Disclaimer

This white paper is provided by Emoji Games GmbH with regards to Pocket Arena, the casual eSports platform and virtual game item exchange platform for non-app store games. The Pocket Arena (PA) platform uses Pocket Arena Token “POC”, a utility token for Pocket Arena dApps.

The information contained in this white paper and on www.pocketarena.com is for informational purposes only, for non-commercial, personal use, does not imply any contractual relations, may be incomplete and can be updated at any time, without prior notice, as Emoji Games may think fit. The history of any revisions will always be set out at the start of the document by way of the version reference. Emoji Games does not provide any warranty, express or implied, with respect to the accuracy, completeness or reliability of the materials and data mentioned in this document. At the same time, Emoji Games has made every effort to ensure that all statements and data submitted in this white paper are accurate and relevant as of today.

Throughout the entirety of this whitepaper, nothing should be deemed or perceived as a solicitation for investment, or does it pertain in any way to solicitation of an offer to buy securities. Likewise this document does not offer any advice in any form. Some statements and estimates in this white paper come under the category of forward-looking statements.

These forward-looking statements consist of both known and unknown hazards, and actual events may differ from estimates.

Any purchase of POC Token is non-refundable and is final. Any purchaser shall be required to agree separately on the standard POC Token sales agreement provided by Emoji Games. Please note that POC holders accept all risks of handling the tokens themselves. It is your sole responsibility to ensure that your participation in the token sale is not prohibited under the applicable legal restrictions in your country of residence or domicile. Emoji Games is not responsible for the actions of token sale participants who take part in this event in breach of their country’s laws, even if violations of these laws are due to ignorance.”

Possession and ownership of POC holds no rights, express or implied, with exception of the right to use POC as an access means of digital service within the PA ecosystem. You accept and understand that POC does not confer or represent any stake or ownership right, loan, security or share or equivalent rights to receive any form of future revenue shares in Emoji Games or any of its affiliates. The intended purpose of POC is not that of a commodity, security or any other type of financial instrument.

Emoji Games is not responsible for the requirements that the tax authorities of the country of residence (for individuals) or registration (for legal entities) may impose, due to the purchase, ownership and use of POC tokens. Prospective investors are solely responsible for determining whether a potential valuation or reassessment of the value of the POC token in the long term may have any tax implications in their jurisdiction. Emoji Games encourages individuals and legal entities to seek additional advice from legal, tax, financial or other specialised independent specialists.”

All Intellectual Property Rights within this white paper arising out of Pocket Arena platform and POC Tokens is solely reserved by Emoji Games GmbH. The English language version of the POC white paper is intended as the official primary source of information with regards to the POC token.

The information stated within this document may on occasion be translated into different languages, other than English, for user convenience only. Throughout such translations, it is possible that some of the information contained may contain errors, become corrupted, lost, or misrepresented. Therefore the details and accuracy of alternative documents cannot be guaranteed. In the event of inconsistencies (and or conflicts) between multiple translations of the white paper, or across our websites, the statements and provisions of this this original English language document will always take priority.

Emoji Games GmbH was incorporated in 2012 in Seeburgstrasse 18, 6006 Luzern, Switzerland with the registration.| no. CHE-331.810.628.

Document Version History

POCKET ARENA WHITE PAPER V.0.5

Released on 28th of March 2018

POCKET ARENA WHITE PAPER V.0.6

Released on 31th of March 2018

POCKET ARENA WHITE PAPER V.0.7

Released on 26th of April 2018

POCKET ARENA WHITE PAPER V.0.8

Released on 9th of May 2018

POCKET ARENA WHITE PAPER V.0.9

Released on 10th of September 2018

Glossary

Branded Mini-Games or BMG – Do-It-Yourself branded game creation software as SaaS developed by Emoji Games company. www.brandedminigames.com.

Brands – Advertisers who provide their marketing campaign through Branded Mini-Games with Casual eSports.

Branded Mini-Games with casual eSports – Similar to standard BMG, though built on the PA ecosystem by our in-house developers to client specifications, to offer incentivised user interactions for free. It’s an all-in-one, cost effective, result driven marketing campaign solution which includes a high quality marketing service, tailored to drive traffic, collect lead generations and increase brand awareness.

Emoji Games or Emoji Games GmbH – The Company which creates and develops PA and POC. All intellectual property rights of Pocket Arena belong to Emoji Games GmbH.

Casual eSports – A form of competition using online games (primarily HTML5 games) for one-on-one matches or tournaments within the PA ecosystem. One of the main features of PA is to provide a casual eSports API for PA dApp partners (ie. game developers), allowing their users to compete in casual competitions and benefit from receiving and using POC tokens by playing their games.

Another PA casual eSports feature is the PA Championship. The PA Championship is a sponsored worldwide tournament for PA players who currently hold the top rankings. PA’s casual eSports is intended to provide decentralised micro-tournaments for different types of games run by PA dApp partners anywhere and any time.
By implementing the PA API, dApp partners are able to play their games in a worldwide championship event, offered by the PA team.

PA Wallet – Cryptocurrency wallet to store the public and private keys of POC. The PA Wallet is used to send a receive the POC among other PA Wallet users. The first version of PA wallet will be created as a browser based wallet and later as mobile application. Users will be able to move their POC out of their wallets after the ICO, once listings start.

PA SDK – The software development kit, source code, javascript API, guideline documents, any other intellectual property rights created by and for Emoji Games to be distributed and integrated for approved PA dApp Partner.

