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NFTs: The Game is Afoot

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  • Bernhard K Meister
  • Henry CW Price

Abstract

On the blockchain, NFT games have risen in popularity, spawning new types of digital assets. We present a simplified version of well-known NFT games, followed by a discussion of issues influencing the structure and stability of generic games. Where applicable, ideas from quantitative finance are incorporated, suggesting various design constraints. Following that, we explain three distinct methods for extracting value from NFT games. The first is to utilise NFT tokens as collateral outside of the game's walled garden; the second is to construct mutual beneficial games based on the participants' risk tolerance, and the third is to use Siegel's paradox in the case of multiple numeraires.

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  • Bernhard K Meister & Henry CW Price, 2022. "NFTs: The Game is Afoot," Papers 2209.09956, arXiv.org.
    • Handle: RePEc:arx:papers:2209.09956
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    References listed on IDEAS

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    1. Matthieu Nadini & Laura Alessandretti & Flavio Di Giacinto & Mauro Martino & Luca Maria Aiello & Andrea Baronchelli, 2021. "Mapping the NFT revolution: market trends, trade networks and visual features," Papers 2106.00647, arXiv.org, revised Sep 2021.
    2. Yingdong Lv & Bernhard K. Meister, 2009. "Application of the Kelly Criterion to Ornstein-Uhlenbeck Processes," Papers 0903.2910, arXiv.org.
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