Comprehensive analysis of the Space ID Token economic model, airdrop details, and expected market value

Author: Misty Sea, PANews

Original Title: "Detailed Explanation of Binance Launchpad Project Space ID: Economic Model, Airdrop Rules, and How to Obtain Subsequent Airdrops"

On March 16, Binance officially announced the launch of its 30th Launchpad project, Space ID (ID). This sale will be based on an investment model, specifically for BNB. The specific investment limit for users will be determined based on their average daily BNB holdings on Binance over a 5-day period. The BNB holding snapshot period is from 8 AM on March 17, 2023, to 8 AM on March 22, 2023, Beijing time. Meanwhile, Space ID has also announced that 10% of its total token supply is reserved for community airdrops.

In this article, PANews will provide a detailed explanation of Space ID's operational progress, token economic model, expected market value, airdrop rules, and how to obtain subsequent airdrops.

The decentralized domain protocol SPACE ID provides a one-stop Web3 domain and identity platform for discovering, registering, trading, and managing Web3 domains. Additionally, SPACEID 2.0 includes a Web3 domain SDK & API for cross-blockchain developers and will launch multi-chain domain services to support more blockchains. According to official blog information, SPACE ID was announced in April 2022, and pre-registration applications for .bnb domains were opened for public registration. Early and active members of the SPACE ID community, community contributors, and partners were granted whitelist access to participate in the pre-registration of .bnb domains.

In July 2022, SPACE ID was included in the participant list of the MVBV incubation project on the BNB chain. In September, it received seed round investment from Binance Labs and collaborated with many projects within the BNB Chain ecosystem. In October, it was awarded in the fifth batch of the Web3 Accelerator Program on the BNB chain. On February 7, 2023, SPACE ID announced the completion of a $10 million strategic financing round led by Polychain Capital and dao5, with participation from other institutions and industry leaders.

Operational Progress

After the launch of SPACE ID domain services, its community incubated bnb.me, which is based on the SPACE ID decentralized domain protocol, providing a way to access websites hosted on decentralized networks. It offers users a simple and easy-to-use website builder that can help them launch a decentralized website in less than a minute.

In October 2022, a gift card service was launched. The gift cards are BEP-1155 type NFTs that can be listed and transferred as gifts. SPACE ID gift cards can be exchanged for SID Points, which can be used to register domains or renew domain registrations. The ratio of SID Points to USD is 1:1, and there are currently three different value SPACE ID gift cards: $650, $160, and $5, which can be exchanged for 650, 160, and 5 SID Points, respectively.

In November 2022, a referral program was launched, allowing .bnb domain holders to earn commissions by sharing referrals. The more people invited, the higher the commission rate. Referrers can earn up to 15% of the registration fees of the invited users.

In January 2023, the .bnb domain service integrated with the BNB chain block explorer BscScan, allowing users to search on-chain transaction data using .bnb domains, displaying readable .bnb domains instead of traditional addresses on BscScan. In February 2023, the Web3 domain service provider ARB ID team joined the SPACE ID 2.0 ecosystem to jointly create a universal naming service network.

According to block explorer data, since its launch in mid-September last year, SPACE ID has registered 456,392 .bnb domains, with 265,375 unique holding addresses. The SPACE ID .arb domain service, launched in February 2023 in collaboration with the ARB ID team, currently has 97,015 registered domains and 67,641 unique holding addresses.

According to Dune data, the number of three-character .bnb domains is 1,878, the number of four-character domains is 12,588, and the number of five or more character domains is 441,695. The number of three-character .arb domains is 1,186, the number of four-character domains is 10,843, and the number of five or more character domains is 84,986.

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

The service fee for three-character .bnb domains is $650 per year, for four-character domains is $160 per year, and for five or more character domains is $5 per year. The service fee for three-character .arb domains is $500 per year, for four-character domains is $100 per year, and for five or more character domains is $5 per year.

