Much of the negative sentiment is warranted. I feel the next “scam” lurking behind the next contract interaction, the next “Collaboration”, the next fraudulent twitter account, the next discord interaction…

This post was intended for Reddit’s r/gaming. I have a bad habit of typing away for 30minutes only to see my post removed for violating a rule on the server.

After making my case for the promise of “Play to Earn” (p2e) I wasn’t immediately surprised by its removal. “I’ll just make adjustments to the content”. However, the reason for its removal caught me by surprise.

r/gaming explicitly bans any mention of crypto or NFT’s and by convention, any discussion about p2e what-so-ever.

Following its removal, I messaged a moderator in the hopes I might clear up some confusion. The entire purpose of the post was to both educate, but lend an ear to the gaming community about their concerns.

No response as of the time of this post.

I do not believe r/gaming is demonstrating any “Bad Intent”. Why would they? I recognize their primary motivation is the safety of their community. After all, we can all agree web3 can be a financially dangerous place.

Nonetheless, I do believe the ban and instant removal of NFT/crypto content is likely to include certain falsehoods and misunderstandings, and ensures communication between the p2e and traditional gaming communities remains unproductive.

All said, I’ve included the text from the original post here in the hopes it contributes to productive conversation. (Including my opinions from the game developers perspective)

original post on r/gaming 8/14/2022

Hello all! Life-long gamer, and NFT collector here. The potential that this post is immediately down-voted to oblivion at the mere mention of "NFT" is not lost on me. I can only hope that the information I add here receives due consideration, and its message is given fair distribution.

As alluded, my primary concern is to address the apparent visceral distrust amongst gamers to blockchain gaming or "P2E" (play to earn). Many voice valid concerns and frankly, many more confidently demonstrate a lack of understanding. First, more about myself and my background in the NFT space. I am a nurse practitioner by training with 10 years experience in emergency medicine. My schedule has granted a great deal of free time to explore other interests, namely the NFT scene. I'm married with two dogs.

I'm a PERSON, not a robot. Also yes this is my account I have contributed to for over a decade. I do not work for any blockchain gaming companies, and this post is on my own personal volition with no motivation other than my own curiosity.

1: What is a "Non-fungible-token" (NFT)? If I were typing this post in a Microsoft Word document, I may send the document to a friend. Now, I have the document, and my friend has the document. If instead, the document was an NFT (instead of .doc or .pdf), I send the document to a friend and she now has the document and I do not because I sent it to her. This is essentially what an NFT is. It is a discrete digital item that exists on the blockchain, cannot be replicated, and may only exist in one location at a time. The blockchain is simply a ledger that keeps up with were the item is, and where it goes when it moves.

2: Are NFT's a scam? This is where many of the most vocal opponents of NFT's flex their inner "Dunning Kruger". The statement, "NFT's are scams" is very similar to "Websites are scams". It misses the point entirely. Do scammers use websites to scam people? Yes they do. Do scammers use NFT's to scam people? Yes they do. But neither of these instances are a commentary on the technology itself, which is agnostic and lacks free will. Anyone who tells you "NFT's are a scam" is confidently demonstrating a lack of understanding of the technology.

3: Do I "Own" the NFT's in my wallet? Simply put, in many cases the jury is out on this one. However, many of the most successful examples of NFT projects including "Bored Ape Yacht Club", "Gutter Cat Gang", "Doodles", "CloneX", "CryptoMories" ect have made every effort to communicate that indeed, whomever possesses the NFT is the owner outright including worldwide commercial use licensing (This is actually a very innovative feature). Most others however like the recent Nickelodeon drop of "Rug Rats" and "Hey Arnold" firmly retain IP rights associated with the project, but possessing one is no different from "Owning" a RugRats toy (which most toy owners would consider as "owning" the toy).

4: What is Blockchain (p2e,NFT gaming)? Many of you are familiar with CSGO and the "Skins" market. Skins usable in the game are bought and sold on an open market in $USD. Similar trading of digital items has existed other platforms like Runescape, Eve online, World of Warcraft.

The trouble is, the trade of items or accounts is explicitly forbidden in the terms and conditions of these titles, and if caught, players face a lifetime ban from the game. The other issue faced by those trading digital assets is a matter of "Trust". Buyer and seller must each trust that the other will deliver exactly what they promise. Buyer may send cash, and seller never sends the account. Seller may send the account, but buyer never sends the cash.