PA Games – Any games integrated with PA SDK.

PA Marketplace – Virtual game item exchange place where people can buy, sell and trade their PA game items. Provided within the PA Wallet.

PA Championship – PA eSports worldwide event which takes place periodically and is organized by the PA Team. This will be sponsored by international brands for attractive prizes for winners, and the eSports may use a tournament elimination method in correspondence with the live online broadcast.

PA Casual League – A relatively small league for a multiplayer challenge mode as one of the casual eSports features provided by Pocket Arena based on PA eSports Engine. Upon a certain number of participants joining a lobby (e.g. 10 users participate in a PA league room) it forms a PA Casual League automatically and will run for a few days and the winners prizes will be given out upon finishing the league.

PA eSports Engine – This engine will select a certain number of participants of PA Casual League based on its algorithms and create a league room to start a League and award the winners with prizes at the end of the league according to the default settings of this engine.

PA Team – Dedicated team of people who develop and operate PA and POC. They are mostly the employees of Emoji Games and its affiliates. Not limited to the external advisors and contractors.

POC Rewards Engine – A smart economic structure as a set of algorithms that control how to distribute POC as a common currency to create economic incentives for PA users and other participants, allowing them to integrate with the POC and PA ecosystem. This economic structure will create natural incentives for all stakeholders of PA.

Pocket Arena or PA – The blockchain based eSports platform for non-app store games mainly HTML5 games and PC online games and their virtual in-game item exchange platform.

POC or POC Token – Crypto Pocket Arena token made and circulated for the use of Pocket Arena platform. A utility token running on Stellar Network.

Stellar Network – A cryptocurrency platform for exchanging small transactions at a very low cost while maintaining a very high speed transfer rate as well as very good security.
www.stellar.org.

Abstract

Pocket Arena’s mission is to create a decentralised micro eSports platform for everyone to enjoy and to allow safe in-game item trading through blockchain technology.

We believe in the power of decentralised casual eSports and the power of its blockchain tokenized games in the online gaming world. With the aid of blockchain technology, Pocket Arena is building a decentralised eSports and an in-game item exchange platform so that end-users and game developers are empowered with the following benefits:

FOR END-USERS

FOR GAME DEVELOPERS

Fig. 1 – Rugby ball with game item blockchain

Pocket Arena Token (POC) is a utility token based on Stellar. It is solely to be used in the Pocket Arena dApps. POC will be rewarded to PA dApp users according to their interactions in Pocket Arena. For example the end-users shall receive POC for playing PA games. End-users can then spend POC to purchase in-game items. By doing so, the end-user can gain advantages (multipliers/buffs/bonuses) in order to increase the chances of winning the game.

Serious gamers can create unique items such as equipment or even upgrade the capabilities of a character in the game. These items are tokenized blockchain items which allow users to have true ownership. In order to exchange for real world value, end-users can put these in-game items on sale on PA Marketplace via PA Wallet.

We are also introducing “Branded Mini-Games with casual eSports” and “Emoji Games” services which are both Dapps of pocketarena.com.

Fig. 2 – Branded Mini-Games logo.

Fig. 3 – BMG with Casual eSports.

Fig. 4 – Emojigames.io logo.

Branded Mini Games with casual eSports is similar to Branded Mini-Games, but with Pocket Arena feature(s). Bespoke playable ads are created for free by us for brands and their digital marketing purposes. Advertisers who use BMG with casual eSports can reward their users with POC. The POC received can be utilised on the PA platform or can be sold when POC becomes listed at any cryptocurrency market exchange later time.

These branded games offer fantastic value as the brand only pays for the PPC advertising costs. Production work on our side is done for free.

Pocket Arena’s vision is to create a thriving decentralised ecosystem for non-app-store games that live on the blockchain, declaring freedom from the duopoly Google Play and Apple app stores.

Fig. 5 – Shaking of two hands.

Pocket Arena (PA) is a one-of-a kind blockchain platform for gaming dApps, independent from any policies of Google Play and Apple store. We shall be releasing our own PA blockchain HTML5 games developed in-house initially, then offering the PA SDK to 3rd party developers as the second step. PA is not only open for HTML5 games but also PC online games. Currently, together with our partners, we have more than 10 million online game users who are ready to be constituted as PA users.

We believe that many high quality HTML5 game developers will be the first to join as PA dApp partners, followed by small or medium sized PC online game developers once the SDK for PC online game is released.

This PA platform and our PA dApps were not built overnight. It is our masterpiece that we have been developing and refining since 2012, investing more than 7 million USD over the last 5 years. Behind this development is a strong core engineering PA team. The PA team is a group of gaming experts with more than ten years of experience. Emoji Games GmbH was incorporated in December 2012 in Lucerne, Switzerland with the mission of “Empowering Your Business with Games”, providing multi-platform HTML5 games for brands. Our SaaS solution that creates branded mini-games without coding is loved by many brands, acquiring well-known international brands as our customers such as BMW, Samsung, Kinderjoy, KFC and many more. Since 2016, we have been also developing advanced HTML5 games with multiple stages and multiplayer functions, launching them to major messaging apps such as KakaoTalk, Facebook and VK.

Now, backed by blockchain technology, we are proud to launch the working platform of Pocket Arena, ready with high quality dApps that live on POC to the public prior to our Initial Token Offering.

Fig. 6 – Flag of the crypto-nation of Switzerland.

Fig. 7 – Companies using our Branded Mini-Games service.

