DMarket: a decentralized marketplace for turning every virtual item into a real commodity

  • DMarket is a global marketplace solution that turns every virtual item into real
    commodity. This paper discusses how we combine blockchain technologies and
    seven years of industry experience to open this multi-billion dollar market to
    the existing world economy. All that time people spend playing games on their
    mobile, PC, console or any other platform could finally be worth something.
    Essentially, DMarket is a new ecosystem where gamers, developers and
    entrepreneurs can efficiently and securely evaluate and trade virtual items.
    Thus, DMarket creates a new economy that joins with existing real-equity
    Early-access to the present paper was given to a number of individuals from
    the gaming industry and blockchain community. The authors deeply thank
    and acknowledge the comments and criticisms that have made the design of
    DMarket and this whitepaper as good as they are. Any faults that remain are,
    of course, the authors’.


    In real life, whether you are a lawyer, a crypto trader, a game developer or a
    miner, you spend time, experience, and even luck working to achieve something.
    This always results in new experience and/or real assets. And since it is yours,
    you can sell, gift it or just throw any asset away.
    Every day, 2.3 billion people play games on different platforms and devices,
    creating a gaming industry that in 2016 reached $100 billion and continues to
    boom. Only 4,000 pro gamers make a profit from the time and skill they spend
    gaming, including the trading of in-game items they accumulate. Just a couple
    of games accumulating only 6% of the global audience made a turnover of $3
    billion of in-game items. The rest of gamers are out of the market.
    The existing technologies cannot connect the many game universes and
    platforms together. As a result, players are stuck with their useless items,
    despite their time and effort. The growth of the gaming audience and the rise
    of the VR and AR markets has compounded this situation.
    Our team knows exactly what gamers want. Twelve months ago, we started
    trading virtual items in just a couple of games, and since then we have traded
    12 million virtual items. We know what the market needs and have already
    developed a unique platform that enables us satisfy that need.
    We are now developing a marketplace based on blockchain and smart
    contracts that enables one-click sale, exchange or evaluation of every virtual
    item between all games on any platform. The DMarket token will be the only
    currency on the platform, providing different options that affect every trade,
    exchange, fee and smart contract. By the end of this whitepaper, you will see
    how we are building a new online economy with the DMarket token. 2.3 billion
    gamers will finally be able to enter a global virtual item market. Using our
    API, every game developer will easily connect their game to DMarket and gain
    from the increased value, revenue and time spent in their games.

    Market & Industry

    • Video Games & VR

    There are approximately 2.3 billion gamers across the globe who are expected
    to generate revenue of $109 billion in 20171. This shows a $7.8 billion (7.8%)
    growth compared to 2016. Digital game revenue will account for about
    $95 billion (87%) of the global market.

    The most profitable segment is mobile, showing $46.1 billion (19%) and claiming
    42% of the market.
    According to the VR/AR Report Q3 20172, provided by Digi-Capital, the virtual
    reality and augmented reality (VR & AR) market is expected to reach up to
    $122 billion by 2021. Also, Digi-capital claims that the size of the gaming market
    is going to reach $200 billion over the next five years. Many companies, such as
    Microsoft Corp., Nintendo Co. Ltd, and Sony Corp., are launching their own VRcompatible
    console, and this competition accelerates the industry as a whole.


    current in-game items trading market

    To resolve the problem we are using decentralized database on
    blockchain. Using our API, every game developer can easily connect the
    game to DMarket. All operations are fast, secured and immediately


    For Gamers

    We want to provide an opportunity for every gamer (DMarket user) in the
    world to be able to evaluate their time, skills and luck. Gamers will be able to
    perform easy one-click buy/sale, exchange and evaluation of every possible
    game asset, item, skin, design or mod. To make this possible, each DMarket
    user will be provided with a wallet on a full-time basis. The wallet will preserve
    all data in our decentralized database and interact with users, utilizing smart
    contracts. The wallet will contain the next blockchain features:
    • Token crediting, during in-game items trading;
    • Token deduction, during the acquisition of in-game items ;

    • Transaction fees (no more than 5%);

    • In-game item crediting/deduction (during the in-game item transaction);
    • An influence on the platform development.
    All these processes will be automated, with the help of smart contracts
    technology. The Ethereum platform is an example of a fully-automated system.
    However, instead of DMarket tokens it executes ETH currency. Also, the platform
    uses any other tokens produced for Ethereum, instead of digital items.

    Items Unique Signature & History

    There is also an another, major aspect in collecting unique assets over time.
    Smart contract technology will ensure immutable records of one’s assets,
    adding a unique form of memorabilia that will create a natural game certification
    process, forever safe on the blockchain. Thus, digital goods become truly unique.
    They can adapt over time, develop a different value, creating a new realm of
    memorabilia and collectable assets, as well as a sense of history for users.
    This will also add a sense of history through digital goods globally.
    Let’s imagine, for example, a collection of seven unique items from the video
    games released in 2017. These items cannot be bought, but can still be traded.
    All owners (the winners and all subsequent owners) add to the assets’ history
    and may add long term value due to their own popularity.
    Players can collect items from all the championship finals. They can even collect
    all the armor used by their favorite esports star. These are just few instances
    where all the useful history data is securely stored on the blockchain.