The transaction creates a prisoner's dilemma of who sends first. (I recommend everyone follow the terms and conditions provided with any game you play and only intend to illustrate the shortcomings of trading digital assets.) Back to CSGO. The buying and selling of skins take place on a dedicated market place that brokers the deal between buyer and seller using cash. and is a great example of how digital items may migrate from one account to another with no blockchain needed. However, these items remain locked within STEAMS ecosystem.

They maintain a monopoly over any fees they may choose to levy. They my discontinue the item and remove it. They may halt the trading of skins entirely. (In fact, VALVE have famously rejected the integration of blockchain gaming outright). Yes there are "Trading sites" for skins that seem to exist independent from STEAM, but this is an illusion.

Blockchain gaming at its very core is essentially the same, only these assets are not locked within a specific platform and are free to be traded on any marketplace that operates using the same underlying chain that the NFT's metadata is located on. No one is in control of the movement of this asset. The market is orders of magnitude greater in size and the entire trading history of the item is available to anyone.

5: Why is the blockchain better than trading skins on STEAM? This is where I throw a curve-ball. The difference between CSGO skins trading and the same trading on blockchain is subtle however, the implications of tokenized game items NOT locked in the game’s ecosystem are enormous, and stand to challenge what it means to be "Money".

The promise of blockchain gaming is much less about "NFT's" as "In game economies". It would be simple for me to run off on the numerous legal complexities involving securities, taxable income ect related to blockchain games but, I'll start by saying "It's complicated".

Players of Skyrim, WoW, Eve online ect. are familiar with grinding for "Gold", "Credits" ect. in game that may then be used to buy in game items. Imagine if you will a gaming world where the in game currency isn't locked on the game but instead is located in your Meta-Mask crypto wallet?

Lets go a step farther. Let’s say you operate a mining rig in Eve online. You spend hours occasionally moving from one Asteroid to the next busting them up and transporting them back to base in your Orca. What if instead of the materials you mined in game weren't locked within the ecosystem, but instead in your possession even if the game isn't running?

Remember the "Account" trading we talked about? The "Items" trading? Blockchain gaming companies ARE NOT encouraging nor endorsing the trade of in game blockchain back items in their games for cash, but if you do, that's a decision the player is making and the game company can't stop them.

It all boils down to shifting the onus of control and responsibility of the movement of in game digital assets to players, and if a buzzing secondary market for in game items spins up, the game developers didn't do it, the players chose to do it, and Blockchain makes it possible.

Passing the buck? I do not personally view it this way, and here's why: What must be understood is the REASON those terms and conditions that have always prevented the open buying and selling of accounts, or items pinned to those accounts. The reason is largely related to the Securities and Exchange Commission, as well as Banking regulations.

In what I believe to be an overreach, game developers enforce a ban on trading of accounts on secondary markets so as to eliminate any and all consideration by these regulatory committees that accounts and in game items are behaving like SECURITIES being traded "Peer to peer" (player to player) in a fashion resembling the "Stock Market" WITH A FLOW OF CASH.

The “Cash” part is important because this is the feature that distinguishes the items from the "Auction Houses" that exist backed by "Worthless" in game currencies.

The application of Blockchain tech has the effect of shifting the onus of responsibility for buying and selling in game items off game and on third party exchanges or directly peer to peer to the players. Game developers deny monetary value of these items, including the currencies in game, and utilize blockchain as a means of tokenizing collectables, decentralizing the data, automating the flow of in game inventories and allowing peer to peer exchange of items if wanted....

If the players run off and create cash backed economies with the items, "That’s on them not us".

The regulatory situation changes. Players pay their taxes on money they earn Operating their guild, pay their taxes and the game developers never condone the practice.

Final thought: What I described above is massively simplified. The truth is, there are numerous unknowns in how this will all play out, numerous future regulations that may affect how it all works, numerous questions pertaining to IP and Securities. 5: Does this mean the games are Pay to win?.... Some I'm sure. But I find it unlikely that game devs aren't aware of the death blow to their title should that become apparent. It's a game-to-game specific question and most blockchain games on the horizon have not yet released. So that's my take on p2e gaming. Lots of pros, lots of cons, but the most important thing I hope to communicate is there is a potential to create a new age of "Pro Gaming", and "NFT's are a scam" is an inherently poor take on what's actually going on.

Should I launch into specific definitions, the cultural history follows by convention. I am sleepy, but I’ll give it a whirl and see where we end up.