Current Gaming Market and Challenges

DUOPOLY OF APP STORES

Mobile games revenue currently is a duopoly which is held by Google Play and Apple App Store. A revenue of $48 Billion in 2017, which is 35% of the worldwide gaming market (including console, pc online, browser etc), all of which goes to these two giants. In these app stores, only big developers with games ranked within the top 10 can make a good profit. In order to be ranked in the top 10, you need to spend millions on marketing budget. But most game apps without a big budget do not stand a chance due to the influx of new games everyday. These app stores have a very centralised strict policy for game apps, for example they do not allow any new creative ideas of payment nor new formats such as HTML5. Apple and Google dominate the market, charging a 30% fee on each transaction! The app stores asking share is too large. Is there a new way to make money for game developers? Google and Apple are quickly becoming more and more successful as they are the only real winners in this equation.

“Apple and Google dominate the market, charging a 30% fee on each transaction!”

1. https://newzoo.com/insights/articles/the-global-games-market-will-reach-108-9-billion-in-2017-with-mobile-taking-42/

ANY ALTERNATIVES?

We believe that we are at the dawn of HTML5 games market. It has just started to become more popular for many major messenger applications. One great benefit of HTML5 Games is that it is a cross-platform format, supporting both PC and mobile browser, that can even run within Apps. These HTML5 games are almost instantly playable, not requiring to download any new software. Thus, there is a huge potential for growth, as we can see that HTML5 mini-games have already hit the record of 170 million daily active users through WeChat in China2. Besides this, there are many other indicators too, such as Facebook who has opened their Instant Game platform for all developers. Since 2017, KakaoTalk has launched its new service - Snack Game, a platform for HTML5 games and they are already seeing rapid growth. Blackberry Messenger, still a big player in Indonesia, is preparing for their new HTML5 game service. India’s WhatsApp rival Hike and Russia’s major messaging app VK are also providing HTML5 games service since 2017. Thanks to its advantages of instant playable format and playable on any target devices (both on PC and mobile), the quality of HTML5 games are catching up with native mobile games in terms of popularity and not to mention its quality as both mobile specs and data bandwidth greatly increasing.

The PC online games market is already huge and will continue to grow in next few years, estimated to reach 33 billion USD in 2019. The main growth will be expected to come from developing countries. For PC online gamers, in-game item trading is a big part of game elements. However, due to fraud issues, gamers are still waiting for a right solution to solve this matter as it remains the highest priority to be able to trade in-game items without fraud.

In reality, when it comes to the blockchain gaming development, HTML5 games are much more quicker to develop as compared to PC online games. All the game designs and assets such as in-game items must be re-designed to fit into the blockchain platform. For PC online games, it can take up to a few years to develop a high quality PC online game that runs on blockchain. The workload to develop a PC online game into a tokenized blockchain game can take at least six months to a year or even longer. Thus, the plan is to first release PA Games in HTML5 in 2018 and then release the first PC Online game for PA from Q3 of 2019 onwards with our partners.

2. https://walkthechat.com/wechat-mini-program-statistics-2018/

PERSISTING FRAUD AND OWNERSHIP ISSUE

Unfortunately in-app purchase fraud is becoming a huge issue. An average of 7.5 in-game items are stolen for every legitimate purchase. Illegal copies of .APK file are common in developing countries. Duping is another common fraud, where criminals copy the virtual in-game items illegally and sell it at a discounted price. There is even an online community that teaches players how to dupe. This is a big monetary loss to developers and a deep disappointment to fair gamers. Fraudsters also try to steal gamers identities along with credit card information by hacking game accounts.

“An average of 7.5 in-game items are stolen for every 1 legitimate purchase” 3

Concerning in-game items ownership, here is a perfect scenario to describe the situation. Gamers work hard to earn an in-game item or pay with real money for it. Very often gamers may think that they virtually own their in-game items. Even though the gamer has signed and agreed to the EULA (End- User License Agreement), they probably did not understand that in fact they not own the in-game items at all.

For example, if the game server is hacked, the game developer disappears or the game policy changes, gamers would lose all their in-game items instantly. With this, no one can possibly be happy! These items are stored on the servers of the game developers. Gamers are neither able to use these items in other games, nor convert them into a real world value such as fiat money. If the game developers close the account of the gamers, the gamers lose everything.

3. https://www.statista.com/statistics/292516/pc-online-game-market-value-worldwide/

If the server crashes, the gamers lose everything. If the developer closes down, the gamers lose everything. The list goes on. The point is clear that the current system may be a small advantage to game developers / companies, though a huge disadvantage to gamers.

BIG PROBLEM IN DIGITAL MARKETING - LOSING EFFECTIVENESS AND ALSO THREATENED BY FRAUD

Common vocabularies used in problem solving meetings are ad blockers, banner blindness, bots and many more. We are living in a time of rapid development in technology. In the world of advertising it’s no different. Just look at the 1960s and 1970s, where a colourful full-page spread was sufficient to create a hype. With the rise of technology, internet and mobile devices, that were upposed to make advertising more poignant, instead the unwanted happened – the public became desensitized, developing “banner blindness” and some even are agnostic towards advertising. You cannot really blame the public, 5.3 trillion ads are being served per year, flooding the internet by squeezing into every available pixel of space, causing 70 percent of mobile users to use ad blockers. Advertising has lost sight of a very basic principle – the pleasure principle. Advertising is supposed to be entertaining, adding value, giving people the wow-effect. With the access to technology today, shame on us if we only settle for the mainstream and be a follower instead of an adopter. Serving ads should be given more attention in order to achieve quality. Banner ads are low cost, but what is the use of such a method when the ad does not reach where it is supposed to.

