On March 16, Binance officially announced that it will launch the 30th Launchpad project Space ID (ID). This sale will be based on the investment model and is exclusive to BNB. Specifically, the user's investment amount is determined based on the user's average daily BNB holdings on Binance for the 5th day. The BNB position snapshot period is from 8:00 am on March 17, 2023 to 8:00 am on March 22, 2023, Beijing time. At the same time, Space ID officially announced that 10% of its total token supply is reserved for community airdrops.

This article will give you a detailed explanation of Space ID’s operational progress, token economic model, expected market value, airdrop details, and how to obtain subsequent airdrops.

SPACE ID is a decentralized domain name protocol based on the BNB chain and the Arbitrum One chain, providing users with a one-stop Web3 domain name and identity platform. According to official blog information, SPACE ID will be announced in April 2022, and pre-registration applications and public registration for the .bnb domain name will be opened. At that time, early and active members, community contributors, partners, etc. in the SPACE ID community received priority opportunities to apply for the .bnb domain name.

In July 2022, SPACE ID obtained the list of participants of the MVBV incubation project on the BNB chain. In September, it received a seed round investment from Binance Labs and cooperated and integrated with many projects in the BNB Chain ecosystem. In October, he won the fifth batch of Web3 accelerator program winners of BNB chain. On February 7, 2023, SPACE ID announced the completion of a US$10 million strategic financing led by Polychain Capital and dao5, with participation from other institutions and industry leaders.

Operational progress

After the SPACE ID domain name service was launched, it launched bnb.me based on IPFS to build a way to access websites hosted on the decentralized network, providing users with a simple and easy-to-use website builder that can help users Launch a decentralized website in less than a minute.

The gift card service will be launched in October 2022. Gift cards are BEP-1155 type NFTs that can be put on the shelves and transferred for gifting. It contains value that can be redeemed for SID Points, which can only be used on the SPACE ID mainnet and can be redeemed through gift cards purchased by users or received from events or giveaways. The ratio of SID Points to U.S. dollars is 1:1. There are currently three SPACE ID gift cards of different values: $650, $160 and $5, which can be redeemed for 650, 160 and 5 SID Points respectively.

A referral program will be launched in November 2022, and .bnb domain name holders can earn commissions by sharing recommendations. The more people you invite, the higher the commission rate you get. The referrer can receive up to 15% of the invitee's registration fee.

In January 2023, the .bnb domain name service was integrated with the BNB chain block browser BscScan. Users can use the .bnb domain name to search for on-chain transaction data, and the readable .bnb domain name will be displayed on BscScan instead of the traditional address. In February 2023, it joined the SPACE ID 2.0 ecosystem with the Web3 domain name service provider ARB ID team to jointly build a universal name service network.

According to block explorer data, since its launch in mid-September last year, SPACE ID has registered 454,200 .bnb domain names and 263,747 independently held addresses. The SPACE ID .arb domain name service, launched in February 2023 in conjunction with the ARB ID team, currently has 96,964 registered addresses and 72,503 independently held addresses.

According to Opensea data, the number of three-character domain names of the .bnb domain name is 813, the number of four-character domain names is 6,766, and the number of domain names of five or more characters is 446,621. The number of three-character .arb domain names is 1,128, the number of four-character domain names is 3,087, and the number of five or more character domain names is 92,749.

The service fee for a three-character .bnb domain name is US$650 per year, the service fee for a four-character domain name is US$160 per year, and the service fee for a domain name with five or more characters is US$5 per year. The service fee for a three-character .arb domain name is US$500 per year, the service fee for a four-character domain name is US$100 per year, and the service fee for a domain name with five or more characters is US$5 per year.

Based on this, it can be roughly calculated that the SPACE ID team’s revenue from the .bnb domain name is US$3.84 million, and the ARB ID team’s revenue from the .arb domain name is US$1.33 million. According to data from multiple NFT trading platforms, the current total transaction volume of the .bnb domain name is 49,744 BNB, and the current total transaction volume of the .arb domain name is 338 ETH.

economic model

The governance token of SPACE ID is ID, with a total supply of 2 billion. Designed to play a key role in the project's decision-making process, giving users a say in the direction and future of SPACE ID. ID tokens are an important part of the growth and sustainability of the SPACE ID ecosystem, incentivizing users to participate in the project and contribute to its success. Specifically it has the following functions:

1) Pledge: By pledging ID tokens, you can get discounts on SPACE ID domain name NFT market transaction fees and registration discounts on SPACE ID domain names.

