Loop Games is a gaming company which produced games that reached millions of players worldwide. Their games were downloaded more than 100 million over Google Play & App Store. They exited their games Match 3D and Match Tile 3D to the American technology giant Applovin. They brought their expertise in the field and created Pethereum which is a Free-to-Play and Play-to-Earn metaverse. Players can collect NFT pets by playing mobile games and utility tokens to enhance their in-game experience. The decisions about Pethereum will be made by a DAO governed by Pethereans.
Challenge
Finding the legal balance and navigating in the grey blockchain space is crucial. Play-to-earn models are eager to end up in Ponzi schemes. Pethereum has the potential to become one of the biggest play-to-earn metaverses which means they will have Pethereans from different parts of the world. As they are growing exponentially, they wanted to ensure their tokenomics is compliant with several jurisdictions around the world. In order to create a safe gaming environment with a stable economy, find a legal team who can just not evaluate the case from different angles but also joined the team to craft the details.
Solution
We joined the team as one of the advisors. We deep-dived into play-to-earn models including but not limited to approaches and insights of regulators, compliance issues faced in gaming and blockchain ecosystems in different jurisdictions, and case law which are accessible. We crafted the tokenomics, in-game economy, and gaming mechanics to comply with several securities laws all around the world. We analyzed and mitigated several risks to reflect their free-to-play and play-to-earn nature.
Impact
Pethereum team focused on scaling the community and building the metaverse while we are handling the legal aspects. They differentiated themselves from the Ponzi schemes and their tokens may not face security labels. Their $PETH tokens will freely circulate in the secondary market. Happy Pethereans, happy Pethereum, happy Vircon Legal!