“70 percent of mobile users to use ad blockers” 5

4. https://www.emarketer.com/Article/Rising-Tide-of-In-App-Fraud/1012731
5. https://techcrunch.com/2016/03/13/how-emerging-tech-can-solve-ad-desensitization/

As if the matter is not bad enough, we now have a whole gang of fraudsters further destroying the reputation of digital marketing. In 2016 alone, it was estimated that there was a loss of $7.2 billion due to fraud. The following year in 2017 saw a figure that more than doubled from 2016, $16.4 billion. Effectively, for every $1 an advertiser invests in advertising, they only get $0.44 of value.

One analyst claims if publishers would remove the middlemen, the CPM shall increase from $1 to $5.3. These alarming figures creates a lot of fear and insecurity amongst the advertisers. At the same time the public is annoyed with all kinds of isleading ads, auto-redirects, video auto-play ads and many more.

Research suggests that more than a half of traffic that advertisers pay for is non-human bot traffic or fraudulent. Another significant part of ad budget is spent on intermediaries. On average, this means that for every $1 spent, an advertiser receives less than $0.5 of value. eMarketer estimates the 2017 worldwide digital ad market volume at $223.74 billion — which means that over $110 billion is wasted.

“For every $1 an advertiser invests in advertising, they only get $0.44 of value”

6. https://venturebeat.com/2017/10/17/tackling-the-f-word-the-smarter-approach-to-ad-fraud-vb-live/
7. http://eltoro.com/case-advertising-fraud-non-human-traffic-viewability-need-know/
8. https://www.emarketer.com/Report/Worldwide-Ad-Spending-eMarketer-Forecast-2017/2002019

Next we take a look at the role of intermediaries between advertisers and publishers. The intermediaries are complex, questionable and certainly expansive. It is known to be extremely hard to measure the true performance, of any advertising campaign, let alone the ROI (Return On Investment). In 2017, an estimated $223.74 billion was estimated to be spent worldwide on digital advertising, with middlemen taking up to 75% of the investment, and advertisers losing another $16.4 billion to ad fraud*. The figures are evidence of a lack of economical efficiency.

*Source: CNN: https://www.ccn.com/ethereum-based-advertising-network-tackle-digital-fraud-launches-ico/

There has been a change in regulations for the EU this year concerning the usage of cookies - the new GDPR (General Data Protection Regulation). Ad targeting has become more difficult. Consumers need more power in defining how much of their privacy they want to share in cybersphere.

Fig. 8 – Leaking Money.

What are the values of PA?

PA Tokens offer stability for developing markets with fluctuating economies, by creating an international and inclusive platform for everyone to play eSports and to buy, sell and trade game items while having fun! The value of PA can be best described when we take a look at each stakeholder.

1. FOR USERS: 3RS - REAL FUN, REAL REWARD AND REAL OWNERSHIP

Users don’t have to be a computer experts to participate in eSports. Our mission is to add fun and entertainment by making it possible for them to play a casual match or championship and enjoy the benefits of rewards and at the same time to allow safe trading of virtual in-game items. Users can level up their characters and power up in-game items. If the in-game items become more powerful and valuable, users can trade the virtual in-game items at the PA Marketplace. POC Tokens and crypto game items will be stored safely in the PA Wallet. POC will be used to buy, sell and trade different game items of PA games at the PA Marketplace. Immutable ledger of blockchain technology enables the true ownership of the virtual in-game items for users.

2. FOR PA DAPP PARTNERS (OR PA GAME DEVELOPERS):

Respect For Each Game Community

PA SDK is free and available to be integrated into games without strict requirements, allowing them to be published in a decentralised way. Anyone can become a PA dAPPs Partners by following PA dApp standards set by PA team and serve their PA games in their own portals, or community, or any site they want to publish without needing to be centralised to pocketarena.com, thus giving the developer true ownership of their own game.

Booster for Your Game Community

PA dApp Partners (or game developers) will have a good opportunity to grow their own community. According to POC Rewards Engine, any new user for your game will be given a welcome reward of POC just for joining as well as gain additional POC whenever they invite their friends. Also by playing your PA games and winning the match, users will gain yet more19 POC tokens. Thus your games and community will attract more new users as it grows exponentially which is a fantastic booster for your game community.

Fair Incentives / No Fraudsters

As our vision is to create a thriving decentralised ecosystem for the stakeholders independent from app stores, we would like to bolster our PA dApp partners by creating a natural, fair and transparent incentive model which reflects each communities contribution to the overall ecosystem.

For example, Brandon just played the Bubble Rush PA game, developed by Smith Game Company. Let’s say, Brandon received 20 POC for playing and winning this Bubble Rush game match. 2POC (10% of 20 POC) shall be shared with Smith Game Company and Brandon shall receive 18 POC in his PA Wallet. In the event of PA Championships, bigger prizes of POC shall be at stake and game developers shall also receive 10% of from the total prize winners reward in POC.

“The developer gets 100% of the ad revenue from their game”

The PA dApp Partner is also allowed to add an advertisement to the PA game (Google Ad Sense, Video ad, banner ad etc). The revenue from the advertising shall belong to the partner 100%. This PA game will be hosted by the partner independently and in a decentralised way. The PA Team does not touch any ad revenue that has incurred through running the ad in the PA game.

