1. Disclaimer

This white paper is provided by Emoji Games GmbH with regards to Pocket Arena, the Social Esports Platform and NFT Marketplace. 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, and does not imply any contractual relations, it 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, nor 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, 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 the Pocket Arena platform ,POC Tokens and PA Wallet are 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 occasions 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 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.

2. Document Version History

POCKET ARENA WHITE PAPER V.2.0

Released on 19th of April 2021

POCKET ARENA WHITE PAPER V.1.0

Released on 05th of March 2021

POCKET ARENA WHITE PAPER V.0.9

Released on 10th of September 2018

POCKET ARENA WHITE PAPER V.0.8

Released on 9th of May 2018

POCKET ARENA WHITE PAPER V.0.7

Released on 26th of April 2018

POCKET ARENA WHITE PAPER V.0.6

Released on 31th of March 2018

POCKET ARENA WHITE PAPER V.0

Released on 28th of March 2018

3. What is Pocket Arena? (PA)

Pocket Arena is a social eSports gaming platform that supports casual eSports games and tournaments and provides digital rewards and NFT marketplace. Through blockchain technology, we provide digital rewards to game users and tournament winners in a fair and easy way. We also provide an NFT gaming platform and game item marketplace for blockchain games.

3.1 A Social eSports platform for everyone

So far, the worldwide eSports gaming market has grown to 3Billion USD. This market has been developed by certain professional players and by hosting offline events focusing on hardcore games. However, since the Coronavirus pandemic, the trend is changing, and it is transforming into an online-oriented, casual game-oriented social eSports tournament that can be enjoyed on mobile phones by ordinary people.

Pocket Arena is a gaming platform on blockchain technology for tournaments of casual games that can be enjoyed by anyone. It is not confined to pro players and its main feature is also that diverse age groups can enjoy the game in a casual manner and receive appropriate rewards.

3.2 Play2Earn model

Play2Earn is a business model that embraces the concept of an open economy and provides financial benefits to all players who add value by contributing to the game world.

Giving gamers ownership of in-game assets and allowing them to increase their value by actively playing the game are key components of the play2earn business model. By participating in the in-game economy, players are creating value for other players and the developers. In turn they are rewarded with in-game assets. These digital assets can be anything ranging from cryptocurrencies to in-game resources that are tokenized on the blockchain. It is for this reason that the play-to-earn business model complements blockchain games so well.
Pocket Arena game players and developers, POC, are rewarded in return for their various activities. Also, by using POC, users can earn participation in assorted events within the PA ecosystem.

3.3 NFT gaming platform and DLT eWallet

While the global gaming industry continues to grow, it remains structured in a way that it primarily benefits game developers and perpetuates a one-directional flow of value in which players spend money to unlock access to in-game assets. In contrast, blockchain-built games enable players to capture the utility and value of in-game purchases and asset acquisitions more effectively. Blockchain technology in gaming is driven by non-fungible tokens (NFTs), digital assets that represent in-game content. These NFT tokens are unique, rare, and indivisible, while the blockchain networks that underpin NFTs facilitate player ownership and provable scarcity. In the long run, every game company will be forced to participate in NFTs because the attractions are so strong for players.

PA Wallet is a private blockchain based eWallet for PA supported cryptocurrencies including NFTs to store, send and receive the public keys and private keys in a safe and user-friendly way. PA Wallet runs on a Distributed Ledger Technology (DLT) - Hyperledger Fabric node, an open-source distributed ledger technology.

Because all Pocket Arena in-game asset transactions take place within DLT-based PA Wallet, with a single login to PA Wallet, PA users can not only enjoy the various PA games but also secure, fast and gas-free transactions of NFTs within PA Wallet.

Eventually, this PA Wallet based on DLT Hyperledger Fabric will be able to support different kinds of NFTs for interoperability and to interconnect the various NFT games.

4. Three (3) main elements of Pocket Arena services and its technologies

Fig. 1 – POCKETARENA logo

4.1 POCKET ARENA (PA)

Pocket Arena is a social eSports and tournament solution that primarily works in web browser games (HTML5). It is a platform in which users can receive digital rewards by playing the games, winning the tournaments and performing certain positive actions. PA SDK is applied to all PA games, so you can receive POC for free according to your experience points (XP). By distributing PA SDK to developers for free, game developers are permitted to easily add eSports tournament functions and crypto reward functions to game players. Game developers can also monetise their games simply by applying the PA SDK into their games and the PA ecosystem may grow in this way.

