SIP-26: NFT Collection Management for The Sandbox DAO

Voting ended 13 days agoSucceeded

TL;DR

What

Mandate a team led by Brian Beccafico (aka Arthemort) with Joséphine Louis and Kim Departe to manage The Sandbox DAO’s NFT collection (~1,100 assets, ~1,000 ETH). Their mission: strategic liquidation, reinvestment, and transformation into a curated, diversified, and revenue-generating art collection.

Why

The collection is underutilized, concentrated in risky assets (mostly Yuga Labs PFPs), and lacks strategic oversight. Without intervention, its value could depreciate significantly. Active management can generate income, reduce risk, and enhance its utility and cultural relevance.

How

The team will execute a 12-month plan: conduct valuations, liquidate assets, acquire new ones, and issue quarterly reports. They pledge to deliver 100K$/quarter to the DAO treasury. The rest of the funds from sales will be used to curate a meaningful long-term collection.

When

4-quarter project starting upon SIP approval, April 30th. Payments to the team are tied to execution and quarterly report.

Who

A trio of seasoned professionals in the Web3 art world, with curatorial, advisory, and NFT marketplace experience, including past partnerships with The Sandbox and major institutions like Sotheby’s.

Council Recommendation

Positive

SIP Details

Problem Description

The Sandbox DAO currently holds over 1100 NFTs in its treasury, with an estimated liquid market value exceeding 1,000 ETH (~$2M as of April 2nd 2025). More of these assets were transferred to the DAO wallet in February 2025 and represent a curated subset of a broader 16,000-NFT collection (still 20-70 low-value NFTs pending to be transferred)

However, this collection is currently underutilized and faces three key issues:

Asset Inactivity: NFTs are sitting idle with no active strategy for curation, liquidation, or value extraction. Without action, the assets may continue to depreciate, especially in a volatile NFT market when they could instead be actively managed to generate much-needed revenue for the treasury.
Value Concentration Risk: approximately 80% of the collection’s total value is concentrated in just 200 NFTs, largely from Yuga Labs projects. This creates vulnerability, especially given Yuga Labs’ lack of direct affiliation with The Sandbox ecosystem.
Lack of Diversification: 99% of the collection consists of PFP (profile picture) collectibles, limiting its cultural, functional, and financial utility. There is little representation of voxel art, gaming items, spatial designs, or artists native to The Sandbox ecosystem.

Without a structured management approach, the DAO risks missing both financial returns and cultural impact.

Solution Proposed

We’d like to offer a 12-month service to steward the market making strategy of The Sandbox DAO’s NFT collection.

To fully unlock both the current and future value of the DAO’s NFT collection, the collection must be transitioned from a passive holding to an actively managed portfolio. Our team will lead this process by implementing a structured, transparent strategy focused on three core pillars: value preservation, revenue generation, and cultural relevance.

What we will do

Actively manage the collection with a dedicated team able to respond to market shifts and opportunities in real-time.
Replace passive holding with a proactive strategy focused on:
- NFT liquidation
- Targeted acquisitions
- Strategic reallocation to ensure a steady revenue stream and a more sustainable long-term approach.
Address value concentration, with over 99% of the collection currently tied to PFP collectibles (mainly Yuga Labs) by diversifying into more meaningful and ecosystem-relevant assets.

Financial Commitment to the DAO

Our strategy ensures that the collection directly benefits the DAO. We commit to transferring $100,000 worth of ETH to the DAO treasury each quarter. The rest of the extracted fund from ventilated liquidation will be reinvested to:

curate a streamlined, high-quality Art collection
that is legible, culturally meaningful
manageable through community vote.

Art Direction criteria

Unique artworks (1/1), unique works from a series (1/1/X) and editions.
Artworks by living and deceased Web 3 native artists and recognized digital artists.
Artworks valued at over 1 ETH
Artworks that resonate with The Sandbox's corporate spirit and culture, including a dominant retro gaming theme, Internet culture (code, development) and gaming (avatar, wearable, spatial design) with voxel aesthetics, pixel art, glitch art, conceptual architectural explorations.

Scope of Work & Strategic Framework

Our plan revolves around data-driven decision-making, market intelligence, and proactive execution to unlock the full potential of the DAO’s collection. Below is the structured approach we will take:

1. Comprehensive Market Research & Valuation

Conduct a multi-horizon valuation of the collection, assessing short, mid, and long-term asset performance.
Develop and maintain a catalog dashboard to provide real-time visibility into the collection’s value and movements.
Regularly estimate and update the list of assets optimal for liquidation, ensuring that underperforming or redundant assets are identified early.

2. Liquidation Strategy & Execution

Implement a structured sale ventilation strategy, ensuring listings and bids are well-timed to maximize value while avoiding market saturation.
Facilitate private deals and consignment agreements, leveraging our extensive network to secure advantageous off-market transactions.
Utilize loan mechanisms and explore alternative financial strategies to generate liquidity without unnecessary asset sales.
Actively manage live listings on marketplaces, adapting to short-term market opportunities for maximum returns.

3. Acquisition & Portfolio Rebalancing

Identify and secure private deals for high-value assets to diversify the collection.
Implement a targeted acquisition strategy, making collection-wide offers and participating in live bidding to secure blue-chip NFTs.
Commission exclusive works from artists to enhance the collection with unique and strategic additions.

4. Transparent Reporting & Community Engagement

Hold regular AMA sessions to ensure open communication with the community.
Maintain an active presence in DAO discussions on Discord and forums, keeping members informed and involved.
Provide detailed quarterly reports, including a reporting deck with insights on sales, acquisitions, and strategy adjustments.
Share next-quarter strategic priorities, outlining upcoming actions and goals.

5. DAO Integration & Long-Term Framework

Establish a structured listing and bidding framework in collaboration with The Sandbox DAO team to ensure a smooth and efficient execution process.
Define short, mid, and long-term sell targets based on data-driven market assessments.
Leverage all available financial tools, including loaning, swaps, and structured deal-making, to maximize asset utility.
Continuously rethink the collection’s positioning and orientation, ensuring it aligns with the evolving Web3 landscape.

By implementing this comprehensive approach, we will unlock liquidity, enhance diversification, and ensure the DAO’s collection is actively working to generate value rather than sitting idle. This framework not only secures immediate financial benefits but also paves the way for long-term sustainability, ensuring that The Sandbox DAO remains a key player in the evolving NFT and digital art ecosystem

Benefits to The Sandbox Ecosystem

A collection management approach must be multi horizons and benefit the DAO in the short, mid and long term.

Short term: $100,000 worth of ETH to be transferred to the DAO treasury every quarter to fund community initiatives.
Mid term: Clear perspective on the state and valuation of the collection through our reporting in addition to ripping the benefit of having the capacity of making the most of Market trend or “Meta” (AI, L2,...)
Long-Term Vision: After one year, the collection will be condensed to a fraction (approximately 150-300 NFTs) of its current size. This reduction will significantly simplify future management, enabling the DAO to autonomously and efficiently arbitrate decisions, including voting on potential liquidations.

Cultural benefits

Define a coherent, long-term artistic direction
Diversify the collection by acquiring more varied and culturally relevant artworks.
Support independent artists and the Sandbox ecosystem.
Use the collection as leverage to promote Sandbox and attract designers.
Create a collection with a provenance to increase its value and prestige.