How to write a whitepaper for an NFT game?

Maciej Zieliński

10 Jul 2022
How to write a whitepaper for an NFT game?

If you've ever wanted to learn more about how to write a whitepaper for an NFT game, you're in the right place. In our article, we point out the process of creating a whitepaper for NFT games and the elements that play a key role in it. Read our guide and see what you need to keep in mind when creating your whitepaper for an NFT game. Here are some tips to make your NFT game whitepaper stand out from the competition. Here we go! 

Whitepaper for NFT game - basic information 

When creating a whitepaper for your NFT game, keep in mind that you are targeting both professionals and people who are just starting investing and gaming. If you want to make the best possible whitepaper, then put yourself in the customer's shoes and consider what questions come to mind first for the person who is potentially interested in your NFT game. Many years of observation of successful projects indicate that a professionally written whitepaper for an NFT game should answer the following questions:

  1. Introducing the game - in this regard, you should indicate what your game is about, what kind of ecosystem it has, whether it has a storyline, and what it is about. For example - a whitepaper for the game Axie Infinity will indicate that it is about collecting, raising, and selling animals. In contrast, the title "The Sandbox" will be characterized as a game in which you buy, rent, lease, or sell land. To determine what you want your game to be about and describe its outline in the first section of the whitepaper. 
  1. How does the project work? - in this area, it is useful to know the technicalities on which your game is based. Focus on presenting whether the game works based on the ERC-20 standard or ERC-721. In addition, specify in which blockchain technology you are creating your title. The most popular solutions are Flow, Ethereum, and Tezos. We wrote more about it - > here. 
  1. On what basis and in what quantities can you obtain NFT? - For example, the aforementioned Sandbox indicates that you get NFT through rent, lease, and sale of land. Axie Infinity specifies that you gain through breeding and selling animals. What does your NFT game offer? Indicate it here. 
  1. A description of the project's financing - if your NFT game obtained capital through crowdfunding, ICO, STO, or IDO, indicate it here. 
  1. Information about the team behind the NFT project - is an element that adds credibility. Describe who created the project, and what role they played in it. Familiar names attract much more interest. 
  1. Capital storage - specify on which wallets you can store NFT in your platform. This factor is interestingly described in the whitepaper of the game "Decentraland".

These are just the basics that you need to include in your whitepaper for NFT. Below we point out additional elements that will increase its credibility and help it succeed. 


As one of the main elements of NFT games, it should be described in an extremely precise way. In particular, the whitepaper should state what cryptocurrency the project supports and what type of tokens it uses. At the same time, it should be indicated whether the title was created first or, however, the token - this behavior shows the direction of the NFT game developer's thinking. If it was started with a token, in practice, the main goal is likely to be profit from the game. If, on the other hand, the game was created first and then the token, it means that the person respects his users, because he starts with an offer prepared for them - not under himself.  Another factor related to tokenomics is whether a title works with other games and cryptocurrency platforms. This can make financial assets much more liquid and practical than if they are limited to a single game. Keep in mind whether art assets, skins, tokens, etc. are readily available to third parties. If so - this will enable developers among the community to build their tools and experiences in a given title. As an example, consider the game Axie Infinity, which works this way. Economic openness makes it possible for players to monetize their concepts among other users, which also increases liquidity on a given platform.

If we talk about tokenomics, then we need to point out all the factors related to the monetization of the game in the context of Play to Earn:

  • How can the game be monetized?
  • In what time frame can this be achieved?
  • Are players entitled to rewards? If so, for what and in what amount?
  • How is payment for additional products made?
  • How can skins, NFTs, etc. be sold?

If there is (or was) an ICO, IEO, or IDO organized, indicate any elements related to this and resulting in the implementation of Soft Cup and hard Cup. This is an extremely important factor, as users need to know what we offer as part of the financing organization (if any). In addition, it will be necessary to specify the tokens and the method of their use. In particular, it should be determined whether they will be:

  • NFT tokens
  • Defi tokens
  • Governance Tokens
  • Security tokens
  • and what function they serve. 