PA Match Home

Fig. 2 – Tournament Match

PA Match Result

Fig. 3 – Tournament Result

PA Match Profile

Fig. 4 – My profile

PA supports not only POC, but also BTC, ETH, and USDT, allowing users to participate in eSports and receive rewards in multiple currencies. It also supports various types of tournaments.

PA 1:1 CHALLENGE

PA is mainly offered in the form of a 1:1 challenge, and the matches do not need to be played synchro-nously. This means that players don’t have to wait to compete with others in real time. Instead, the match starts immediately whenever a player enters a tournament. The match score is then recorded and other similar grade players are recommended.

PA TOURNAMENT/CHAMPIONSHIP

The PA Tournament/Championship is an online event in which prize money is placed in POC on a regular basis, and tournament matches are played in the 16-finals, quarter-finals, semi-finals, and finals to select a champion and allocate prize money.

Tournament Intro

Fig 5. Tournament Detail

Tournament Notice

Fig 6. Tournament Notice

Player Matching

Fig 7. Round1 Matching

Round1 Result

Fig 8. Round1 Result

Round of 16

Fig 9. - Round1

Round of 8

Fig 10. - Round2

Round of 4

Fig 11. - Round3

Final Match

Fig 12. - Final Match

Final Winner

Fig 13. - Winner

4.2 Pocket Arena Token - POC

The Pocket Arena is powered by POC, the Pocket Arena Token, an ERC 20 token that runs on the Ethereum network. In 2018, POC was recognized by the Swiss financial supervisory author-ity FINMA as a cryptocurrency for the Pocket Arena platform, PA-Dapp games and PA Wallet as utility tokens.

POC works as a kind of mining concept. When you play PA games, you can earn a certain number of XPs and convert the XPs to POC. POC can be used as an entry fee to participate in a match and it can be given as a prize when you win the match. It is also used as a currency to purchase in-game assets for various PA games.

POC runs on the Ethereum network for listing or wallet interoperability, but in fact, when it comes to Pocket Arena games and in-game asset transactions, it is operated under a PA Wallet based on Hyperledger Fabric, a private blockchain, so the speed is very fast, approximately 1-2 seconds, and transaction fees are zero.

Fig. 14 – POC the new generation

4.3 PA Wallet and NFT Marketplace

Fig. 15 – PA Wallet and Cryptocurrency

PA Wallet is a private blockchain eWallet for PA supported cryptocurrencies to store, send and receive the public keys and private keys in a safe and user-friendly way.

PA Wallet runs on a distributed ledger technology - Hyperledger Fabric node, an open-source distributed ledger technology. All transaction history is stored as a hash, so it is transparent, secure and cost-free. PA Wallet especially supports the NFT marketplace, in which PA users can trade the NFT game items in one place (via P2P or B2C).

Within PA Wallet, all transactions are transparent and secure, and personal information is not exposed because it uses a private blockchain, Hyperledger Fabric. In addition to POC, PA Wallet may support other cryptocurrencies, gradually, over a period of time.

NFT MINTING

From PA SDK 2.0, all private keys of PA in-game assets are stored in the PA HSM (Hardware Secu-rity Management) and KMS (Pocket Arena Key Management System) of Google Cloud, located in Zurich, Switzerland. When a player requests an external withdrawal of game assets, an ERC 721-based NFT is issued and can be transferred to an external wallet that supports ERC721.

When a player wants to deposit NFT from an external wallet to a PA Wallet for a transaction, the private key of the NFT is stored in PA KMS for the highest security standards, and in actual trans-action, it is converted to fNFT in the PA wallet and securely traded on the DLT. In conclusion, safe, fast and gas-free transactions of NFT tokens are possible within the DLT-based PA wallet.

In particular, through a partnership with falk.app by Falknis Group AG, a sister company of EG, PA Wallet will be serviced under the TVTG (Token Vertraunswürdige Technologie Gesetz) ap-proved by the Liechtenstein Financial Market Supervisory Authority: FMA, by end of the year 2021. Liechtenstein is a European Economic Area (EEA) member state.

Features of PA Wallet

  1. DLT eWallet for PA supported digital assets, allowing access to PA games with a single subscription.

  2. PA Wallet stores private keys within HSM in Google Cloud located in Zurich, Switzerland, and manages keys with KSM.

  3. The eWallet uses Hyperledger fabric technology, its processing speed is fast, there is no cost, and personal information is protected.

  4. Investor and customer assets are protected by the receipt of a TVTG approval from the Financial Supervisory Service FMA in Liechtenstein, an EEA member state. (Planned by end of 2021).

