Deep Dive
1. DAO Revenue Mechanics (Bullish Impact)
Overview:
SPACE ID allocates 50% of platform revenue (domain sales, renewals, marketplace fees) to buy back and burn $ID tokens quarterly, reducing supply. The remaining 50% funds the DAO treasury, enabling community-driven ecosystem investments.
What this means:
Sustained domain adoption directly tightens $ID’s supply-demand balance. For example, if Q3 2025 revenue hits $5M, ~$2.5M would be burned, removing ~14.4M ID tokens at current prices. Historically, similar deflationary models (e.g., BNB burns) have correlated with price appreciation.
2. Token Unlock Risks (Bearish Impact)
Overview:
A $12M token unlock occurred in June 2025 as part of pre-set vesting schedules for early investors and core teams. With 54.4% of the 2B total supply still locked (Tokenomics), future unlocks could pressure prices if demand doesn’t offset dilution.
What this means:
The June unlock added ~69M ID tokens (6.3% of circulating supply). If released during low-volume periods, this could exacerbate sell-side pressure. Monitoring unlock schedules (e.g., Seed Sale tokens vesting until 2026) is critical for anticipating liquidity shocks.
3. Multichain Expansion vs. Competition (Mixed Impact)
Overview:
SPACE ID supports 24+ chains (BNB, Arbitrum, Ethereum) and 200+ dApp integrations, but competes with Ethereum Name Service (ENS) in key areas like wallet interoperability. Recent partnerships (e.g., Enkrypt’s Payment ID integration) showcase utility but face scalability tests.
What this means:
Dominance in emerging chains (e.g., Gravity, Taiko) could offset slower Ethereum adoption. However, ENS’s first-mover advantage and Ethereum’s Layer-2 growth pose long-term challenges. Success hinges on capturing >10% of the 82M+ Ethereum wallet market.
Conclusion
SPACE ID’s price trajectory balances deflationary tokenomics against vesting-related dilution, with multichain adoption as the swing factor. The DAO’s revenue-sharing mechanism offers structural support, but unlocks and ENS rivalry require vigilance. Can SPACE ID sustain its 15% monthly user growth to offset future unlocks?