This is quite possibly a non-starter based on the rules surrounding how Arcade Games within Android & App work.
Basic premise is that similar to “Pachinko” model: In Japan gambling is illegal, however under the law, pachinko balls won from games cannot be exchanged directly for money in the parlor, nor can they be removed from the premises or exchanged with other parlors; however, they can be legally traded to the parlor for so-called “special prize” tokens (特殊景品 tokushu keihin ), which are then legally “sold” for cash to a separate vendor located off-premises.
Leverage premise and adopt to arcade style games located within restrictive environments such as Android & iOS
User Journey:
Player Buys NFT token in Arcade (via an in game purchase model) these tokens provide player access to various games in the arcade.
Player Wins NFT token for completing various levels in game, these token reflect to a wallet which can be used to pay more games OR…
Player sends NFT token to external site outside of game environment
Sole purpose of external site is to transfer NFT token to Flow token
Redeemed Flow token is then able to be accepted at various exchanges for conversion to fiat or crypto.
I’d suggest moreso then the arcade itself, the Idea to flush out the marketplace initially, which can then be integrated by various game developers
If you have experience in App Store submissions and game builds it’d be great to hear from you.
While, I like the overall premise of the idea, I believe that at one point you or one of the third parties that implement said process, would get a legal problems.
I would Roham Gharegozlou (CEO of Dapper Labs):
this is not legal advice but here are some rough rules of thumb:
NFTs are usually safe – if they look more like trading cards or beanie babies it’s much safer than FTs
FTs are usually safe from a securities perspective if there’s no way for people to profit from them – for example infinite supply tokens or stablecoins - but stablecoins are subject to payments law so you have to watch out that if you ever have custody over private keys that control FTs you need to pay attention to KYC/AML laws and regulations
FTs that do have possibility of profit must have utility / functionality but as Max said, that’s not enough to mean you’re in the clear by any means – it’s a difficult but very important needle to thread. The framework you can use to guide yourself is “can i as the creator of the token control its value” – if the answer is yes, it’s probably a security
ABOVE IS NOT LEGAL ADVICE #IANAL#DYOR and all the other disclaimers
Nothing stops me, as a developer, from printing thousands of said NFTs and then trying to get profit by converting them to Flow Token and then to fiat
If I would approach, this specific idea I’d rather go with Facebook way - when you can onboard fiat to play different games, but you can’t convert it back.
Allow to spend “gold” earned in one game to buy items and game time in another, by utilizing interfaces and protocols and see where it’s going. But don’t focus from day one on the idea to make a game into “profit machine”…
The blockchain will allow other developers to build around Gold ecosystem. You know if Zinga makes a game and you put your money in - you (might) utilize that gold only in Zinga’s games.
With blockchain - anyone can participate as long as they use Gold interfaces to create their contract.
This allows developers to participate in a bigger project and utilize all previously onboarded users without additional agreements, licensing, etc.