  5. Integration of the NFT marketplace for blockchain games.

5. User's Journey

5.1 PA SDK 2.0 with PA Wallet

  1. You can sign up for PA Wallet on your browser for free.

    Fig. 16 – PA Wallet Sign Up

    Fig. 17 – PA Wallet Sign Home

  2. You can start a match by choosing a PA game from the Dapp menu.

    Fig. 18 – dApps

  3. The menu displays eSports practice mode, single mode, Pocket Arena mode (real -reward matches).

    Fig. 19 – dApps Game

  4. When you enter Pocket Arena mode, you can start a 1:1 challenge match for each Novice, Amateur, and Pro challenge, depending on your level. Alternatively, you can choose the PA Tournament to participate in the championship event.

    Fig. 20 – Challenge Mode

  5. Or you can choose the PA Tournament to partici-pate in the championship event.

    Fig. 21 – Championship

  6. For cryptocurrency deposit, your public key is provided as a barcode, and we recommend that you deposit up to USD 300 at a time. You must provide the KYC required by the EU standard, and light KYC will be conducted for small amounts less than USD 300.

    Fig. 22 – PA SDK Deposit

  7. For users who do not own cryptocur-rencies, users can purchase up to $200 with a credit card in the app/web.

    Fig. 23 – PA SDK Shop

  8. According to the principle of Winner Takes All, the user who wins the match will receive 90% of the sum of the participation fee of the player and the opponent as a reward, and the remaining 10% will be shared by the game company and EG.

  9. Fundamentally, all PA games support POC. Even if you play a single game with-out a match, POC is paid to all users by the POC reward engine by calculating the XP(Experience Points) value.

  10. Fees are deducted when withdrawing cryptocurrency, and the actual withdrawal set-tlement is completed within 1 to 2 business days after manual verification in order to prevent fraud.

5.2 PA SDK 3.0 with NFT game item marketplace

NFT (ERC 721) is supported to issue Pocket Arena in-game assets as a unique asset format. Castle Defence, the NFT blockchain game by Emoji Games (to be released in beta in the second quarter of 2021), includes the ability to create and multiply in-game assets in the form of knight characters, weapons, castles and equipment. It is possible that players and sponsors can pur-chase and trade Castle Defence’s game assets directly from PA Wallets and issue ERC 721 NFTs upon withdrawal.

In Castle Defence, users can purchase and trade unique NFT Castle and in-game items through POC or credit card under PA Wallet.

Fig. 24 – Entrance

Fig. 25 – Marketplace

Fig. 26 – Marketplace Detail View

6. Ecosystem and business model of PA

Fig. 27 – Ecosystem Diagram

EG (Emoji Games) – is a corporation registered in Switzerland that develops and operates Pocket Arena services and issues POCs. More than 15 PA games have been developed in-house and are scheduled to be launched in 2021.

Developers (HTML5 game developers) – Developers can easily convert standalone HTML5 games into eSports games using PA SDK and create a new revenue stream.

Monetization Model for Developer

  1. 10% of POC rewards received by users for playing the games are shared with the developer as an incentive.

  2. 10% of PA eSports entry fee paid by users is shared by the developer and Emoji Games at a ratio of 5:5

  3. Profit sharing of 70% when the game item is sold in the PA Wallet game item market-place.

Users (PA end users) – Users can sign up with PA after downloading PA Wallet for free from the App Store or by accessing the web. After successful sign-up, users are rewarded with POC based on their XP according to the POC reward engine. Users can participate in the match by paying the entry fee in POC for the PA tournament, and the winner will receive 90% of the sum of the entry fee of the participants.

PA Wallet – The revenue model of PA Wallet has a withdrawal fee, and the game item revenue in the marketplace is shared at 70 (Developer) 30 (PA Wallet) for B2C.

Fig. 28 – Shaking of two hands

7. POC Allocation

Fig. 29 – POC Allocation New Pie Chart

  • 15% Team & Supporters

  • 30% General Sales

  • 20% Pocket Arena Reward Pool

  • 20% Marketing, Partnership and Liquidity Management

  • 15% Company Reserve

* Pocket Arena Reward Pool has three categories.

  1. Reward for user experience (XP)

  2. Prize money for winners of PA tournaments and event participants

  3. Rewards for welcome, invitation and other supportive actions of the user.

8. Technology

8.1 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 various sets of formulas and algorithms defining the distribution of the POC to end-users and developers. These are defined by the PA team in this document.

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

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

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

  3. Welcome Reward: The end-user receives this after a successful sign-up for a PA Wallet and upon completing the KYC. 100% of the reward goes to the end-user.

  4. Invitation Reward: The end-user receives POC at 100% for submitting friends’ refer-rals for a PA Wallet.

As an example of Play Reward, the base unit of POC will be granted to users whenever the expe-rience 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.

