foundation company limited by guarantee without share capital, incorporated on 20 November 2023. Travers Thorp Alberga acts as Cayman Islands legal counsel, International Protectors and Advisors Ltd acts as supervisor, and International Corporation Services Ltd provides the secretary and registered office.
(Source: SIP-2, Terms of Use)
The Foundation owns no disclosed intellectual property. Its constitutional objects allow it to act as a holding company and investment company, and the reviewed record names no subsidiary entities and no repositories, trademarks, or brands held by the Foundation.
(Source: SIP-2, The Foundation)
The Foundation executes DAO resolutions, administers the treasury, and employs the DAO support team. The Special Council attached to the Foundation vetoes SIPs on grounds of legality, redundancy, conflict, and community interest. The Marketplace routes 2.5 percent of asset sale royalties to the Foundation in SAND for the Game Maker Fund, staking, and rewards. Under SIP-39 the Foundation operates a one year service agreement with The Sandbox on a 44,400 dollar annual budget running to 25 February 2027 to preserve DAO assets and maintain compliance. No disclosed mechanism lets the Foundation change token supply, alter emissions, or override the governance threshold without a passed SIP.
(Source: The Foundation, SIP-2, The Sandbox Foundation, SIP-39)
The Sandbox Foundation holds no powers over TSB Gaming Ltd. Animoca Brands Corporation Limited owns TSB Gaming Ltd., so the Foundation holds no shareholding in the DevCo and no power to appoint or remove its directors. The Foundation's constitutional objects cover holding and investment activity rather than control of an operating company. The only formal link between the two entities is the one year service agreement under SIP-39, and it runs in the opposite direction by placing The Sandbox team in control of finance, assets, contracts, custody, and banking during the DAO pause.
(Source: SIP-2, CoinDesk Restructuring Report, SIP-39)
The Sandbox Foundation holds no privileged role in the SAND token contract. The contract carries two roles, both set at deployment by TSB Gaming Ltd. The admin role sits with a Gnosis Safe version 1.3.0 at 0x6EC4090d0F3Cb76d9f3D8c4D5bb058A225E560a1 configured 3 of 5, and the execution admin role sits with a Gnosis MultiSigWallet at 0xeAa0993E1d21c2103e4f172a20D29371fbaF6D06 configured 2 of 3. Neither multisig and none of their signer addresses is publicly attributed to the Foundation, and the Foundation's own mandate covers execution of DAO decisions and treasury administration rather than token contract administration. The contract carries no pause function and no proxy, so no party holds pause or upgrade authority over SAND.
(Source: The Foundation, Sand.sol Source, SAND Admin Safe, SAND Execution Admin Multisig)
The Marketplace directs 2.5 percent of asset sale royalties to the Foundation in SAND for the Game Maker Fund, staking, and rewards. SIP-3 allocated 1,800,000 SAND to Foundation operations covering governance, legal services, compliance, wallets, payments, and banking. SIP-2 approved a one time 50,000 dollar legal and formation payment and 30,000 dollars per year for director services, both paid from the DAO treasury. No governance approved mechanism directs protocol revenue or treasury assets to Foundation equityholders or to its director as a profit distribution.
(Source: The Sandbox Foundation, SIP-3, SIP-2)
For the Primary DevCo do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
TSB Gaming Ltd., trading as The Sandbox, is a private limited company incorporated in Malta and a wholly owned subsidiary of Animoca Brands Corporation Limited, a Hong Kong company. TSB Gaming issued SAND, built the platform, and remains the operator of record under the current Terms of Use. Animoca Brands confirmed in August 2025 that it has always controlled the project.
(Source: Terms of Use, Animoca Brands TSB Gaming, CoinDesk Restructuring Report)
Animoca Brands incorporated TSB Gaming Ltd. as a Pixowl spin off to hold The Sandbox intellectual property. TSB Gaming publishes the sandbox-smart-contracts monorepo on GitHub. The reviewed public record contains no itemised inventory of the trademarks, codebases, or licence terms held by TSB Gaming Ltd. or any subsidiary.
(Source: About The Sandbox, Animoca Brands TSB Gaming May 2019, sandbox-smart-contracts GitHub)
SIP-39 transferred finance, assets, contracts, accounting, governance tooling, custody, and banking to The Sandbox team from 25 February 2026, with full handover completed by 31 March 2026. SIP-3 authorized The Sandbox team to spend the 3,000,000 SAND LiveOps category at its discretion. No public disclosure identifies a threshold or mechanism that lets TSB Gaming Ltd. change token supply, governance parameters, or treasury allocations without a passed SIP.