Another additional benefit to game developers is concerning the duping issue. Running games on the dApp of Pocket Arena makes it hard for fraudsters to dupe in-game items. In this way, this ecosystem can grow healthily for all parties without the negative influence of cybercrimes.

3. FOR ADVERTISERS (THROUGH OUR SMART DAPP “BMG WITH CASUAL ESPORTS”)

Recently the playable ad is a rising star in digital advertising as the battle of digital advertising is all about engaging the audience. Playable ads are a proven format for the highest engagement rate reaching up to three times higher than normal ads. This attractive advantage causes marketers to fall in love with Playable in HTML5 format. In combination with blockchain technology, Playable ads hold the potential to eliminate widespread fraud, so that advertisers will be able to know where their advertising budget really goes and end-users are more engaged due to the incentivisation of tangible real rewards for their interactions with the playable ads.

Fig. 9 – Why use playables?

“Playable ads reach up to three times higher than normal ads”

No Fraud Worries

Advertisers face less danger from fraud as playable ads are harder to be manipulated by bots. Analytic tools will help to identify bots easily. Advertisers shall be able to spend marketing budget more effectively by giving out POC to clients or consumers who are willing to receive advertising. This potentially increases the LTV (Lifetime Value), as advertisers give out real monetary rewards and not just “fake” rewards (in terms of an extra life in a game), giving stronger reasons for clients to stay loyal to the brand.

Higher Engagement and ROI

With playable ads, the CTR and eCPM will be much higher, as it is proven statistically by many sources. With this in mind, advertisers shall be able to focus on quality (content management) and not quantity (littering and crowding a website with ad banners). Advertisers budget can also be spent more efficiently on content creation instead of increasing volume of ad reach ineffectively.

BMG WITH CASUAL ESPORTS

Fig. 10 – Starting the next revolution in the digital marketing world.

Pocket Arena Features

1. A DECENTRALISED ESPORTS PLATFORM

PA Casual League

We believe that eSports begins from micro-tournament formats, played casually among friends, family, or any other gamers. The main purpose of eSports is to connect with others through gaming and be rewarded for it. Pocket Arena supports one-on-one challenge mode for all PA Games. One of our missions is to help each game community to grow and to boost growth in active users so that game developers can thrive. Thus, we provide developers with an eSports platform so that they may add more fun elements to their existing games.

For PA SDK integrated games, there is an option to create a casual league room with a specific number of participants.

For example:

  1. The creator of the room sets up the number of participants as ten people in order to begin the league.

  2. As soon as ten users enter the league room, this will start a PA Casual League and will last for a few days, according to the settings, which enables multiplayer challenge modes.

  3. When the set period of the league is over, the winners will be decided, and the set prizes will be rewarded to the winners according to the POC Rewards Engine.

PA’s eSports Engine will be used to form a league and to gather a certain number of participants in one lobby for the Casual League to begin. The number of PA leagues per day is limited because the daily allocated POC amount for winners is limited.

In the case that the daily allocated POC is used up, no more PA Casual Leagues will be created on that day. However, users can still continue to play multiplayer or single-player mode, just not in any type of league. It will be still possible to gain POC for collecting experience points though. Any remaining POC from the daily POC allocation for PA Casual Leagues will be returned to the PA Team.

Fig. 11 – PA Casual League.

PA Championship via Tournament

From time to time, the PA Team will organise PA worldwide Championships as larger, scaled eSports events for high-level users. This eSports event will play out via an elimination tournament method (detailed tournament rules shall be decided by the PA Team and be announced prior to the Championship).

Advertisers may participate in this event through sponsorships with POC. The POC sponsored shall be distributed to the winners as prizes. Advertisers as sponsors shall have the benefit to place their branded PA game in the championship games. Final and semi-final matches shall be broadcasted live openly.

Fig. 12 – PA Championship Diagram.

2. PA WALLET

When a new user signs up with a new Pocket Arena account, they will receive a link to activate their new PA Wallet. A welcome reward of POC tokens shall be given to every new sign-up. The PA Wallet V.1.0 shall be released as a web browser format, then later on followed by mobile application format and finally a Chrome Plug-In version.

Fig. 13 – PA Wallet Main Activities.

Fig. 14 – PA Wallet Menu list.

Fig. 15 – PA Wallet My Items.

The PA Wallet will display information on current POC balance, as well as POC earning and spending transactions. Besides POC, the end-user shall be able to see graphically all the virtual in-game items which the user has acquired. By clicking “SEND”, users could send any amount of POC tokens to other users’ POC Wallets, while clicking “RECEIVE” will show their key information only. Users can also go to the PA Marketplace to buy and sell their in-game items.

Users can search for available in-game items from a particular game to buy and also put their in-game items up for sale in the PA Marketplace.

3. PA MARKETPLACE (CRYPTO IN-GAME ITEM EXCHANGE)

PA Marketplace is the blockchain-based in-game item exchange platform where users can buy, sell, and trade their unique PA In-Game items. These include special rare items, unique game characters, and unique in-game equipment which users have added value to on-top of the standard base items. Additional power-ups and features could be added for a particular game by players, to allow them to have greater in-game advantages.

By activating the PA Wallet, players are able to sell or buy in-game items on the PA Marketplace. The PA Marketplace will use POC as a currency exclusively for all transactions. Stellar Smart Contracts shall be adopted here, including escrow for secure trading and auctions. This smart contract escrow system can be used to identify the correct item types and allows users to accept trades with just a tap (or click). When a matching price in POC is identified between the seller’s requested price and a buyer’s offered price, the items will then be released after the transaction.