Economic sustainability is another factor that should be included in the NFT. We need to indicate how the financing and trading of NFT data in the title will be kept alive. For example - in Ax Infinity it was indicated that battles between players will be updated regularly, there will be new objectives in the universe, and the value of the game is to be based on community and progression. An interesting idea is to indicate additional sources of funding that are not strictly related to the metaverse. In this case, you can refer to the implementation of additional sources of capital to the project by:

  • starting advertising,
  • finding sponsors,
  • selling physical goods related to the title,
  • organizing offline live events and building a community. 

Tokenomics must identify the flow of capital, its origin, present the value behind the title, and how it will continue to expand. If these factors are properly presented, we have half the success. 

NFT Whitepaper, and Infographics

There are many reasons to use infographics in an NFT whitepaper. Remember, NFTs are growing in popularity and offer endless business opportunities that not everyone understands after reading dry written text. To help explain why NFTs are important, you can use the following three types of infographics: 

  • Ecosystem, 
  • Sales, 
  • Risk

Infographics can help readers understand the complexity of NFTs and how they work. They also help inform how to sell them and make the best use of their financial resources. The most striking ones are those that visually present a lot of data. This makes them easier to understand. Below is a sample infographic from the game whitepaper.


It identifies information on the NFT supply of the game. You can find more information in this regard - > here. Another infographic describing the NFT breakdown of the game deals with the detailed settlement and is as follows: 


Infographics are more readable for people who are visual and do not analyze text. It is worth having them in your NFT game whitepaper. In addition, they can be easily shared, so your content reaches a large audience. It's a good idea to hire a designer with design skills to ensure your content looks professional and gets the right results. A good graphic designer should have a portfolio of his work, as well as a quality workshop. Also, pictograms have long been a popular and useful way to describe digital assets. You can use them to store everything from digital art to tweets. The idea behind NFT is to allow users to create and store such collections. The benefits of this technology and the solutions indicated above are obvious. 

Basic structural elements of a whitepaper for the NFT game 

To be successful, an NFT whitepaper must include the following features: 

  • Cover: A well-designed whitepaper should be easy to read. An interesting wrapper is meant to inspire confidence in potential contributors and showcase the team. Make sure your photos are high quality and have a consistent style throughout the document. You can use company photos to introduce the team.
  • To help subscribers find and buy NFT, the whitepaper should be made available through a secure platform. It should also include videos that can encourage subscribers to watch and learn more about the project. For example - Anxie Infinity has a video, which can be found here -> link.
  • While NFTs have many advantages, the biggest challenge facing this technology is fluidity. While the NFT whitepaper highlights the benefits of smart contracts, it should be noted that this market is still in its infancy, but is large enough to provide a good experience for developers and consumers. In addition, NFTs are more secure than digital disks, making them a better choice for cryptocurrencies and other non-physical assets.
  • Formatting: NFT documentation should be properly formatted. The reader must be able to easily understand the technical details. To this end, it is a good idea to add graphics and photos to make the document more attractive. Make sure that the visual and textual elements complement each other and do not distract from the message. As for charts, photos and dashboards, try to make them as easy to read as possible. 
  • Roadmap - with it you will present a vision for the development of your title. It will help to show, in a simplified way, where the project is going and answer basic questions about the timing of its implementation. The roadmap helps you identify the strategy of the game and coordinate the progress of its implementation. 
  • Team - presenting an official team of people shows that there are professionals behind a project who are not afraid to sign off on it. This is important because it builds trust among the community for a given NFT game. The more well-known names in the crypto industry and respected - the better type. 

Top 5 whitepapers for NFT games 

Currently, the most popular titles that make gaming NFT have great whitepapers. Check out the list below to see what a well-constructed whitepaper should look like in practice

Anxie Inifity

Anxie Inifity - > check out the whitepaper. This Whitepaper has in practice everything that a professionally drafted document must have. In it we can find: 

-thoroughly described gameplay, 

-methods of earning money from playing, 

-indication of the time we need to obtain capital, 

-in addition, the whole tokenomics of the game in the present and future time is brilliantly shown,

-The flow of capital is described, as well as the methods of securing it and the direction of business development. -> check out the whitepaper. First of all, this document is made extremely aesthetically pleasing. In addition, it coolly compares the NFT project to the traditional version of computer games. Another interesting concept is the indication that 1% of the commissions from transactions are donated to the expansion of the system and the game, which shows that the developers constantly want to develop it!

