Mechanics on the Blockchain: A Taxonomy of NFTs in Games

This paper by Jack Murray and Anastasia Salter, both of the University of Central Florida, proposes a taxonomy for understanding how non-fungible tokens (NFTs) are being integrated into game design and monetization. Its central argument is that NFTs represent the latest iteration of long-standing efforts to create ongoing revenue streams around digital ownership, and that they risk amplifying existing concerns about gambling-adjacent practices such as loot boxes and random reward mechanisms. The authors position their work as a starting point rather than a comprehensive account, situating blockchain gaming within a historical trajectory that runs from analog collectible card games to digital virtual pets and trading markets.

The paper traces early milestones in the relationship between games and blockchain, beginning with CryptoKitties, released in 2017, which introduced buying, selling, and trading of virtual pets and spurred imitators. Other early adoptions include blockchain-based scavenger hunts and collectible card game markets, while the January 2021 GameStop stock episode is cited as a moment that further tied gaming culture to cryptocurrency speculation. The authors' proposed taxonomy identifies five primary categories of NFT implementation: collectibles valued for rarity and resale, reusable object items that function across platforms, aesthetic customizations offering exclusive ownership, access tokens granting entry to games or communities, and commodities that enable real-money transactions and player-to-player transfers.

The methodology is primarily conceptual and historical rather than empirical, drawing on existing scholarship and industry reporting rather than original survey or sample data. Its scope is focused on early NFT adoption in digital games and the design incentives underlying these models. The paper concludes that the commodity category presents the greatest regulatory challenges, noting divergent platform policies, with Valve banning NFTs on Steam while Epic Games permitted their use, and anticipates escalating disputes over how blockchain-reliant play should be governed.