TSB Gaming Ltd. holds no ownership stake in The Sandbox Foundation. A Cayman Islands foundation company limited by guarantee without share capital has no shareholders, and the Foundation answers to its supervisor International Protectors and Advisors Ltd and to Michael Robinson as sole director rather than to the DevCo. TSB Gaming's formal power over the Foundation runs through one instrument, the one year service agreement approved under SIP-39, which places The Sandbox team in control of finance, assets, contracts, accounting, governance tooling, custody, and banking while the Foundation operates in minimum maintenance mode on a 44,400 dollar annual budget through 25 February 2027. TSB Gaming also holds influence through the Special Council, on which Sébastien Borget and Yat Siu sit and which vetoes SIPs.
(Source: SIP-2, SIP-39, The Foundation)
TSB Gaming Ltd. deployed the SAND token contract and set both of its privileged roles in the constructor. The admin role sits with a Gnosis Safe version 1.3.0 at 0x6EC4090d0F3Cb76d9f3D8c4D5bb058A225E560a1 configured 3 of 5 across signers 0x913488977Ca55d2Df46934b8417F15bab1Cf516c, 0x470cD26cb8906D7cFe11a18B2C1129829D3aCE62, 0x292b6619Bc5a1b1B8ed8D5d150a1d8f2E3e9641F, 0xeb4F156291bb990884c4333C79010356759aCEBd, and 0x95Ebf63658Bb9E635345A70659b25BFfe3a241a8. That admin appoints and removes super operators through setSuperOperator and transfers its own role through changeAdmin. A super operator moves or burns any holder's SAND without an allowance and sets approvals on behalf of any owner, which makes the 3 of 5 Safe the strongest control surface over the token. The execution admin role sits with a Gnosis MultiSigWallet at 0xeAa0993E1d21c2103e4f172a20D29371fbaF6D06 configured 2 of 3 across signers 0x56305b7517a5F3363bEA7Efd5BAba872c80D7806, 0xB00dcCa83c61b3EE241e9de56Ee37D87D17e2777, and 0xc07EC0339fB4a5080510B2e0b0dE8042268d809b. That role appoints execution operators, who execute arbitrary calls through executeWithSpecificGas and charge the gas cost to a user in SAND. The contract carries no pause function, no proxy, and no upgrade path, and it exposes no mint function outside the constructor, so neither role changes supply.
(Source: Sand.sol Source, SuperOperators Source, ERC20ExecuteExtension Source, SAND Admin Safe, SAND Execution Admin Multisig)
TSB Gaming Ltd. disclosed a distribution and promotion partnership with Klaytn and an advisory partnership with Hashed covering business, strategy, public relations, networking, and listing services for SAND. The Company Reserve of 774,722,223 SAND, equal to 25.82 percent of total supply, sits with TSB Gaming for platform development, partnerships, and operations. No governance approved or contractual mechanism directs protocol revenue, treasury assets, or token distributions to TSB Gaming Ltd. equityholders as a profit distribution.
(Source: Animoca Brands TSB Gaming May 2019, Binance Research, CoinMarketCap)
Disclose launch and initial supply details in a single initial allocation schedule covering the token's launch.
