The Sandbox restructuring and Decentraland governance shifts

Animoca Brands takes control of The Sandbox

Animoca Brands controls The Sandbox after the company removed founders Sebastien Borget and Arthur Madrid from operational roles. This restructuring followed a valuation drop from $4 billion in 2022 to $1 billion in 2024. The company laid off more than 250 employees, which represents over 50% of its worldwide workforce. SAND token capitalization fell from $8 billion to $700 million, a 95% decline. Daily user activity also fell to a few hundred people, some of whom users suspect are bots. Animoca Brands now manages the project directly under CEO Robby Yung. The project shifts focus toward memecoin launchpads and community Web3 tools. The company’s digital asset advisory unit completed 24 token launches in FY2025, while the unit also engaged with over 20 token foundations to provide liquidity provisioning and node validation services. Animoca Brands reported $173 million in bookings for the fiscal year ending 31 December 2025, with $95 million coming from digital asset operating businesses. The company also holds $68 million in cash and stablecoin balances and $177 million in digital assets. Animoca Brands secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in February 2026. The company also received in-principle approval from the Abu Dhabi Global Market (ADGM) on 24 November 2025 to operate as a regulated Fund Manager.

Decentraland implements treasury diversification

Decentraland enters a phase of operational maturity through the establishment of a Council for the Decentraland DAO. This Council oversees the Executive Arm and manages the treasury to ensure the DAO maintains long-term stability and enough resources for future innovation. To reduce voter fatigue, the DAO delegates operational oversight to Regenesis Labs. Council members must be elected or dismissed via VP voting, which requires 6 million VP. The DAO aims to diversify 40 – 60% of its vested treasury holdings into stable and liquid assets. This diversification provides a 24-month operational runway for Regenesis Labs and other initiatives. Council members receive $1,000 per month in MANA for their commitment. The Council will consist of 5 doxxed members with expertise in strategic management, finance, creativity, and technology. The Council members must also approve and publish the Annual Strategy Plan and Budget proposed by the Executive Director while publishing regular reports on the status of operations and the treasury.

The current governance model requires VP holders to vote on every proposal, which leads to slow processes and voter fatigue. A veto governance proposal allows VP holders to block decisions misaligned with the DAO mission. If no quorum is reached, the Council’s decisions move forward as planned. The Council will supervise all actions to ensure alignment with the DAO mission and long-term sustainability. You should monitor how these governance changes impact user participation.

Digital twin growth in the Middle East

Construction projects in the Middle East use digital twins to manage complex infrastructure. Projects such as Saudi Arabia’s NEOM and Dubai’s Urban Master Plan require real-time digital replicas for resource management. These technologies help engineers predict equipment failures and optimize workflows. High initial investment costs for IoT sensors and data infrastructure create barriers for smaller firms. The industry requires skilled technicians and data scientists to manage large amounts of data. Digital twins facilitate collaboration among teams by using 3D models so all stakeholders can virtually inspect job sites. Developers simulate different regulatory scenarios during the planning phase to ensure compliance with local and international building codes. The technology helps plan for increasing populations in cities like Dubai throughout the GCC region. How will virtual worlds compete with these physical-world digital replicas?