Based on this, it can be roughly calculated that the SPACE ID team has generated $5.3 million in revenue from .bnb domains, while the ARB ID team has generated $1.55 million from .arb domains. According to data from multiple NFT trading platforms, the total trading volume of .bnb domains is currently 49,744 BNB, while the total trading volume of .arb domains is currently 758 ETH.

Economic Model

The governance token of SPACE ID is ID, with a total supply of 2 billion tokens. It aims to play a key role in the decision-making process of the project, allowing users to have a say in the direction and future of SPACE ID. The ID token is an important component 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 specific functions:

1) Staking: Staking ID tokens can earn discounts on transaction fees in the SPACE ID domain NFT marketplace and registration discounts for SPACE ID domains.

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

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

According to the official blog, 20% of the total supply of ID tokens is allocated for seed round sales, with a release schedule of a 1-year cliff followed by linear quarterly releases over five years; 8% is for strategic sales, with a release schedule of a 1-year cliff followed by linear quarterly releases over three years; 15% is allocated to the core team, with a release schedule of a 1-year cliff followed by linear quarterly releases over five years; 7% is for advisors, with a release schedule of a 1-year cliff followed by linear quarterly releases over three years; 10% is for the ecosystem, with a release schedule of 50% unlocked at launch, and the remainder released linearly monthly over three years; 13% is for marketing, with a release schedule of 10% unlocked at launch, and the remainder released linearly monthly over four years; 12% is allocated to the foundation, released linearly monthly over four years; 10% is for community airdrops, with a release schedule of 30% unlocked at launch, and the remainder released linearly monthly over two years; 5% is for Binance Launchpad, fully unlocked at launch.

In this model, the team allocates 15% of the total token supply, with 19% allocated to the foundation and advisors, and only 10% allocated to the community. This indicates that the allocation of SPACE ID tokens to the community is lower than that of the team.

In this model, the team has sold 33% of the total token supply, raising over $12.5 million (the seed round fundraising amount is unknown), with 57% allocated to the team, foundation, advisors, etc., and only 10% allocated to the community. This shows that the allocation of SPACE ID tokens is relatively centralized, with a lower share for the community.

According to data disclosed in Binance's research report, the initial circulating supply of the ID token after its launch was 286 million (14.30% of the total token supply), which increased to 28.4% after one year, and will be fully released by December 2028.

Expected Market Value

According to CoinMarketCap data, the current fully diluted market capitalization of the ETH ecosystem domain service provider ENS is $1.456 billion, with a peak of $7.6 billion and a current circulating market capitalization of $294 million. According to OpenSea data, the total trading volume of ENS domains is currently 75,000 ETH. The number of three-character domains is 41,718, the number of four-character domains is 92,333, and the number of five or more character domains is 2,124,031. Based on this data, the estimated revenue from domain registration fees is $52.09 million (excluding revenue from domain renewals).

Based on the strategic round financing previously disclosed by SPACE ID, the estimated strategic round fundraising price is $10 million / (2 billion * 0.08) = $0.0625. Based on this price, the initial circulating market capitalization of the SPACE ID token after its launch in the secondary market is estimated to be $17.87 million, with a fully diluted market capitalization of $125 million. Calculating with the Binance Launchpad price of $0.025, the initial circulating market capitalization of the SPACE ID token after its launch in the secondary market is estimated to be $7.15 million, with a fully diluted market capitalization of $50 million.

In comparison, the revenue from ENS domain registration fees is 13.56 times that of SPACE ID domain registration fees, and the total trading volume (converted to current USD value) is 7.7 times. Based on this, it is estimated that the fully diluted market capitalization of the SPACE ID token after its launch will be one-tenth of ENS's market capitalization, which would put the market value of ID tokens at around $150 million, calculating its fair price at $0.075. If calculated as one-tenth of the circulating market capitalization, the circulating market capitalization of ID tokens would be $29.4 million, with a fair price of $0.1. This estimate is for reference only and does not take into account the premium factors that may arise from SPACE ID being a Binance Launchpad project, which could lead to an unreasonable valuation in the secondary market.