SAND has a fixed maximum supply of 3,000,000,000 tokens, all minted at genesis. TSB Gaming planned 900,000,000 tokens for circulation at launch and retained a reserve of 1,200,000,000 SAND for future use, per the May 2019 issuer disclosure. Every token outside the public sale tranche entered lock up at launch. The May 2019 private placement of 333,333,333 SAND and the wider 2019 private placement of 515,277,777 SAND were fully locked. The August 2020 Binance Launchpad tranche of 360,000,000 SAND carried no lock. As of 27 July 2026 the vesting schedule has run to completion across every original category and circulating supply stands at 2.937 billion SAND against the 3 billion cap. (Source: Animoca Brands TSB Gaming May 2019, Whitepaper, Animoca Brands Launchpad, CoinMarketCap)
The Seed Sale priced SAND at 0.0036 dollars per token and the Strategic Sale priced it at 0.0050 dollars per token. The 23 May 2019 financing tranche reported by Animoca Brands priced 333,333,333 SAND at 0.0072 dollars per token and raised 2.5 million dollars, taken 40 percent in cash and 60 percent in Bitcoin. The Binance Launchpad IEO on 13 August 2020 sold 360,000,000 SAND at 0.008333 dollars per token against a 3 million dollar hard cap. (Source: Binance Research, Animoca Brands TSB Gaming May 2019, Binance Launchpad IEO)
SAND (Source: SAND, CoinMarketCap)
Total and maximum supply are both fixed at 3,000,000,000 SAND. The Sand.sol constructor minted the entire 3,000,000,000 supply to a single beneficiary at deployment and the contract exposes no mint function afterward, so the supply regime is fixed with an inflation rate of zero. The onchain totalSupply call returns 3,000,000,000 SAND. Holders burn their own tokens through burn and super operators burn on their behalf, which reduces total supply, and no programmatic burn mechanism runs against protocol revenue. Circulating supply reached 2.937 billion SAND on 27 July 2026, which puts market capitalisation at 129.57 million dollars and fully diluted valuation at 132.32 million dollars at a price of 0.044107 dollars. (Source: SAND, Sand.sol Source, Etherscan, CoinMarketCap)
Seed Sale and Strategic Sale tokens were 100 percent locked under a three year vest with a 12 month cliff. Founders, team, and advisor tokens were 100 percent locked under a five year vest with a 12 month cliff. The 23 May 2019 tranche carried a 12 month lockup releasing one twelfth per month from the earlier of 1 June 2020 or the platform launch date. The Company Reserve carried a six month lockup and released in a single cliff unlock rather than linearly. Binance Launchpad buyers received unlocked tokens. Every one of these schedules completed in 2025 and SAND now trades fully unlocked. (Source: Binance Research, Animoca Brands TSB Gaming May 2019, Whitepaper, CoinMarketCap)
Address each of the following sub-items based on the project's airdrop status. If a sub-item does not apply to the project's situation, state that explicitly.
Planned but not yet executed airdrop: Not applicable. The Sandbox completed its TGE and has executed its publicly documented SAND airdrop. No pending or unexecuted initial TGE airdrop exists for which a forward-looking recipient wallet list commitment would apply.
Executed airdrop: The Sandbox executed one publicly documented SAND airdrop targeting LAND holders.
Covered user segments: LAND holders. Eligibility was based on owning at least one LAND as of December 20, 2021 at 00:00:00 UTC.
Allocation method: A base-score plus bonus-score system in which earlier LAND purchases received more bonus points, and presale LAND held through the snapshot date qualified for a Diamond Hand multiplier. An example from the official announcement shows 7 LANDs with no bonus score yielding 100 SAND, while 7 LANDs including 6 first-presale purchases yielded 43 total points and 500 SAND.
Per-address source: None. No per-address CSV, JSON, Merkle tree, Dune table, GitHub repository embedding allocations, or RPC claim endpoint has been publicly disclosed for this airdrop. Explorer links are not a substitute for the required per-address source.
No airdrop planned or conducted: Not applicable. The Sandbox has conducted an airdrop, as described in (b).
Blockworks note: Sub-item (b) discloses covered segments and allocation methodology in full, including the snapshot timestamp and the scoring mechanics with a worked example. The gap is the per-address source: the allocation logic is public, but wallet-level allocation data is not. Distribution transactions are traceable on-chain, which does not satisfy the per-address source requirement as defined by this framework.
Projects must disclose all material terms of market-making arrangements that affect token liquidity. If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. For each market maker, include in a table:
If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. If no native tokens were loaned or allocated to market makers, state that explicitly; cash/fiat retainers or fees are not required for this item.
Blockworks note: The Sandbox and TSB Gaming Ltd. have no market making agreements. No market maker has been named, no SAND has been allocated or loaned to a market maker, and no loan, option, call, or retainer structure covering SAND liquidity appears in any public disclosure by the project or by Animoca Brands. Liquidity provision has instead run through open liquidity mining programmes on Uniswap and Polygon, disclosed in Section 9.
(Source: SAND Liquidity Mining, Discontinued Staking Programs, Animoca Brands TSB Gaming May 2019)
Projects must disclose all material terms of centralized or decentralized exchange listings that affect token liquidity. For each listing, include in a table:
If the project has no agreements or deals with CEX or DEX, state that explicitly; doing so earns full credit; cash/fiat fee amounts are not required for this item.
Blockworks note: (Source: Binance Launchpad IEO, Animoca Brands Launchpad, SAND Liquidity Mining, Discontinued Staking Programs)
Disclose all prior token sales by the Project — including fundraising rounds, any material OTC sales to investors, and any discounted market-maker sales. For each sale, provide:
If no prior sales occurred, state that explicitly (e.g., "No prior fundraising, OTC, or discounted MM sales have occurred.").