2) Payment: Used as a payment method in the SPACE ID ecosystem and Web3 Names SDK integration.

3) Governance: ID token holders can participate in and vote on SPACE ID DAO proposals.

According to the official blog, 20% of the total supply of ID tokens is used for seed round sales, with a release cycle of 1 year after the cliff and linear release on a quarterly basis in a five-year cycle; 8% is used for strategic theory sales, with a release cycle of 1 year after the cliff. Released linearly on a quarterly basis in a three-year cycle; 15% belongs to the core team, and the release cycle is linearly released quarterly in a five-year cycle after a one-year cliff; 7% belongs to consultants, and the release cycle is linearly released quarterly in a three-year cycle after a one-year cliff. Release; 10% is used for the ecosystem, and the release cycle is to unlock 50% online, and the rest is released linearly on a monthly basis in a three-year cycle; 13% is used for marketing, and the release cycle is to unlock 10% online, and the rest is released linearly on a four-year cycle. Monthly linear release; 12% belongs to the foundation, and the release cycle is linearly released monthly on a four-year cycle; 10% is used for community airdrops, and the release cycle is 30% unlocked online, and the rest is linearly released monthly on a two-year cycle; 5% Used on Binance Launchpad, all unlocked when online.

In this model, the team obtained more than 12.5 million US dollars through sales of 33% of the total allocated tokens (the seed round fundraising amount is unknown), a total of 57% was allocated to the team, foundation, consultants, etc., and only 10% was allocated to the community. . It can be seen that the distribution of SPACE ID tokens is relatively centralized, and the amount obtained by the community is relatively low.

According to data disclosed in the Binance research report, the initial circulation of ID tokens after the launch was 286 million (accounting for 14.30% of the total supply of tokens). The circulation after one year reached 28.4%, and it will be released in December 2028. .

expected market capitalization

According to Coinmarketcap data, the current full circulation market value of ENS, the ETH ecological domain name service provider, is US$1.456 billion, with a peak value of US$7.6 billion, and the current circulation market value is US$294 million. According to Opensea data, the current total transaction volume of the ENS domain name is 75,000 ETH. The number of three-character domain names is 41,718, the number of four-character domain names is 92,333, and the number of five-character and above domain names is 2,124,031. Based on this data, domain name registration fee revenue is estimated to be US$52.09 million (excluding domain name renewal revenue)

According to the strategic round of financing previously disclosed by SPACE ID, its strategic round fundraising price can be estimated to be 10 million/(2 billion*0.08)=0.0625 US dollars. Based on this price calculation, the initial circulation market value of SPACE ID tokens after they are launched on the secondary market is 17.87 million U.S. dollars, with a full circulation market value of 125 million U.S. dollars. Based on the Binance Launhpad price of US$0.025, the initial circulation market value of SPACE ID tokens after being listed on the secondary market is US$7.15 million, and the full circulation market value is US$50 million.

In comparison, ENS domain name registration fee revenue is 13.56 times that of SPACE ID domain name registration fee revenue, and the total transaction volume (equivalent to current US dollar value) is 7.7 times. Based on this, it is estimated that the full circulation market value of the SPACE ID token after its launch will be one-tenth of the market value of ENS. The market value of the ID token will be approximately US$150 million, and its fair price is calculated to be US$0.075. If calculated as one-tenth of the circulating market value, the circulating market value of ID tokens is US$29.4 million, and its fair price is US$0.1. This estimate is for reference only and does not include SPACE ID as a Binance Launchpad project, which will generate a premium beyond reasonable valuation in the secondary market.

