The FunFair Economy (Part 1)

The FUN token is the underlying currency of FunFair’s gaming economy.

The supply is finite by design. A set number were created once during the Phase 1 Token Presale, and no more will ever be created. The total number in existence will also reduce over time as tokens are burned through a number of network processes. The FUN token powers every aspect of the FunFair ecosystem, and enables gaming operators to offer a variety of distributed gaming models to their audiences.

FunFair’s decentralised casino games bring gaming into the 21st Century by disrupting traditional land based and online casinos in a number of ways, and these bring value to the underlying economy.

This blog post addresses the value added to tokens as the ecosystem develops over time.

Who is the fairest of them all?

FunFair offers unrivaled fairness. No rogue operators, no rigged games, no risk of interference. Total control over game security, data security and payments. For the first time, end users – the casino player – can be certain, instead of having faith, that they’re getting a fair deal.

By using Ethereum Smart Contracts and our own internally developed Fate Channels to execute each game, and the Ethereum blockchain to publicly record each result, our platform delivers provable fairness and full transparency without any loss of efficiency or time. More on the science behind this in a future blog post.

Our provable fairness extends beyond the existing initial deterministic random number generation to ensure neither the house nor players can tamper with our games. FunFair has designed every aspect of the game provably fair at a granular level – with play by play trustless verification.

There can be no means of dishonest play from either the operator or player.

Fair play, fair competition makes better business

The traditional online gaming world is currently dominated by a handful of major operators.

Strict regulation, compliance and licensing mean that even with a loyal audience, smaller operators struggle to compete. Often prohibitive operating costs squeeze margins and reduce competition. Trusting small or new operators is an issue for players and affiliates alike.

With FunFair, becoming an operator is quicker and easier than ever before. Players won’t need to make a judgement about the trustworthiness of an operator. They can simply play with absolute certainty of the integrity of each game, and of the automated, decentralised payments system that the FUN tokens enables.

If it can be bet, it can be won

FunFair’s platform makes it impossible for operators or developers to alter the game payout mechanics, and for players to defraud the house. The operator can therefore focus many of the resources previously dedicated to payments, support and infrastructure to marketing, growth and regional compliance. Along with obvious benefits to the house and the player, these new levels of transparency can also offer regulators ideal solutions in their quest for operator integrity and player protection.

Unlike traditional online casinos and first-generation cryptocurrency casinos, players will fund games directly from their FUN token wallet. This greater degree of control over their funds delivers both enhanced levels of protection from inefficient, rogue or bankrupt operators, plus an improved user experience with none of the traditional delays in cashout processing times. For operators, this eradicates the onus on transaction processing, and removes the cost of fraudulent activity and chargebacks.

Removing the need to send funds to an operator wallet and instead playing direct from your own further protects players by reducing the risks of error in sending funds, those funds being intercepted or operator wallets being compromised.

FunFair’s Fate Channels lock into the smart contract funds wagered by the player and put up by the operator for the duration of the session, and those funds can only be released to either the player or the operator once the game outcome has been determined, and the Fate Channel has been closed.

While the player commits their wager to the contract, the operator must also provide the maximum sum that the player can win, to ensure automatic payment whatever the outcome (e.g. in casino games such as slots where a range of payout odds is possible). This ensures the operator is actually able to commit the funds that can be won. And should the player win, they are immediately paid their winnings along with their original wager.

This is in stark contrast to the issues that can arise when significant sums are won in traditional online casinos who offer huge progressive jackpots. Some operators are not in a position to – or seek to avoid or delay – paying out, using terms & conditions to pay in smaller installments after significant gameplay and background verification.

Many of the largest promised jackpot games – Megabucks, Wheel of Fortune, Jeopardy, The Price is Right – pay out jackpots as an annuity over 25 years, with no recourse should a player ask for the full sum.

With FunFair’s games, the smart contract removes much of the administration, cost and friction on both sides of the wager, simply releasing funds to the appropriate party once the games has ended.

With FunFair then, if the player can bet, they can win.

Alex Lawn

Part 2 of this article, which focuses on the benefits of the features outlined above, will be published soon. To discuss this article with its author, join the FunFair Discord group.