Blockworks note: The 23 May 2019 tranche of 333,333,333 SAND forms part of the wider 515,277,777 SAND seed allocation reported in the 2020 whitepaper and in Binance Research rather than a separate total. The Sandbox has disclosed no OTC sales and no discounted market maker sales.
(Source: Animoca Brands TSB Gaming May 2019, Animoca Brands Q3 2019 Round, Binance Research, Whitepaper, Animoca Brands Launchpad, Animoca Brands Series B, The Sandbox 20M Round 2024)
If any, list prior exploits or incidents that directly affected the token, token supply, tokenholder balances, token contract, minting controls, burn mechanics, or custody of token supply. This question is not asking about general protocol, application, or smart contract exploits unless the incident directly affected the native token itself. If no prior incidents, state this explicitly (e.g., "No exploits affecting tokenholders or protocol funds as of YYYY-MM-DD").
Incident 1: 2021-01-16, Ethereum, ASSET ERC-1155 contract
Incident 2: 2021-12-25 report and 2022-01-28 migration, Ethereum, LAND contract
Incident 3: 2023-02-26, employee workstation and phishing email
Incident 1: A duplication flaw in the ASSET contract batchTransfer path let a holder send tokens to itself and inflate its own balance.
Incident 2: The prior LAND contract carried a vulnerability that did not permit unauthorized transfers or minting of new LAND.
Incident 3: An unauthorized third party accessed one employee computer and used data found there to send a fake email titled The Sandbox Game PURELAND Access containing malware links.
Incident 1: No malicious exploitation occurred and no funds were lost. The Sandbox redistributed 115,926 copies of 87 unique ASSETs to 2,684 unique holders at no cost to users.
Incident 2: No malicious exploitation occurred and no LAND tokens were compromised.
Incident 3: Access was limited to one employee computer and to user email addresses. No token balances, contracts, or custody systems were affected.
Incident 1: The Sandbox notified marketplaces on 13 January 2021, deployed a fixed contract on 15 January 2021, halted transfers on 16 January 2021 at 00:01 UTC, took a snapshot at 12:00 UTC, and completed redistribution at 18:00 UTC the same day.
Incident 2: The Sandbox deployed a new LAND contract and a migration contract, re-audited the fix, released a migration interface on 28 January 2022, and paid all user migration gas costs.
Incident 3: The Sandbox blocked the employee's accounts, reformatted the laptop, reset related passwords, enforced two factor authentication, warned known recipients, and tightened security policy.
Incident 1: Resolved. A new verified ASSET contract is live and restoration finished on 16 January 2021.
Incident 2: Resolved. Migration opened to every LAND holder and a review confirmed other contracts were not at risk.
Incident 3: Resolved and contained with no further impact identified.
(Source: The Sandbox ASSET Security Update, The Sandbox LAND Migration, Notice of Security Incident, FAQs LAND)
Blockworks note: No exploit has affected SAND token supply, SAND holder balances, the SAND token contract, minting controls, or custody of SAND supply as of 27 July 2026.
Describe material risk factors across the three categories below. Each category includes prompts to address at a minimum.
(a) Regulatory, Legal & Tax Risks — Describe how evolving laws and regulations could affect the project by answering, at a minimum, questions like:
Impact of Regulatory Change on TGE and Listings: (If applicable) How could evolving or conflicting laws and regulations affect your ability to complete the TGE, deliver tokens to purchasers, and list or maintain the token on trading venues in key jurisdictions?
Entity-Level Regulatory Impact: (If applicable) How could regulatory or legal changes impact your core entities (Foundation, DevCo, DAO, affiliated service providers), including enforcement actions, licensing requirements, or forced changes to structure or operations?
Tokenholder Tax Treatment: (If applicable) What uncertainties exist around how tokenholders may be taxed, and make clear that tokenholders are responsible for understanding their own tax obligations?
Jurisdictional & User Access Restrictions: (If applicable) If the project restricts access for certain jurisdictions or user types (e.g., U.S. persons, sanctioned countries, retail vs. professional), what are those restrictions and what risks do they create for users and for the project?
(b) Protocol, Technology & Security Risks — Describe risks to network and contract reliability, correctness, and safety by answering, at a minimum, questions like:
Bugs and Design Flaws: (If applicable) What bugs, design flaws, or implementation errors could exist in your core protocol code, smart contracts, and any bridges, rollups, or oracles that you depend on, and how could these lead to loss of funds or disruption of the protocol?