The Sandbox

The Sandbox -> check out the whitepaper. This is a heavily expanded whitepaper that has all the necessary elements in it. It includes a description of the gameplay, extremely detailed tokenomics, widely explained use of other technologies, and security of capital storage. In addition, several infographics are presented here, which simply describe the project. 


Decetraland -> check out the whitepaper. This whitepaper differs from the others in its simplicity of information. It conveys, in brief, the form of gameplay, settlement and tokenomics, and technology. It can be said that Decentraland is a summary of any well-written whitepaper of other, larger titles. 

Blankos Block

Blankos Block - > check out the whitepaper. This is a title that stands out from other games in terms of technology and documentation. Instead of a classic whitepaper, it has a separate blog that answers all the questions that a whitepaper should answer. You could say that it is a whitepaper in the form of a blog entry. The entry itself describes the technology of the game and even the hardware requirements to run it. There is also a description of tokenomics and answers to the most popular questions from players. It's a different look at the NFT Game market, as it departs from a fully formalized whitepaper, but presents the most important information about the project. 


Analyzing the above information, it can be concluded that the whitepaper is one of several key elements that are responsible for the success of the NFT project. For this reason, it is worth knowing its structure and understanding how to use the documentation in question. A properly drafted whitepaper has the tokenomics of the game well dissected. Users need to be fully aware of how to earn money playing a given title, how to sell the NFTs they acquire, and whether they can be used on different platforms. We point out at this point that our company has a team of specialists who have years of experience in creating whitepapers and will be happy to help you create a professional document. 


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Applying Game Theory in Token Design

Kajetan Olas

16 Apr 2024
Applying Game Theory in Token Design

Blockchain technology allows for aligning incentives among network participants by rewarding desired behaviors with tokens.
But there is more to it than simply fostering cooperation. Game theory allows for designing incentive-machines that can't be turned-off and resemble artificial life.

Emergent Optimization

Game theory provides a robust framework for analyzing strategic interactions with mathematical models, which is particularly useful in blockchain environments where multiple stakeholders interact within a set of predefined rules. By applying this framework to token systems, developers can design systems that influence the emergent behaviors of network participants. This ensures the stability and effectiveness of the ecosystem.

Bonding Curves

Bonding curves are tool used in token design to manage the relationship between price and token supply predictably. Essentially, a bonding curve is a mathematical curve that defines the price of a token based on its supply. The more tokens that are bought, the higher the price climbs, and vice versa. This model incentivizes early adoption and can help stabilize a token’s economy over time.

For example, a bonding curve could be designed to slow down price increases after certain milestones are reached, thus preventing speculative bubbles and encouraging steadier, more organic growth.

The Case of Bitcoin

Bitcoin’s design incorporates game theory, most notably through its consensus mechanism of proof-of-work (PoW). Its reward function optimizes for security (hashrate) by optimizing for maximum electricity usage. Therefore, optimizing for its legitimate goal of being secure also inadvertently optimizes for corrupting natural environment. Another emergent outcome of PoW is the creation of mining pools, that increase centralization.

The Paperclip Maximizer and the dangers of blockchain economy

What’s the connection between AI from the story and decentralized economies? Blockchain-based incentive systems also can’t be turned off. This means that if we design an incentive system that optimizes towards a wrong objective, we might be unable to change it. Bitcoin critics argue that the PoW consensus mechanism optimizes toward destroying planet Earth.

Layer 2 Solutions

Layer 2 solutions are built on the understanding that the security provided by this core kernel of certainty can be used as an anchor. This anchor then supports additional economic mechanisms that operate off the blockchain, extending the utility of public blockchains like Ethereum. These mechanisms include state channels, sidechains, or plasma, each offering a way to conduct transactions off-chain while still being able to refer back to the anchored security of the main chain if necessary.

Conceptual Example of State Channels

State channels allow participants to perform numerous transactions off-chain, with the blockchain serving as a backstop in case of disputes or malfeasance.

Consider two players, Alice and Bob, who want to play a game of tic-tac-toe with stakes in Ethereum. The naive approach would be to interact directly with a smart contract for every move, which would be slow and costly. Instead, they can use a state channel for their game.

  1. Opening the Channel: They start by deploying a "Judge" smart contract on Ethereum, which holds the 1 ETH wager. The contract knows the rules of the game and the identities of the players.
  2. Playing the Game: Alice and Bob play the game off-chain by signing each move as transactions, which are exchanged directly between them but not broadcast to the blockchain. Each transaction includes a nonce to ensure moves are kept in order.
  3. Closing the Channel: When the game ends, the final state (i.e., the sequence of moves) is sent to the Judge contract, which pays out the wager to the winner after confirming both parties agree on the outcome.