As you’ve likely suspected: Yes it is short for “Degenerate”. Why "Degenerate"? It’s is a bit of tongue in cheek self deprecation that denotes a growing group of like minded people who engage in frequent high risk/reward activities, typically within the crypto/NFT space, that is not unlike the behavior of a degenerate gambler. Self identified “Degens” typically engage in the buying, selling, and yield farming in the NFT/crypto/options/equities market with the sole purpose of getting rich as soon as possible.

Often, groups gather in low key Discord servers to coordinate "Pump and Dump" schemes on low float markets, before pulling the rug from beneath unsuspecting civilians after folks who were not in the know catch wind of the massive influx of buyers and believe they might as well ride the wave themselves. These poor bastards unknowingly offer up the cash to buy out the conspirators who coordinated the movement to begin with. (This is a rather extreme case that I personally find detestable).

***Pardon me a moment dear reader: ***

“HEY!” “Mr. HIGH AND MIGHTY BROKER PERSON! Yeeees you… with your GRAND sense of free market morality. Out there every day, ensuring market-caps reflect what you believe the company is worth I’m sure…

The “Pump and Dump” is older than us both combined. It’s been done in backrooms for at least 100 years probably thousands. It’s even detailed in the pre-depression era Edwin Lefèvre classic: "Reminiscences of a Stock Operator". So, calm down. It isn't new. The only difference is, it’s retail pulling the strings.

Anywho, "Degen" activity is a THING I've witnessed since the first person that didn't hold bitcoin found out his buddy made millions on magic internet money.

The timing was perfect really: Disillusioned millennials fresh out of college (or not) with a liberal arts degree, a mountain of student loan debt, the housing market collapsing around them, homes they can't afford and worse yet: No one seems to give a shit about art any more. So, they work their 60 hours a week as a first layer tech support operator, then go back to their parents basement wondering how much longer they can stand to deal with.... "People".

It’s complicated, but our old pal Wojak always seems to embody the sentiment:

So, there's money to be made in crypto. Robinhood gamifies the equity markets (and manipulates them) and before we know it, retail traders are a "Problem". They’re "Unsophisticated", "Gamblers", and this here.. HAHA… This one her-eeeHEHE! HAHA!

Ahem…

This one is RICH: "MARKET MANIPULATORS(!)”

mind-blown emoji*

Anywho, I've never considered myself a "Degen" (I am DAMN sure an "Ape", but that is another story). I have however taken my fair share of high risk trades. Actually, about 30 minutes ago, I took a position in a VERY high risk trade, which prompted me to hop on Linked-In and maybe TEACH about NFT's, and possibly bridge a cultural/generational gap with establishment finance.

Occasionally, an NFT project will perform something called a "Stealth-Drop". The stealth drop is essentially a sudden, surprise NFT drop with no previous marketing or promotion. Typically there is some draw that gives it legs such as: "Beeple here!, I just dropped 1000 NFT's and they're all free". There is a sudden RUSH of minters (buyers) to the platform where it sells out in less than a minute, and gas is over 500 so you still make a $300 sacrifice to the ETH gods.

It’s a great way to create sudden demand for a thing no-one has had time to think about. Many wonderful projects with self sacrificing dev teams have opted for the stealth drop and have built successful utility and communities ever since.

Unfortunately, it’s also a great way for nefarious actors to take advantage of unsuspecting collectors.

Understanding how quickly many collectors act in these situations, scammers will write malicious contracts that do not execute the transaction as expected. The buyer rushes in to claim as many as they can within their GAS budget, and often don’t take the time to review the transaction or the contract itself. Little do they know, the contract authorizes access to the buyer’s wallet where automated bots withdraw all ETH and NFT’s from the address.

Buyers face a very difficult situation during the stealth mint. If they hesitate too long, they leave empty handed. If they run blindly into the mint and snag a free NFT from a popular artist? It’s a potential payday of thousands, even tens of thousands of dollars, keep their favorites.

What would YOU do?

It depends on your risk tolerance vs what you stand to gain.

Fortunately, with a sufficient appetite for risk, you CAN successfully engage in these stealth mints SAFELY, quickly and “Degen” like a pro!

FOR THE LOVE. The following is for INFOTAINMENT PURPOSES ONLY

How to Degen the Stealth Drop

To begin, EVERYONE should have a “Dummy Wallet”. This is a normal Metamask account, that happens to be completely empty. This is your “High risk mint” wallet. The one you connect to a mint site in which you have no substantial evidence one way or the other if you are about to be scammed. This way, if it is indeed a scam, there’s nothing in the account to seal.