Security Measures & Their Limitations: (If applicable) What security measures have you taken (audits, formal verification, bug bounties), and what types of failures might these measures still fail to detect or prevent?
(c) Token Economics, Unlocks & Incentive Risks — Describe how the token's economic design and supply schedule could affect holders by answering, at a minimum, questions like:
Critical Economic Assumptions: (If applicable) Which economic assumptions (e.g., staking yields, fee revenue, liquidity incentives, MEV capture, demand for blockspace) are critical for protocol security, utility, and governance, and what happens if those assumptions fail?
Governance Control over Monetary Policy & Rewards: (If applicable) To what extent can governance change monetary policy, fee parameters, or reward allocations (e.g., inflation rate, treasury flows, incentive programs), and how could such changes adversely affect tokenholders?
Impact of Regulatory Change on TGE and Listings
SAND completed its token generation event in 2019 and its public sale on Binance Launchpad in August 2020, so no future TGE is exposed to regulatory change. Listing exposure remains live. SAND trades on centralized venues that apply their own jurisdictional gating, and a reclassification of SAND as a security or a restricted instrument in a major market forces those venues to delist or geofence the pair, which cuts liquidity against the 13.38 million dollar daily volume the token currently carries. The Sandbox operates KYC gating on its own platform, so a tightening of virtual asset service provider rules in Malta or the Cayman Islands directly constrains deposits, staking claims, and Marketplace flow.
(Source: Terms of Use, CoinMarketCap, Staking)
Entity-Level Regulatory Impact
Three entities carry regulatory exposure. TSB Gaming Ltd. is a Malta private limited company and the issuer of record, so Maltese and European Union virtual asset rules govern its ability to operate the platform and the Marketplace. The Sandbox Foundation is a Cayman Islands foundation company limited by guarantee, dependent on Cayman registration, its supervisor International Protectors and Advisors Ltd, and its registered office provider, and a change in Cayman foundation or economic substance rules affects its ability to hold and administer the DAO treasury. Animoca Brands Corporation Limited controls TSB Gaming from Hong Kong and its own regulatory position flows down to the project. The DAO itself entered dormant mode on 1 April 2026, which removes community governance as an independent decision maker and concentrates regulatory risk in the two corporate entities.
(Source: Terms of Use, SIP-2, CoinDesk Restructuring Report, SIP-39)
Tokenholder Tax Treatment
The Sandbox states in its Terms of Use that it provides no tax or financial advice and that users must seek advice from officials in their own jurisdiction. Tokenholders bear sole responsibility for determining and paying tax on SAND acquisitions, disposals, staking rewards, airdrop receipts, and Marketplace proceeds. Tax authorities treat staking rewards and airdrop receipts inconsistently across jurisdictions, and the 2021 LAND holder airdrop and the historical liquidity mining and staking programmes each created receipts whose character and timing differ by country. Tokenholders remain responsible for their own tax obligations regardless of how those receipts are ultimately characterised.
(Source: Terms of Use, New Year SAND Airdrop for LAND Owners, SAND Liquidity Mining)
Jurisdictional & User Access Restrictions
The Sandbox requires KYC verification before a user deposits new SAND or claims weekly staking rewards. Users who have not completed KYC retain withdrawal access but lose access to deposits and reward claims, which creates a tiered platform in which verification status determines feature access. The Terms of Use place the rights and obligations of users under Maltese law and confine legal proceedings to Maltese courts, which forces any user outside Malta into a foreign forum to pursue a claim. The DAO terms describe The Sandbox Foundation as a Cayman Islands foundation limited by guarantee that does not control the wider ecosystem or its underlying blockchains and that owes no fiduciary duty to site users to the fullest extent permitted by law.
(Source: Terms of Use, Staking, The Foundation)
Bugs and Design Flaws
The Sandbox runs SAND, LAND, and ASSET contracts across Ethereum and Polygon and operates a custom bridge between the two chains. A defect in the bridge freezes or duplicates SAND, LAND, and ASSETs in transit and breaks the ability to move value between the two surfaces. A defect in the reward or staking contracts blocks claims or misprices emissions. Both risks have already materialised at the contract layer. A duplication flaw in the ASSET contract batchTransfer path in January 2021 let a holder inflate its own balance, and a separate LAND contract vulnerability reported in December 2021 forced a full contract migration completed in January 2022. Neither incident lost user funds, but both show that implementation errors reach production. The Sandbox also relied on Biconomy gasless transaction relaying for staking and claim pages, so a failure in that third party relayer disrupts reward and staking flow even while the underlying contracts stay sound. SANDchain adds a further surface, since a ZKsync based Layer 2 introduces sequencer, prover, and bridge failure modes that the current Ethereum and Polygon deployment does not carry. The SAND token contract itself carries a concentrated key risk rather than a logic risk. A 3 of 5 Gnosis Safe holds the admin role and appoints super operators, and a super operator moves or burns any holder's SAND with no allowance, so a compromise of three of those five keys drains holder balances directly.