A threat stronger than the execution

If Bob tries to cheat by submitting an old state where he was winning, Alice can challenge this during a dispute period by submitting a newer signed state. The Judge contract can verify the authenticity and order of these states due to the nonces, ensuring the integrity of the game. Thus, the mere threat of execution (submitting the state to the blockchain and having the fraud exposed) secures the off-chain interactions.

Game Theory in Practice

Understanding the application of game theory within blockchain and token ecosystems requires a structured approach to analyzing how stakeholders interact, defining possible actions they can take, and understanding the causal relationships within the system. This structured analysis helps in creating effective strategies that ensure the system operates as intended.

Stakeholder Analysis

Identifying Stakeholders

The first step in applying game theory effectively is identifying all relevant stakeholders within the ecosystem. This includes direct participants such as users, miners, and developers but also external entities like regulators, potential attackers, and partner organizations. Understanding who the stakeholders are and what their interests and capabilities are is crucial for predicting how they might interact within the system.

Stakeholders in blockchain development for systems engineering

Assessing Incentives and Capabilities

Each stakeholder has different motivations and resources at their disposal. For instance, miners are motivated by block rewards and transaction fees, while users seek fast, secure, and cheap transactions. Clearly defining these incentives helps in predicting how changes to the system’s rules and parameters might influence their behaviors.

Defining Action Space

Possible Actions

The action space encompasses all possible decisions or strategies stakeholders can employ in response to the ecosystem's dynamics. For example, a miner might choose to increase computational power, a user might decide to hold or sell tokens, and a developer might propose changes to the protocol.

Artonomus, Github

Constraints and Opportunities

Understanding the constraints (such as economic costs, technological limitations, and regulatory frameworks) and opportunities (such as new technological advancements or changes in market demand) within which these actions take place is vital. This helps in modeling potential strategies stakeholders might adopt.

Artonomus, Github

Causal Relationships Diagram

Mapping Interactions

Creating a diagram that represents the causal relationships between different actions and outcomes within the ecosystem can illuminate how complex interactions unfold. This diagram helps in identifying which variables influence others and how they do so, making it easier to predict the outcomes of certain actions.

Artonomus, Github

Analyzing Impact

By examining the causal relationships, developers and system designers can identify critical leverage points where small changes could have significant impacts. This analysis is crucial for enhancing system stability and ensuring its efficiency.

Feedback Loops

Understanding feedback loops within a blockchain ecosystem is critical as they can significantly amplify or mitigate the effects of changes within the system. These loops can reinforce or counteract trends, leading to rapid growth or decline.

Reinforcing Loops

Reinforcing loops are feedback mechanisms that amplify the effects of a trend or action. For example, increased adoption of a blockchain platform can lead to more developers creating applications on it, which in turn leads to further adoption. This positive feedback loop can drive rapid growth and success.

Death Spiral

Conversely, a death spiral is a type of reinforcing loop that leads to negative outcomes. An example might be the increasing cost of transaction fees leading to decreased usage of the blockchain, which reduces the incentive for miners to secure the network, further decreasing system performance and user adoption. Identifying potential death spirals early is crucial for maintaining the ecosystem's health.

The Death Spiral: How Terra's Algorithmic Stablecoin Came Crashing Down
the-death-spiral-how-terras-algorithmic-stablecoin-came-crashing-down/, Forbes


The fundamental advantage of token-based systems is being able to reward desired behavior. To capitalize on that possibility, token engineers put careful attention into optimization and designing incentives for long-term growth.


  1. What does game theory contribute to blockchain token design?
    • Game theory optimizes blockchain ecosystems by structuring incentives that reward desired behavior.
  2. How do bonding curves apply game theory to improve token economics?
    • Bonding curves set token pricing that adjusts with supply changes, strategically incentivizing early purchases and penalizing speculation.
  3. What benefits do Layer 2 solutions provide in the context of game theory?
    • Layer 2 solutions leverage game theory, by creating systems where the threat of reporting fraudulent behavior ensures honest participation.

Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.


Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics


The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.


What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.