During this trading event, 10% of the transaction amount from this item exchange in POC shall be shared between the PA team and PA dApp Partner as commission. 90% will be paid to the sellers PA Wallet in POC (this percentage is subject to be changed). This 10% commission for the PA Team and PA dApp partner shall be a 50-50 split. This commission is necessary to motivate the PA Team and dApp Partner to continue providing high-quality games and efficient PA operation services.

We estimate that at least six high quality HTML5 PA games shall be available by the end of 2018.

A minimum of four PA games shall be developed by Emoji Games with the remainder being developed by third-party PA dApp Partners.

Fig. 16 – Marketplace.

4. PA GAMEPLAY SCREENS (PA DAPP)

All PA games will contain a multiplayer mode which will allow for one-on-one matches through our eSports engine. PA’s AI will find an opponent close in experience automatically, taking into consideration each users current level.

1. Start a 1-on-1 challenge.

2. Wait for opponent to play a game together.

3. Play a game with another player within the time limit.

4. View results of the challenge.

Fig. 17 - Smash & Grab sequence.

Leaderboard

Each PA game has a leaderboard to show players’ rankings. In the PA Casual League, the top three players on the leaderboard will be the winners either by most games won or highest scores achieved. The method by which winners are selected will vary from game to game.

In-Game POC Shop

This is an in-game shop where users can purchase each games’ currency using POC. All end-users who receive POC Welcome Rewards can spend their POC on in-game items in order to gain an advantage in the game. POC is to be converted to each game currency first and then the game currency will be used to buy in-game items.

Fig. 18 Leaderboard.

Fig. 19 POC Shop.

The reason for an additional conversion from POC to specific game currency is to enable different game developers to create various types of in-game items and to set their value creatively. If the game has already been developed prior to integrating the PA SDK, then this method will help to reduce workload significantly. In addition, this in-game shop (as opposed to direct transactions in POC) can help to reduce the transaction fees on purchases of micro- valued in-game items, which are mostly one-off consumable items

Pocket Arena Ecosystem

1. STAKEHOLDERS

The PA ecosystem will offer fair compensation to PA dApp partners, advertisers and users, respectively, for the value they provide to the digital economy. This ecosystem is scalable according to the number of PA games and also the value of games. The values of games are measured by the motivation to play, the ability to power up in-game items, the ability to increase and exchange the value of game items, and also the total transaction volume in the game’s exchange activities.

Pocket Arena ecosystem consists mainly of four parties: end-users, PA dApp Partners (PA game developers), the PA Team, and Advertisers who use the BMG with casual eSports service.

Fig. 20 – Stakeholders Diagram.

  1. End-Users: Any end-users who sign up on PA will receive their own PA Wallet with their own security key. End-users can simply play the PA games and gain POC rewards according to the POC Reward Engine. Users can also spend the POC to purchase in-game items and buy other unique game items at the PA Marketplace and can spend the POC for the following additional usages:
    • as a token to unlock the full version of high-quality PA games,
    • as a token to play special editions of high-quality PA games,
    • as a token to enact users’ level upgrades who fulfil the min. required experience points,
    • as a token to participate in the PA Championship.

  2. PA dApp Partners: Any game developer for HTML5 games and PC online games can participate as a PA dApp Partner. Once any game developed by a third-party developer fulfils the minimum standard of game quality, the PA team shall issue an approval. By accepting the terms for Partners, developers could use the PA SDK for free and benefit from the features of PA. They could also publish their PA-integrated games on any game community they want to.

  3. Advertisers: Brands can purchase POC tokens for use with the playable ad and to reward their end-users with POC so that their end-users can enjoy the PA features with POC. Advertisers can publish their BMG with casual eSport games wherever they wish to publish them, such as their official website, within their own app, on social media sites, or at pocketarena.com. Advertisers can also sponsor PA Championships with their own branded PA Games and sponsor the prizes in POC for the Championship winners.

  4. PA Team: This is the development and operation team for Pocket Arena platform. They play a governance role for POC Tokens and provide both end-users and the dApp Partners with POC rewards according to the POC Rewards Engine. The PA Team shall support PA dApp Partners in integrating games into the platform with PA SDK. The PA Team also organises PA Championships and sourcing for bigger prizes sponsored by international brands.

2. POC SHARING MODEL

We understand that the PA Ecosystem becomes viable when dApp partners participate with their high-quality games. One of the most important factors of success is to provide rewards for these partners. In this case, the partners could use the rewards to boost their own game community within the PA Ecosystem.

POC Reward and PA Casual League Prize Sharing Model: End-users’ POC Rewards gained by PA Game playing will be shared with the PA dApp Partner at a rate of 10%.

PA Championship Prize Sharing Model: All POC prizes for PA Championships shall be shared with dApp Partners at 10%. The remaining 90% will be shared out amongst the winners.

PA Marketplace Transaction Sharing Model: Upon in-game item trading completion by end-users on the PA Marketplace, the selling price will be paid to the seller’s PA Wallet after deducting 10% as a commission. This commission shall be split between PA dApp Partners and the PA Team equally.

NOTE: All the above mentioned percentages are subject to change.

THREE PRONGED APPROACH TO VOLUME

Overview of POC Token and POC Reward Engine

1. BASE TECHNOLOGY OF POCKET ARENA TOKEN (POC)

The PA Team believes that using a high-speed and highly scalable blockchain is key for a functional gaming blockchain platform. Pocket Arena Token, or POC, is designed as a utility token to access the online gaming services of PA dApp Partners. POC is working on the Stellar Network, which has a low fee and is a very quick cryptocurrency network.