(Source: The Sandbox Bridge, The Sandbox ASSET Security Update, The Sandbox LAND Migration, The Sandbox Biconomy, SANDchain Testnet, SuperOperators Source, SAND Admin Safe)
Security Measures & Their Limitations
CertiK performed formal verification and smart contract review for The Sandbox, and the public sandbox-smart-contracts monorepo requires packages to follow audit practice before release. The LAND replacement contract was re-audited before the January 2022 migration. These measures address contract logic and leave three gaps. Audits do not cover the offchain infrastructure that fronts the contracts, and the February 2023 incident began with a compromised employee workstation that an audit cannot detect. Audits do not cover third party dependencies such as the Biconomy relayer or the Polygon bridge operators. The Sandbox publishes no bug bounty programme, no ongoing monitoring disclosure, and no incident response commitment, so coverage between audits rests on internal practice that the public record does not describe.
(Source: CertiK Audit Review, sandbox-smart-contracts GitHub, The Sandbox LAND Migration, Notice of Security Incident, The Sandbox Biconomy)
Critical Economic Assumptions
SAND has a fixed 3,000,000,000 maximum supply, no minting function, and a fully completed vesting schedule, so the token carries no forward unlock overhang. Circulating supply reached 2.937 billion of 3 billion by 27 July 2026, which puts market capitalisation at 129.57 million dollars and fully diluted valuation at 132.32 million dollars, a gap of under 3 percent. Demand is the binding assumption rather than supply. SAND accrues value only from platform transaction demand covering LAND, ASSETs, and experiences, and that demand has collapsed against the design. Market capitalisation fell from 6.2 billion dollars in 2021 to roughly 700 million dollars by August 2025 and to 129.57 million dollars by July 2026, and daily active users fell to a few hundred. The Sandbox raised 300 million dollars across eight years and cut more than half of its 250 staff in August 2025. The economic model assumes that creator monetization through SANDchain, mobile expansion, and AI tooling rebuilds transaction volume. If that assumption fails, SAND retains a governance function over a dormant DAO and a fee function over a marketplace with negligible throughput. Staking and liquidity rewards no longer offset weak demand, since the Uniswap SAND/ETH programme and the Polygon mSAND/MATIC programme both closed, the latter on 25 October 2022.
(Source: CoinMarketCap, CoinDesk Restructuring Report, SANDchain Testnet, Discontinued Staking Programs, SAND)
Governance Control over Monetary Policy & Rewards
Governance cannot change SAND monetary policy. Maximum supply is fixed at 3,000,000,000 tokens, the Sand.sol constructor performed the only mint, the contract exposes no mint function afterward and no proxy or upgrade path, and no SIP has proposed altering the cap. Governance does control reward allocation and treasury flow, and it has exercised that control repeatedly. SIP-3 budgeted 15,500,000 SAND across staking, LiveOps, content, SAND initiatives, and platform categories, and it handed the 3,000,000 SAND LiveOps line to The Sandbox team to spend at its discretion. SIP-7 added 750,000 SAND to the LAND owner staking pool after more than 8,800,000 SAND had already been distributed to LAND owners. The Marketplace routes 2.5 percent of asset sale royalties to the Foundation for the Game Maker Fund, staking, and rewards. The controlling change is SIP-39. The DAO distributed more than 3,000,000 SAND across 38 SIPs from May 2024 and then paused on 1 April 2026, leaving roughly 4.4 million USDC of an original 6.8 million USDC allocation and a 44,400 dollar annual maintenance budget. Every future decision on reward intensity, treasury deployment, and incentive design now sits with The Sandbox company team rather than with SAND and LAND holders, and holders have no vote to reverse that until the DAO is reconstituted or wound up.
(Source: SIP-3, SIP-7, The Sandbox Foundation, SIP-39, DAO Pause Farewell, Sand.sol Source)
This Token Transparency Filing is provided for general informational purposes only and does not verify or warrant the accuracy of individual answers.
