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.
HOW DMARKET WORKS
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
We want to provide an opportunity for every gamer (DMarket user) in the• Transaction fees (no more than 5%);
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 ;
• 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.
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
PLEASE NOTE: CRYPTOGRAPHIC TOKENS REFERRED TO IN THIS WHITE
PAPER ARE CRYPTOGRAPHIC TOKENS ON A LAUNCHED BLOCKCHAIN THAT
ADOPTS DMarket.IO SOFTWARE. THEY ARE NOT THE ERC-20-COMPATIBLE
TOKENS BEING DISTRIBUTED ON THE ETHEREUM BLOCKCHAIN IN
CONNECTION WITH THE DMarket TOKEN DISTRIBUTION.
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
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.
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.
The DMarket idea birth
DMarket security audit and product launch
API integration in 100 games with 10M users, in-game items value exceeding $2B
Brand awareness and Token Sale Phase #1
Market research and integration meetings with game developers
DMarket Alpha (testnet), Token Sale Phase #2, Token emission, DMarket Token listing
API integration in 10 games with 1M users, in-game items value exceeding $200M
API integration in 2000 games with 100M users, in-game items value exceeding $40B
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.