The Sandbox Adds KYC Verification to Staking
From now on, staking will require completing a KYC verification process in order to successfully stake $SAND and claim weekly rewards, with The Sandbox announcing that the change has been introduced in order to “enhance user security and compliance.”
The Sandbox has announced that from now on, users will need to complete a KYC verification process in order to be able to deposit $SAND for staking.
The announcement states that the change was introduced in an effort to improve user security and compliance. This means that if you want to stake tokens to claim weekly rewards, you’ll need to become a verified user. If you already have staked tokens but have not been verified, you still have the option to withdraw them. According to a report from Messari, a blockchain analytics firm, 123 million SAND is currently being staked, which amounts to 6.7% of circulating supply. The Q2 2023 report also shows that the daily average number of $SAND staked continued to increase 5% QoQ (quarter-on-quarter). Despite the increase, the amount of $SAND staked as a percentage of circulating supply actually fell by 2% QoQ.
In Q2, the report also shows that staking rewards dropped by 48% in $SAND and 57% in USD terms, with the distribution of $SAND from staking actually only being 0.2% of the new $SAND entering the market, which is an interesting stat that essentially shows how staking rewards likely have barely any effect on staking rewards.
It will be interesting to see how the new change affects the number of daily average $SAND staked in the months ahead, as likely not everyone will be willing to verify their identity for an on-chain protocol.