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 the 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.
In particular, those who signed up for Pocket Arena and successfully completed KYC will receive a certain amount of POC rewards. When existing users contribute to the expansion of the PA economy. Contributions can be layered for each action point, and POCs can be awarded for each successful completion of action points. Example of action points-when a friend completes signing up for PA Wallet When a friend deposits a certain amount, the friend reaches a certain level of experience points (XP). In addition, invitation rewards are designed to provide more POCs when the total number of registered users is small. The sooner you achieve the reward action points, the more POCs you will receive as rewards according to the set algorithm and formula. 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)

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

  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

8.2 Architects of Pocket Arena Services

All POCs that run in PA games are converted to fPOC (fake POC) by applying distributed ledger technology (DLT) and used for transactions. The actual POC’s private key is not used within the PA game but is stored securely using Google Cloud’s KMS (Key Management System) and HSM (Hardware Security Management), which have servers in Zurich, Switzerland. Other cryptocur-rencies other than POC are stored in the same way (fBTC, fETH, fUSDT). The reason for using fPOC is because the private key is stored separately, not being used for real-time transactions. In order to convert fPOC into real POC, it is possible only when the user requests to withdraw money from PA wallet to external wallet.

PA Wallet uses the distributed ledger technology DLT, the ever-evolving Hyperledger Fabric technology. Since it is an open source blockchain platform, it has the advantage that there is no fee for use, and because it is a private blockchain, it has the advantage of protecting per-sonal information. Hyperledger Fabric provides distributed ledger technology that provides enterprise-class network security, scalability, confidentiality and performance in a modular blockchain architecture. Among them, the following blockchain functions have been applied to PA Wallet.

Main Functions

Identity management / Personal information protection and confidentiality / Efficient process-ing / Chaincode smart contract function / Modular design is supported.

Fig. 30 – System Architects

9. PA games (dApps) in the pipeline for 2021

The games below are developed in-house and wholly owned by Emoji Games. From 2022 on-wards, more PA games will be added via partnership.

9.1 Castle Defense

9.2 Bricks N Targets

9.3 Animal Match3

9.4 3D Basketball

9.5 Word Search Arena

9.6 Block N IQ

9.7 Ice Pop

9.8 Smash N Grab

9.9 Super Pill

9.10 Catch me If You Can

9.11 Cricket

9.12 Jump the Gaps

9.13 Minisok

9.14 Tap the Icon

9.15 How Well Do You Know Me?

9.16 Guess What?

10. TEAM

Journey of Emojigames Since 2005

Fig. 32 – emojigames.io logo

London, United Kingdom, October 2005. We entered the global market by introducing our Try-and-Buy micropayment solution to handset manufacturers and game developers. Since then, we have secured the trust of international brands, such as Samsung, Gameloft, Namco, EA, Sega, Glu Mobile and SAP etc. Since our inception, we have delivered more than 1.5 billion games in 55 countries worldwide!

Following the success of the micropayment solution in the UK, we moved our HQ to Lucerne, Switzerland, under the new company name ‘Emoji Games’ in 2012 and expanded into the mobile advertising and social gaming market. Based on our solid technical background, we produced and launched a unique DIY gaming solution known as Branded Mini-Games (www.brandedminigames.com). This service has grown to be Europe’s most well-known and #1 gamification service provider.

This Game-as-a-Service has served more than 100 brands (mostly international brands such as BMW, Basler Insurance, Samsung, KFC and many others). Gamified marketing campaigns using Branded Mini Games increase daily active users, which in turn results in a greater ROI for ecommerce brands. In the meantime, we have been accredited by Facebook as a Facebook Ap-proved Instant Game Developer.

Based on this diverse and wide ranging experience, know-how and the ownership of multiple intellectual properties of gaming assets we have built since 2005, we issued the blockchain gaming token “POC” in 2018 and received a non-action letter from the Swiss Financial Market Supervisory Authority (FINMA), subsequently launching the Pocket Arena 1.0 as a social eSports service. We are currently upgrading it to Pocket Arena 2.0 and 3.0, which provides a market-place for non-fungible tokens and an NFT minting function within the Pocket Arena Wallet.

Our team is led by the founder and CEO of Emoji Games, Hyong Kim, who is a British national of Korean origin. He is a system architect (he started programming at the age 10) and gaming guru. Emoji Games consists of over 40 employees and contractors who are some of the most experienced people around in solution development, gaming and blockchain industries. We are currently located in six countries (Switzerland, UK, South Korea, Canada, Thailand and Vietnam).

Fig. 33 – Hyong Kim