Sleep

Sleeping increases your Blockhead's energy which makes your Blockhead move and work much faster. There are three different types of beds that can be crafted; a wooden bed, soft bed, and golden bed. Each increasing the rate of which your blockhead energy is regenerated, respectively. The cost of immediate sleep costs 20 Time Crystals. When the Blockhead is empty enough, he/she will collapse and sleep on the floor rather than the closest bed.

Effects
Sleeping in a bed also gives you a Game Center achievement.

When every player on a server sleeps, (or meditates), the time goes 20 times faster than normal.

Sleeping in any bed makes the bar golden, making it impossible to decrease over time.

The 4 Speeds of Sleeping
Sleeping on the floor will make you sleep x1 times faster.

Sleeping in a Wooden Bed increases the speed to x2.

Sleeping in a Soft Bed increases it to x5.

The Golden Bed, however sleeps very quickly with a speed of x25!

Trivia

 * When a Blockhead sleeps, his/her eyes are still open. This is possibly because the company forgot to add the close-their-eyes-while-sleeping effect.
 * The Golden Bed is the most common in servers or big worlds.