Detailed explanation of Binance Launchpad project Space ID: economic model, airdrop details and how to obtain subsequent airdrops

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 will be a BNB-only sale. Specifically, the amount of investment that users can make will be determined based on the average daily BNB holdings of users on Binance for 5 days. The BNB holding 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 officials also announced that 10% of its total token supply is reserved for community airdrops.
In this article, PANews will explain in detail the operational progress of Space ID, 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 the official blog information, SPACE ID was announced in April 2022, and opened pre-registration applications and public registration for .bnb domain names. At that time, early and active members of the SPACE ID community, community contributors, partners, etc. were given priority to apply for .bnb domain names.
In July 2022, SPACE ID was included in the list of participants of the MVBV incubation project on the BNB chain. In September, it received seed round investment from Binance Labs and cooperated and integrated with many projects in the BNB Chain ecosystem. In October, it was included in the list of winners of the fifth batch of BNB Chain's Web3 Accelerator Program. On February 7, 2023, SPACE ID announced the completion of a $10 million strategic financing led by Polychain Capital and dao5, with participation from other institutions and industry leaders.
Operational Progress
After the launch of SPACE ID domain name service, it launched bnb.me based on IPFS, building 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 listed and transferred. They contain value that can be exchanged for SID Points. SID Points can only be used on the SPACE ID mainnet and can be exchanged for gift cards purchased by users or received from events or giveaways. The ratio of SID Point to USD is 1:1. There are currently 3 different values ​​of SPACE ID gift cards: $650, $160 and $5, which can be exchanged for 650, 160 and 5 SID Points respectively.
The referral program will be launched in November 2022. .bnb domain name holders can earn commissions by sharing referrals. The more people you invite, the higher the commission rate you get. The referrer can get up to 15% of the registration fee of the invitee.
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, we 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, SPACE ID has registered 454,200 .bnb domain names since its launch in mid-September last year, with 263,747 independent holding addresses. The SPACE ID .arb domain name service, launched in February 2023 in collaboration with the ARB ID team, currently has 96,964 registrations and 72,503 independent holding addresses.
According to Opensea data, there are 813 three-character .bnb domain names, 6,766 four-character domain names, and 446,621 five-character and above domain names. There are 1,128 three-character .arb domain names, 3,087 four-character domain names, and 92,749 five-character and above domain names.
The domain name service fee for a .bnb domain name with three characters is $650 per year, the domain name service fee for a 4-character domain name is $160 per year, and the domain name service fee for 5 or more characters is $5 per year. The domain name service fee for a .arb domain name with three characters is $500 per year, the domain name service fee for 4 characters is $100 per year, and the domain name service fee for 5 or more characters is $5 per year.
Based on this, it can be roughly calculated that the SPACE ID team earned $3.84 million from the .bnb domain name, and the ARB ID team earned $1.33 million from the .arb domain name. 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
SPACE ID's governance token is ID, with a total supply of 2 billion. It is designed to play a key role in the project's decision-making process, allowing users to have a say in the direction and future of SPACE ID. The ID token is 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. It has the following functions:
1) Staking: Staking ID tokens can get discounts on SPACE ID domain NFT market transaction fees and registration discounts for SPACE ID domains. 2) Payment: Used as a payment method in the SPACE ID ecosystem and Web3 Name SDK integration. 3) Governance: ID token holders can participate in and vote on proposals of the SPACE ID DAO.
According to the official blog, 20% of the total supply of ID tokens will be used for seed round sales, with a release cycle of one-year cliff and then a linear release on a quarterly basis in a five-year cycle; 8% will be used for strategic sales, with a release cycle of one-year cliff and then a linear release on a quarterly basis in a three-year cycle; 15% will be used for the core team, with a release cycle of one-year cliff and then a linear release on a quarterly basis in a five-year cycle; 7% will be used for consultants, with a release cycle of one-year cliff and then a linear release on a quarterly basis in a three-year cycle; 10% will be used for the ecosystem, with a release cycle of 50% unlocked after launch, and the rest will be released linearly on a monthly basis in a three-year cycle; 13% will be used for marketing, with a release cycle of 10% unlocked after launch, and the rest will be released linearly on a monthly basis in a four-year cycle; 12% will be used for the foundation, with a release cycle of four-year monthly linear release; 10% will be used for community airdrops, with a release cycle of 30% unlocked after launch, and the rest will be released linearly on a monthly basis in a two-year cycle; 5% will be used for Binance Launchpad, and all will be unlocked after launch.
