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Spacebar Q1 2026 Update

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Hello Explorers,

Q1 was a quarter of shipping. We're navigating a difficult market and managing runway carefully, but the team is heads-down and the product is moving. That matters to us, and we want it to be visible to you.

1/ Testnet is Live

Spacebar's testnet launched on Hyperliquid's HyperEVM testnet in March: https://testnet.spacebar.xyz/

It's currently in soft launch. A small group of users are actively exploring, mining, and testing the system in real conditions. If you'd like to try it yourself, you're welcome to jump in and connect a wallet to explore.

The first testnet version focuses on encompassing most of the building blocks for Spacebar to evolve. Spacebar now is distinctly divided into Core Zone, Outer Space, and Backspace.

  • Core Zone: Discovery hub where users browse, curate, and verify Hyperliquid ecosystem projects. Users will be able to collectively define what the Hyperliquid ecosystem looks like based on their curation and usage. In the next several quarters, we anticipate turning the Core Zone into a robust discovery engine for the Hyperliquid ecosystem.
  • Outer Space: Exploration layer where the default mission for users is to treasure hunt for Keys that are linked with governance structures. There are 12 keys to claim where owning a key allows the user to govern one of the discovery portals within the Core Zone. We have placed Mining that leads to token distribution and Capsules that allow users to find in-game items. Outer Space will continue to house games and entertainment.
  • Backspace: Personal profile page where users build their identity, assets, track their activity, and curate their favorite projects. When users add a project within their Backspace, some of the portals in the Core Zone change based on the collective choice of the users.

2/ Testnet HYPE Distribution and Ecosystem

We have received 10,000 testnet HYPE from the Hyperliquid foundation to distribute to our users. If you need testnet HYPE for gas fees, plug in a wallet to Spacebar and venture out to Outer Space and find a capsule. Our system will distribute 0.5 testHYPE when you claim your first item from a capsule.

As a sidenote, we realized Hyperliquid doesn't have a scanner for its testnet environment, so we built one for our internal purposes. We are considering deploying a public version.

3/ Operating Update

  • Team: 6 full-time, unchanged from last quarter
  • AI-Native Operations: Continues to be core to how we work. This quarter alone, the docs repository saw 132 commits covering feature specs, token economy, interactive UI prototypes, and bilingual documentation. AI doesn't replace judgment, but it lets a team of 6 move like a team of 20.

4/ What's Next: Q2 2026

Q2 is about converting Q1's architecture into live features, and continuing to learn from testnet users.

  • Squares: Community is the piece that makes everything else work. Squares give users a home inside Outer Space — a place to form groups, curate together, compete as a team, and eventually govern. We're starting with 12 Mock Squares on testnet to validate the model before committing to mainnet.
  • Star Sweepers: Our first playable game, returning from Blast where it generated 10M+ transactions. They're the primary driver of daily engagement and the reason users keep coming back to discover new things inside the ecosystem. We plan to launch a new Spacebar themed game every quarter and speed up production as AI evolves.
  • Shop: An onchain marketplace for in-game items (Bullets, Boosters, and more to come). It accepts USDC, USDT, fAIR, and HYPE. Users earn fAIR through Mining and Capsules, then spend it in the Shop, which flows back to the Vault. This is how the token economy stays balanced.
  • Community Feedback Loop: We're placing feedback portals next to every feature in the game. If a user just finished mining and has a thought, they should be able to share it right there. Starting with Google Forms, evolving into a built-in system with AI categorization and contributor rewards.
  • Core Zone Evolution: Moving from a static directory to an intelligent trust and discovery layer. Project Security Scores (A to F) with visual risk warnings on portals, transparent audit trails, and AI-automated monitoring for anomalies. On the discovery side, AI will scan for new projects automatically so that ecosystem growth doesn't depend on manual submissions.
  • Mining Refinements: Distance-based reward tiers, mine depletion, tutorial mines, and UX improvements based on what we're learning from live testnet data.
  • AI Integration: Treasure hunting within Outer Space can be very mundane. We are prioritizing a bot system that allows users to add an AI agent API to control the bot to help with treasure hunting.

With AI becoming a big part of our production, we realize that software production cost is becoming very cheap and accessible. It seems obvious that the next generation of contents will be driven by billions of prosumers with very limited playground for exposing their contents and products.

We won't pretend the environment is easy. Token markets are uncertain, runway is finite, and the path to mainnet requires us to keep making the right calls with limited resources. We don't know yet how every piece will come together — but we're still here, still shipping, and still motivated. Spacebar will continue to focus on onchain discovery and building a platform for communities in the tokenized economy.

Team AO Building Spacebar