    Influence on Market Development & Voting System

    A simple voting system and buying power will provide users with a real
    impact on the development of game assets, items and mods.
    The cross platform and cross-game items exchange will open new opportunities
    to discover and play games, while levering each user’s virtual gaming capital.

    For Developers

    We offer a unique win-win solution for game developers. DMarket’s developer’s
    API is a ready-to-use solution for giving value to any digital item, whether it is
    skins, gems or other items, as well as for the item monetization. First, libraries
    and integration will cover most popular engines, such as Unreal, Cry Engine
    and Unity 3D. That will open DMarket integration to most games on the market.
    Then, we will add custom engine support (the choice of the next engine will
    depend on the audience and community vote). Also, we are working on a mobile
    solution for iOS and Android.

    Early-access to the present paper was given to a number of developers from
    the gaming industry. Most of them showed intense interest in integrating the
    DMarket API into their games. Moreover, they have helped us compose the
    case studies and monetization methods for different platforms (PC, consoles,
    mobile), and expand our knowledge of in-game economics.
    We have a roadmap for single player PC games, multiplayer PC games, free to
    play PC games, pay-to-win mobile games, free-to-play mobile games, console
    single and multiplayer games. After studying all these monetization types, we
    have a win-win solution for every market.

    Value for game developers:

    • Marketing and general audience increase. All events, promo and general
    advertising of the platform will grow the number of supported games and
    • Increased general revenue. Publisher will receive the most of the fees from
    every exchange of his intellectual property – game items;
    • Increased LTV. Lifetime value will dramatically increase as gamers naturally
    spend more time in the game hunting for items. This will also ignite a sort
    of mining rush. Farming items could become the next big thing.
    • DMarket gives an opportunity to the gaming community to create in-game
    assets for any game stored on DMarket blockchain. New items, approved
    by publishers and voters, will bring an additional revenue to both, gamers
    and publishers, and enrich the gaming world with new and unique ingame
    assets. Many gamers and game fans will satisfy their ambitions
    in game content creation. Smart contracts and blockchain technology
    will guarantee the transparency of all transactions and automatically
    distributes profits within agreed terms along with all parties.

    Bounty program for the game developers and publishers

    We offer a special bounty program for the developers and publishers. Up to 18%
    of the DMarket funds attracted by token sale, will be spend to stimulate the
    developers and publishers to create the cost-effective and attractive business
    models for the in-game items stored on DMarket blockchain.
    Increased & Recurrent Revenues
    Our global decentralized marketplace will provide developers and decisionmakers
    with a recurrent market in which games can leverage additional years
    of existence. Combined with a strong in-game economy system (ex: EVE online
    virtual economy) and interesting new features, a single game franchise can
    hope for a lifetime recurrent return.
    With DMarket, game developers gain the most of the fees from every trade
    commission, and on each subsequent resale (when your game assets, items,
    mods are listed on the market). This solution aims to generate new ways of
    game monetization and increase lifetime value.
    The evolution of blockchain technology and smart contracts has enabled us to
    exclude any kind of fraud, whether it’s database hacking or account hacking. It
    is the key criterion in our decision to create DMarket.
    Also, the expansion of the tradables market will connect an ever-increasing
    number of potential customers and open a whole new world of marketing and

    DMarket Tokens

    After the Token sale period, all contributors will receive an ERC-20 exchangeable
    DMarket Token on the Ethereum network. After the launch of the main DMarket
    network, it will be exchanged 1-to-1 with a native DMarket coin.
    All digital goods are set with a DMarket coin value. Every in-game item will
    have a form of DMarket token in the DMarket coin wallet. All transactions of
    digital goods are made in DMarket coin, with DMarket coin-evaluated prices.
    Fees are paid in DMarket coins at asset creation and at asset exchange, using
    blockchain confirmations.
    In other words, the DMarket coin is the money that runs DMarket.
    DMarket Coin Functionality
    DMarket Tokens will be represented by DMarket coin. They will be used within
    the DMarket platform, but they won’t be limited by the platform in the future.
    DMarket coin can be used for the following purposes:
    • As a currency for buying or selling in-game items;
    • Delivering the sales commission to the owners of the rights on digital
    • Buying premium accounts for wholesale and individual sellers;
    • Purchasing BigData analytics.

    Digital goods

    Developers, designers and modders create digital goods. Each item will be
    marked as property of the company or the person who created it, identified
    by its own unique ID. Making it possible to track the item within the system
    and the blockchain. Optionally, with specific time-related features (premium,

    normal, used) or any other additional properties, which are defined in a smart
    contract. Technically, they will be DMarket blockchain network tokens.