Recent ICO projects in the blockchain gaming sphere, have adapted both the ERC-20 and ERC-721 protocols of the Ethereum network. ERC-721 is used to create non-fungible tokens, such as Cryptokitties, and at the same time, ERC-20 is used to receive blockchain payment funds for ICOs. However, the fundamental problem of Ethereum is its scalability, which has not been solved thus far. The Ethereum network is getting slower and more expensive for end-users, especially since the launch of Cryptokitties. Using the Ethereum network for a gaming platform, which requires microtransactions, is not the best choice, as the gas fee is relatively expensive compared to game asset prices.

Fig. 21 – 2nd generation.

9. https://www.stellar.org/

Fig. 22 – POC the new generation.

2. POC ALLOCATION FOR POCKET ARENA OPERATIONS (FOR 10 YEARS UNTIL 2027)

According to the 10-year POC operation plan, 400 million POC (40% of total minted) will be reserved for PA operations. Each 25% of this amount is fixed to be allocated for different usage by PA, as below, and this distribution of POC will be carried out by the POC Rewards Engine.

Total reserved POC for PA operation = 400,000,000.

  1. Rewards for end-users’ experience points: 25% of total PA operations reserve (100,000,000)

  2. Prize awards for PA Casual Leagues: 25% of total PA operations reserve (100,000,000)

  3. Welcome and invitation rewards: 25% of total PA operations reserve (100,000,000)

  4. PA Championship prizes for sale to advertisers who wish to sponsor PA Championship: 25% of total PA operations reserve (100,000,000)

Fig. 23 – Reserved POC for PA operation Pie chart.

3. POC REWARDS ENGINE

The POC Rewards Engine will issue daily rewards to developers and users based on a measure of the POC economy within each individual PA game. The POC Rewards Engine consists of a various set of formulas and algorithms defining how to distribute the POC Tokens to end-users and developers. These are defined by the PA Team in this document.

End-users will be awarded with POC mainly for the four following actions:

  1. Play Reward: By simply playing the single-player modes of PA games as well as the multiplayer modes of games. A formula of experience points will apply. This reward is shared with the game developer by a ratio of 90:10 (users:developers).

  2. Winners Reward: This reward will be given to the winners of PA Casual Leagues and PA Championships. This reward is shared between the winner(s) and the game developer at a ratio of 90:10 (winner:developers).

  3. Welcome Reward: End-user receives during sign-up for a PA Wallet. 100% of the reward goes to the end-user.

  4. Invitation Reward: End-user receives POC at 100% for submitting friends’ referrals for a PA Wallet.

Example of Play Reward, the base unit of POC will be granted to users whenever the experience points of each player reach a certain level through playing the PA games.

The POC Reward Engine will calculate each attribute according to the actions above and will send POC to the user’s PA wallet based on the algorithm and formula explained herein.

Fig. 24 – Congratulations for Play Reward..

User Level

Any new user of PA starts at Level 1. Depending on each user’s experience points, a user’s level will be upgraded. The algorithm for experience points will be determined by number of game-plays, number of wins, and total transaction amount of virtual game items, etc. Depending on your level, you will have access to participate in PA Championships.

4. ALGORITHM & FORMULA OF POC REWARDS ENGINE

  1. Elements of the Rewards Algorithm

    • D: Day After Published

    • TRA: Total Reserved Amount for Reward (the same as R0)

    • RD: Reserved Amount on Particular Day D

    • VD: Vested Reward Amount on Particular Day D

    • d: 0.0548% Remaining Reserves on Each Day
      (20% of remaining reserves every year) = 0.000548

    • TSA: Total dApp Service Amount

  2. Formula of the Rewards Algorithm

    Total reserved POC amount in a particular day D (VD)

    VD = RD x d

    RD = R0 x (1-d)D

    For example:
    To calculate the each reserved amount on 365th day after the PA Service started;

    • R0 = 100,000,000

    • R365 = 100,000,000 x (1 - 0.000548)365 = 81,866,949

    • V365 = 81,866,949 x 0.000548 = 44,863

    NOTE: If the reserved amount is not completely spent in the particular day, the unused POC shall be added on top of the daily POC allocation for the next day.

  3. POC Allocation Algorithm for Each dApp

    The number of POC will be reserved for each dApp based on each dApp’s DAU, its total number of single plays, and the total number of matches (multiplayer) on the dApp. The higher the traffic generated by the dApp, the more POC will be distributed to the dApp. The POC Reward Engine will decide the day’s reserves for each dApp’s allocation based on the previous day’s traffic for a given dApp.

    Algorithm of POC allocation for each dApp is as below:

    DAU(%) = (dApp DAU / Total DAU) x 100

    Single Play Count(%) = (dApp Play Count / Total Play Count) x 100

    Multiplay Count(%) = (dApp Multiplay Count / Total Multiplay Count) x 100

    Traffic(%) = [DAU(%) + Play Count(%) + Multiplay Count(%)]/3

    For instance, three PA dApps (A dApp, B dApp, and C dApp) are running for 365 days starting from the first PA official launch day. The previous day’s traffic of each of the three dApps are proportioned at 70% for A dApp, 20% for B dApp and 10% for C dApp. The following number of POC will be the maximum reserved POC for each dApp on that day.