Airdrop Rules and Future Airdrop Regulations

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 who have already qualified for the snapshot. This will be open for all users who have tried SPACE ID when Binance opens trading. Early users can claim all airdrop shares at once without needing to lock them up, and more distribution details will be announced within three days. The remaining portion of the community airdrop allocation will be reserved for contributors in future activities and will be gradually released.

Users can now continue to follow the new quarterly SPACE ID Voyage series activities. This series is a loyalty program specifically for the community and is only available for community use. SPACE ID launched a series of activities on Galxe on December 16, 2022, to reward all core loyal users with non-transferable Voyage NFTs.

The first season activity "Prime" requires users to follow the official Twitter, enter the Discord channel, and obtain the corresponding identity, guiding users to set up a wallet address with the domain Primary Name. The second season activity "Legacy" guides users to purchase or redeem a SPACE ID gift card at least once.

According to official information, the third season activity "Awakening" started in January. This season brings new challenges, more rewards, and more opportunities to explore SPACE ID. To participate in SPACE ID Voyage, users must register a .bnb or .arb domain and set up a Primary Name on the SPACE ID official website.

Additionally, users need to display their .bnb domain name in their personal Twitter nickname. The displayed domain does not have to match exactly with the .bnb domain held, as long as it includes .bnb (prefixes and suffixes are allowed). For example, a Twitter profile name like "Allen | 12345.bnb" is valid. The third season is currently ongoing, and users can check the participation link in the SPACE ID official channel to compete for subsequent ID airdrops. Currently, the first season voyage activities have all ended, and users can follow the SPACE ID official channel for new season activities to compete for subsequent ID airdrops.

Conclusion

According to SPACE ID's plan, the SID Launchpad for Custom TLD Domain Names will be launched in the second quarter of 2023, allowing the community to easily build and launch custom TLDs. It will launch multi-chain domain infrastructure to provide multi-chain support for domains. Additionally, SPACE ID DAO will be released.

In the third quarter of 2023, the ID token will be implemented as a payment currency on SPACE ID, launching a domain NFT gated merchandise store, providing personalized products specifically for SPACE ID domain holders, and initiating a developer grant program to establish and further expand the ecosystem. In the fourth quarter of 2023, the ID token staking feature will be launched, allowing stakers to receive domain discounts and transaction fee discounts, and SPACE ID identifiers (colon domains) will be released, representing all identities and multi-chain addresses.

Based on the total trading volume, registration numbers, and comprehensive comparison with ENS domains, SPACE ID domains are approximately 4.9 times lower. This is largely due to the legitimacy and high consensus of ENS domains, but the relatively low number of three-character registered domains and the high proportion of five-character domains indicate that many users registered SPACE ID domains primarily for the expectation of airdrops, with relatively few users registering out of consensus speculation or actual use.

According to official operational progress, SPACE ID is continuously improving the consensus and usage demand for its domains. According to data disclosed in Binance's research report, SPACE ID's .bnb domain service has successfully integrated with over 100 projects and protocols (including BscScan and Trust Wallet).

At the same time, on February 1, 2023, SPACE ID plans to launch the upgraded version SPACE ID 2.0. SPACE ID 2.0 provides a one-stop Web3 domain and identity platform for discovering, registering, trading, and managing Web3 domains. The official website also shows that SPACE ID aggregates ENS domains, arb domains, and bnb domains. Additionally, SPACE ID 2.0 includes a Web3 domain SDK and API for cross-blockchain developers and will launch multi-chain domain services to support more blockchains. It is evident that it aims to break the existing pattern and establish itself as a core force in the Web3 domain platform.

Given that ENS domains currently do not have multi-chain plans, SPACE ID integrates multiple EVM chains and L2 ecosystems to build domain services, occupying areas that ENS domains have not touched. From a business model perspective, this may be a more advantageous choice. As for how far SPACE ID's domain and platform landscape can expand and whether it truly meets market demand, further observation is needed.