In this model, the team obtained more than 12.5 million US dollars (the amount of seed round fundraising is unknown) by selling 33% of the total tokens, and 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 the data disclosed in the Binance research report, the initial circulation of ID tokens after the launch is 286 million (accounting for 14.30% of the total token supply), and the circulation volume will reach 28.4% one year later, and will be fully released in December 2028.
Expected market value
According to Coinmarketcap data, the current total circulation market value of ENS, the domain name service provider of ETH ecosystem, is $1.456 billion, with a peak of $7.6 billion and a current circulation market value of $294 million. According to Opensea data, the current total transaction volume of ENS domain names 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 domain names with five characters or more is 2,124,031. Based on this data, the domain name registration fee income is estimated to be $52.09 million (excluding the income from domain name renewals)
According to the strategic round financing previously disclosed by SPACE ID, it can be estimated that its strategic round fundraising price is 10 million/(2 billion*0.08)=0.0625 US dollars. Based on this price, the initial circulation market value of SPACE ID tokens after listing on the secondary market is 17.87 million US dollars, and the full circulation market value is 125 million US dollars. Calculated at the Binance Launchpad price of 0.025 US dollars, the initial circulation market value of SPACE ID tokens after listing on the secondary market is 7.15 million US dollars, and the full circulation market value is 50 million US dollars.
In comparison, the domain name registration fee income of ENS is 13.56 times that of SPACE ID, and the total transaction volume (converted to the current US dollar value) is 7.7 times. Based on this estimate, the full circulation market value of SPACE ID tokens after listing will be one-tenth of the ENS market value, and the market value of ID tokens will be around US$150 million, and its fair price is calculated to be US$0.075. If calculated at one-tenth of the circulation market value, the circulation 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 the premium factor that SPACE ID, as a Binance Launchpad project, will generate a premium in the secondary market that exceeds reasonable valuation.
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% (2.1% of the total supply) will be airdropped to early users and have snapshot qualifications, which will be open to all SPACE ID users when Binance opens trading. Early users can claim 35% of the total airdrop for the first time, which will be released monthly over a 2-year cycle, and more distribution details will be announced within three days. The rest of the community airdrop allocation will be reserved for contributors in future activities and will be released gradually.
Users can now follow SPACE ID's Voyage series of activities. This series of activities is a loyalty program dedicated to the community and only for the community. 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 account, enter the Discord channel and obtain the corresponding identity, and guides users to set the domain name Primary Name of the wallet address. The second season event "Legacy" guides 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's activities bring 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 the Primary Name on the SPACE ID official website. In addition, the .bnb domain name must be displayed in the personal Twitter nickname. The displayed domain name does not have to match the .bnb domain name held, 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 yet ended. Users can go to the SPACE ID official channel to check the participation link to win the subsequent ID airdrop.
 Summarize
According to SPACE ID's plan, SID Launchpad for Custom TLD Domain Names will be launched in the second quarter of 2023, when the community can easily build and launch custom TLDs. Multi-chain domain name infrastructure will be launched to provide multi-chain support for domain names. SPACE ID DAO will also be released. In the third quarter of 2023, ID tokens will be implemented as payment currency on SPACE ID, and a domain name NFT gated merchandise store will be launched to provide personalized merchandise for SPACE ID domain name holders. At the same time, a developer funding program will be launched to build and further expand the ecosystem. In the fourth quarter of 2023, the ID token staking function will be launched, and 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 the economic model of SPACE ID, more than 50% of the tokens are officially owned, more than 30% are used for sales, and only 10% are distributed to the community. The retroactive incentives are relatively low and the cycle is as long as two years. Therefore, the model is extremely centralized and does not meet the original intention of the planned DAO.
According to the total transaction volume and registration number of its domain names compared with ENS domain names, they are about 10 times different. This is mainly due to the legitimacy and high consensus of ENS domain names. However, from the fact that the number of characters in its registered domain names is very small, and the proportion of five-digit characters is very high, it can be seen that the registered users of SPACE ID domain names are more likely to participate in the registration for the expectation of airdrops, and the number of users who register for consensus speculation or use is relatively low.
According to the official operation progress, SPACE ID officials continue to improve the consensus and usage demand of its domain names. According to the 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. On its official website, you can also see 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 ENS domain names have not yet been multi-chained or have never had multi-chain plans, SPACE ID integrates multiple other EVM chains and L2 ecosystems to build domain name services for them, occupying areas that ENS domain names have not touched, which is a better choice from a business model perspective. As for how large the domain name and platform layout of SPACE ID can be expanded and whether it really meets market demand, further observation is needed.