    • A dApp : 70% = 44,863 x 70% = 44,863 x 0.7 = 31,404

    • B dApp : 20% = 44,863 x 20% = 44,863 x 0.2 = 8,973

    • C dApp : 10% = 44,863 x 10% = 44,863 x 0.1 = 4,486

  4. Welcome and Invitation Rewards

    Anyone who signs up on Pocket Arena and activates the PA Wallet shall be granted a certain amount of POC rewards with a tiered basis.

    For example:

    • 50 POC to the first 0 ~ 10,000 users (reserved 500,000 POC)

    • 40 POC to the next 10,001 ~ 100,000 users (reserved 3,600,000 POC)

    • 30 POC to the next 100,001 ~ 500,000 users (reserved 12,000,000 POC)

    • 20 POC to the next 500,001 ~ 1,000,000 users (reserved 10,000,000 POC)

    • 10 POC to the next 1,000,001 ~ 5,890,000 users (reserved 48,900,000 POC)

    Also, when an end-user invites another person to be a new PA Wallet user, they will be rewarded with a certain number of POC as soon as the invited person activates her/his new PA Wallet. End-users can be rewarded up to 6 times for friend referrals. The total allocated POC for Welcome and Invitation Rewards is 100,000,000 POC.

PA Roadmap - Development and Operation

POC Allocation

This following section shall elaborate the POC allocations and strategy. Only 1 billion POC shall be created and there shall be no mining possible for POC. All minted POCs are intended to be allocated as follows:

20% (200,000,000 POC) for general sale, which consists of both private and public sale. We may allocate 100,000,000 to private sale purchasers and another 100,000,000 to public sale purchasers. In the case that there is a high demand during the private sale, more than 100,000,000 POC Tokens shall be offered for pre-sale at Emoji Game’s discretion within a total of 200,000,000 POC Tokens.

10% (100,000,000 POC) for exclusive sale for BMG with casual eSport advertisers only.

40% (400,000,000 POC) reserved by the Company to operate Pocket Arena for 10 years from the official launch in 2018 until 2027. To incentivize end-users with POC Rewards for their sign-ups, referrals, PA game plays, PA Championships, and PA Casual League winners. Within the total allocated POC Tokens, 100,000,000 POC are allocated for PA Wallet activation and referral rewards, 100,000,000 POC are allocated for prize awards for PA Casual Leagues, another 100,000,000 POC are allocated as rewards for users’ experience points as collected by playing PA games, and the last 100,000,000 POC are allocated for sale to PA Championship sponsors.

20% (200,000,000 POC) reserved by the Company for further PA developments and for further PA operation reserve as a contingency.

10% (100,000,000 POC) to be distributed by the Company to Pocket Arena team members, employees of Emoji Games, and employees of its affiliates and also to external PA advisors and supporters.

POC Sale

POC GENERAL SALE

Out of total 1,000,000,000 POC, 20% of all minted POC shall be offered for private sale and for public sale. The public sale shall take place in Q3 2018 and stay open for 4 weeks or until the hard cap of $4.6 million USD is reached.

Maximum supply : 1,000,000,000 POC - no new POC will be ever created.

For sale : 200,000,000 POC

Price of POC : 1 POC = $0.05 USD

Accepted currencies : BTC/ETH/XLM/USD

Public sale: Q3 2018

Private sale shall end on 31st of June 2018. The Private Sale period can end earlier once the allocated 100,000,000 POC are sold out. In case that there is a high demand from private sale purchasers, Company may allocate more than 100,000,000 POC for private sale from public sale allocated POC quantity within the 200,000,000 POC for total sales allocation. Just before the public sale starts, the available POC for public sale shall be informed to the public.

All currency is listed in USD (U.S. Dollars).

Private Sale Discount Scheme:

Private sale hardcap goal: $4,187,500

Public sale hardcap goal: $4,687,500

POC EXCLUSIVE SALE

Out of total 1,000,000,000 POC, 10% of all minted POC shall be offered for sale to BMG with casual eSport advertisers only. The POC price is 0.05 USD and no discount is offered for the advertiser. During private sale period, advertiser can purchase a minimum of 60,000 POC at $3,000 USD for the service package as described in the table below. The POC price may vary depending on the market price after this exclusive sales period in 2018. This table below shows how Branded Mini-Games with Casual eSports is integrated in the BMG Enterprise portfolio. Additional advantage is that the PA Team is providing implementation services. This means brands only need to provide the assets and the customisation of the playable be provided once the minimum of 60,000 POC is purchased.

Intended Use of Proceeds (Public Sale Fund)

All funds raised from the public sale shall be intended to be used for the following purposes:

60% of proceeds will be used for general overheads of Company for PA and PA dApps development and operational costs of all technology described in this whitepaper, including PA SDK, PA Wallets, POC Rewards Engine. Proceeds shall also be used for PA Blockchain games development as dApp.

5% of proceeds will be used for ensuring optimal security standards of the POC Tokens and PA platform. This allocation also covers facilitating Virtual Private Networks for PA team members, covering minimum five years of increased cost from hosting web servers, firewalls, and also countermeasures to anticipate the increase of PA users.

25% of proceeds will be used for marketing and community building of PA. Cost for PR and developing partnerships with dApp Partners of gaming industry to widen the PA ecosystem shall be covered here as well.

5% of proceeds will be used as legal fees to obtain professional advice and solicitation to ensure full compliance on all related regulations and laws of Switzerland. This allocation should also cover each jurisdiction where the Company is doing business in.

5% of proceeds will be set aside for any unforeseen costs and and contingency reserves.

This allocation is subject to change.