Airdrop details and future airdrop rules

According to the official blog, 10% of the total supply of ID tokens is reserved for community airdrops, of which 21% of the community airdrop portion (accounting for 2.1% of the total supply) will be airdropped to early adopters who have snapshot qualifications and will be airdropped in When Binance opens trading, it will be open to all users who are early adopters of SPACE ID. Early users can claim 35% of the total airdrop amount for the first time, which will then be released on a monthly basis in a two-year cycle. More distribution details will be announced within three days. The remainder of the community airdrop allocation will be reserved for contributors in future events and will be released gradually.

Users can now follow SPACE ID’s Voyage series of activities. This series is a loyalty program dedicated to and for the community only. SPACE ID will launch a series of activities on Galxe from December 16, 2022 to reward all core loyal users with non-transferable Voyage NFTs.

Its first season event "Prime" requires users to follow the official Twitter, enter the Discord channel and obtain the corresponding identity, and guide users to set the domain name Primary Name of the wallet address. The second season event "Legacy" guided users to purchase or redeem a SPACE ID gift card once.

According to official information, its third season event "Awakening" started in January. This season event brings new challenges, more rewards, and more opportunities for users to explore SPACE ID. To participate in SPACE ID Voyage, users must register a .bnb or .arb domain name and set a Primary Name on the SPACE ID official website. In addition, the .bnb domain name needs to be displayed in the personal Twitter nickname. The domain name displayed does not have to match the .bnb domain name held exactly, as long as it contains .bnb (prefixes and suffixes are allowed). For example, the Twitter profile name "Allen | 12345.bnb" is valid. The third season has not ended yet. Users can go to the official SPACE ID channel to check the participation link to win subsequent ID airdrops.

Summarize

According to SPACE ID's plan, the SID Launchpad for Custom TLD Domain Names will be launched in the second quarter of 2023, by which time the community can easily build and launch custom TLDs. Launch multi-chain domain name infrastructure to provide multi-chain support for domain names. And will release SPACE ID DAO. In the third quarter of 2023, ID tokens will be implemented on SPACE ID as a payment currency, and a domain name NFT gated product store will be launched to provide personalized products for SPACE ID domain name holders. At the same time, a developer funding program will be launched to establish and further expand ecosystem. The ID token staking function will be launched in the fourth quarter of 2023. Staking users can obtain domain name discounts and handling fee discounts, and issue SPACE ID identifiers (:colon domain names), which can represent all identities and multi-chain addresses.

According to SPACE ID's economic model, more than 50% of the tokens will be allocated to the official, more than 30% will be used for sales, and only 10% will be distributed to the community. The retroactive incentives are relatively low and last for two years. Therefore, this model is extremely centralized and does not meet the original intention of the planned DAO.

Based on a comprehensive comparison of the total transaction volume and number of registrations of its domain names with those of ENS domain names, the difference between them is about 10 times that of ENS domain names. The main reason for this is the orthodoxy and high degree of consensus of the ENS domain name. However, it can be seen from the fact that the registered domain name has very few three-digit characters and a very high proportion of five-digit characters. Registered users of the SPACE ID domain name are more Most people register to gain anticipation for airdrops, and the number of users who register for consensus hype or use is relatively low.

According to official operational progress, SPACE ID officials continue to improve the consensus and usage requirements of their domain names. According to a Binance research report, SPACE ID’s .bnb domain name service has been successfully integrated with more than 100 projects and protocols (including BscScan and Trust Wallet).

At the same time, SPACE ID plans to launch an upgraded version, SPACE ID 2.0, on February 1, 2023. SPACE ID 2.0 provides a one-stop Web3 domain name and identity platform to discover, register, trade and manage Web3 domain names. You can also see on its official website that SPACE ID aggregates ENS domain names, arb domain names and bnb domain names. In addition, SPACE ID 2.0 also includes a Web3 domain name SDK and API for cross-blockchain developers, and will launch multi-chain domain name services to support more blockchains. It can be seen that it intends to break the existing pattern and establish itself as the backbone of the Web3 domain name platform.

Under the premise that the ENS domain name has not yet been multi-chained or has never had a multi-chain plan, SPACE ID integrates multiple other EVM chains and L2 ecology to build domain name services for it and occupy areas that the ENS domain name has not touched. From a business model perspective It might not be a better choice. As for how far SPACE ID's domain name and platform territory can be expanded, and whether it truly meets market demand, it remains to be seen further.