    Digital Goods can vary from:
    • Game currency;
    • Games items/goods/services;
    • Game collectables;
    • Game trophies;
    • Skins, designs, animations, texture objects.
    DMarket tokens are created through the use of the API’s endpoint and a token
    factory, itself using a library submodule that can be optionally imported, thus
    giving great flexibility to asset creators.
    The token will represent consistent information stored on the blockchain, thus
    the unique ownership of one’s digital goods. The goods’ ownership, properties
    and state will live in the marketplace, outside of the game realm.
    The digital goods token will be transferable, meaning that it can be bought or
    sold or given from one owner to another. The assets will also bear their own
    evaluation methods that can be called in one click (or API request) with minimal
    Each transaction held in the DMarket has a main fee of 5% of the total amount
    of the transaction. At that most of the fee will be sent to the game developers
    whose items participated in the transaction. The remaining sum of the main fee
    will be obtained by the DMarket as of a reward for closing blocks of blockchains
    and creating smart contracts.

    Product Monetization & DMarket Coin Economy

    Monetization is achieved via a transaction fee (in DMarket coin) on each change
    of item ownership taking place on the DMarket.
    The fees minus the remittance rights of asset creators are the net profit.
    Thus, the marketplace is free to use and to browse. Fees will be paid with asset
    exchanges between users, or between users and merchants. The network will

    charge fees directly at the smart contract level in DMarket coin. Remittances
    will be awarded in DMarket coins, using smart contract technology.

    DMarket Coin Features

    DMarket Coin is the only currency for transmitting, buying, selling, and
    exchanging virtual goods within the DMarket marketplace. A certain amount
    of Dmarket Tokens will represent every virtual item, which will be connected to
    the marketplace wallet. Only the creators of the virtual items will be able to set
    prices for their goods.

    The creators will be able to:
    • Add and delete virtual goods;
    • Set the prices for their goods;
    • Add different general features to their goods (e.g. a virtual item can be
    labeled as premium, common or used);
    • Assign additional features which depend on the game itself;
    • Allow collective creation of goods.
    • Ban certain users from conducting transactions with the goods.
    As soon as the user receives access to his or her account, he or she will be able
    to deposit the amount of DMarket Tokens they need on their newly created
    You can buy DMarket Tokens during the two sales stages in several ways,
    including buying tokens for BTC and ETH. The first sales stage will be held on
    17-21 August 2017. During this period, users will be able to buy tokens for lower
    prices and receive bonuses. The second sales stage will start in November 2017.

    DMarket tokens as In-Game items

    Every in-game tradeable item will have a form of DMarket network token,
    connected to the main DMarket coin wallet and transferable and tradable
    through the network. A concept example could be taken from Ethereum
    network with ERC-20 tokens.

    Q1 2017

    The DMarket idea birth

    Q1 2018

    DMarket security audit and product launch

    Q2 2019

    API integration in 100 games with 10M users, in-game items value exceeding $2B

    Q3 2017

    Brand awareness and Token Sale Phase #1

    Q2 2017

    Market research and integration meetings with game developers

    Q4 2017 

    DMarket Alpha (testnet), Token Sale Phase #2, Token emission, DMarket Token listing

    Q2 2018 

    API integration in 10 games with 1M users, in-game items value exceeding $200M

    Q2 2020 

    API integration in 2000 games with 100M users, in-game items value exceeding $40B

    Token Sale

    Token Sale Phase #1

    Start date: 17th of August 2017 (12:00 PM NYC Time, UTC-4)
    End date: 21th of August 2017 (12:00 PM NYC Time, UTC-4)
    DMarket token sale cap (Phase #1): 50,000,000 DMarket tokens
    Minimal goal to start: 5,000,000 DMarket tokens
    Currency accepted: ETH, BTC
    Token exchange rate: 1 ETH = 1,000 DMarket tokens
    Amount of tokens per one person: unlimited
    Minimum transaction amount in Ethereum: 0.1 ETH
    Minimum transaction amount in Bitcoin: 100 DMarket tokens (The transaction
    rate is dependant on BTC rate fluctuations)
    Maximum transaction amount: unlimited
    Day 1: +10% bonus
    Day 2: +5% bonus
    Day 3: +3% bonus
    Day 4: no bonuses

    Token Sale Phase #2

    Start date: November 2017
    End date: November 2017
    DMarket token sale cap (Phase #2): hard cap
    Currency accepted: ETH, BTC, ETC, LTC, BCC
    Token exchange rate: 1 ETH = 750 DMarket tokens
    Amount of tokens per one person: limited
    Minimum transaction amount in Ethereum: 0.1 ETH
    Minimum transaction amount in Bitcoin: 100 DMarket tokens (The transaction
    rate is dependant on BTC rate fluctuations)
    Maximum transaction amount: limited

    Day 1: +5% bonus
    Day 2: no bonuses
    After the token sale is closed, 10% of the total token amount sold are issued and
    reserved for DMarket’s core activities, and 5% is reserved for DMarket advisory
    board and partners. The DMarket Tokens will be sent to the User’s personal
    respective cryptocurrency wallet by the end of DMarket Tokens Sale phase #2.


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