Next: Transfer the amount of crypto into the wallet that you anticipate will cover gas fees, and is also AN AMOUNT THAT YOU CAN AFFORD TO LOSE. This is the “Risk” part. The amount of crypto you transfer into this dummy account is the amount of risk you are taking on to engage this mint. If you are scammed, it’s gone. And, you’re okay with this, because you understood the RISK, and the potential reward was worth being scammed out of all of it. VERY IMPORTANT THAT THIS IS CONCEPT OF RISK/REWARD IS UNDERSTOOD, AND ACCEPTED AS REALITY.

Now, STOP. Take a deep breath, and assess the immediately apparent facts on the ground. Who are these developers? This is a question you may or may not answer in an expedient fashion, but sometimes you may find the account “Claims” to be someone well respected in the community, but on brief inspection, they have 11 followers.

Next, try to make a quick scan of their twitter account. Are they followed by folks you follow? Folks you respect?

Next, smash that discord link and head over to general chat. What’s the vibe? Panic? People typing “RUG!”? Are users showing off their new NFT? Consider replying to a random comment that happens to have emotes under it, “Briefly, scam or no?”. This way, you have a specific person’s attention who has already apparently said something relevant, because they have emotes! (I realize this sounds ridiculous, but we’re short on time, and we need high yield responses to binomial questions)

Reasonably confirmed not a scam? Consider the decision proceed to mint page. Be very sure you connect with your dummy account that contains the crypto that you have already written off as “stolen”.

Still not sure? Head to announcements. See when they started. Get a sense of the mood of the announcements… check back in to general chat. Take a brief moment to look around. This should take about 30 seconds.

At this point, its time to make a decision. Mint, or pass…

I just minted 20 (!) “Undead Doodles”. Total cost, 0.24 Eth. The art hasn’t revealed yet. The devs are assuring us that everything is okay, “It’s not a rug” they say in voice chat.

None of that matters to me. I set aside 0.3ETH and accepted that it was gone. Out of everything I just explained up to this point, The transfer to the dummy wallet was the only true decision. I may ultimately find that I’ve been robbed, but it’s already priced in.

It’s the PROCESS that counts. The outcome is just a byproduct. Remain true to the process, keep your cost basis low, and the outcomes will sort themselves.

I only need ONE to hit.

Update: Contract is verified. I minted 20 “Undead Doodles” for free + gas. Wish me luck

With unofficial help from a paper authored Professor Edward Lee I made my case to the CryptoMories developers for the release of intellectual property rights to the holders of each respective example of Cryptomories art.

IP is often an overlooked component regarding "ownership" of a specific example of an NFT project. The finer points of IP are not mine to articulate, but my understanding is that in the case of art, IP rights are retained by the creator of the piece by default restricting commercial use as a utility feature. The artist must explicitly grant IP to the owner of the piece in some capacity (public domain or a version thereof with upper limits to usage)

BoredApeYachtClub is the prototypical example of the power of branding, and a pioneer in distributed IP.

Professor Lee authored this paper on the IP strategy of BAYC. https://lnkd.in/e-CKpHQM

After presenting my case, and referring the Cryptomories dev team to Professor Lee's paper, I'm pleased to report that Mories have adopted BAYC's example and have released IP to owners building on a new age of decentralized IP.

Why is it called a bucket hat? The obvious answer for most is: "It LOOKS like a bucket"!

But this is not correct. (*waynes world flashback*)

take the bucket hat, and fold up the brim all the way around so that the brim is now "Up" 360 degrees around the hat.

Look familliar? It is now a "Dixie Cup" or the cap worn by US Navy Sailors.

Why do sailors wear this cap? Because in a flooding small craft, IT IS A BUCKET! Sailors may use the cap to bail water from a leaking small craft or compartment.

While most see a cap that LOOKS like a bucket and build a product based upon that assumption, they may well make a popular product, but completely miss the true "Spirit" of it's design. Conversely, "Bucket hat" made in the true spirit of its origin, with subtle features that hint at it's potential use as an actual bucket strike the consumer with words like "Quality", "well done", "wholesome" "complete"

FORM melded seamlessly with FUNCTION=QUALITY=ESSENCE=SPIRIT= The Human Condition.

Transitive Property: Form/Function = Human Condition.

If your desire is to build a "QUALITY" NFT project, it isn't enough to "Mime" what you've seen on the surface. That is "Form" only. You must understand it's cultural "Function".

Don't look "LIKE" the bucket, BE the bucket.