The International Game Developers Association (IGDA), a professional group of thousands of game makers from around the world, is increasingly concerned that the “ethical issues” surrounding the use of non-fungible tokens in gaming represents a “socio-political explosion waiting to happen.”
IGDA recently issued a “call to action” statement on NFTs in gaming, which was critical of the technology and focused on the “energy inefficient methods” inherent to the proof-of-work blockchains that dominate the crypto and NFT space.
“NFTs should never be used [by game developers] when a simple and far less costly database table can be managed to provided the same information and benefits,” said the group.
The group’s interim director, Dr. Jakin Vela, expounded on some of the major issues that come with NFT gaming. Among those issues is the prevalence of NFT-based “pyramid schemes,” where new money from later players is required to increase the value of highly speculative NFT purchases from early players. Beyond that kind of economic structure, though, Vela said “there’s also the ethical issues of a have/have-not creation” in NFT gaming economies, where “power differentials can play a key component.” There’s a major risk, Vela said, that NFT-based games could divided players into those “who maybe use it as a means for employment” and “others [who] can just as easily take advantage.”
While some view the crypto marketplace as a libertarian paradise free from restrictive government regulations, Vela sees that factor as a major potential vulnerability for gamers. Players who try to earn money through NFT gaming face a situation where “their resources—their entire investment in their employment activities—are reliant on this unregulated, really uncertain future ecosystem,” he said, “and it can put people in some murky waters, I think.”
Vela said the IGDA is working on a more focused statement addressing issues that touch on “more than just the environment.” The group is “having recurring meetings to ensure that we’re understanding all aspects of it.” Those meetings might be necessary because, as Vela puts it, there’s “a lot of technical jargon that leaves even a lot of intelligent people thinking, ‘Wait, but what? But why? I’m buying a receipt for what?’… If things were demystified for people, it would be a bit easier to understand and it would help inform individual decisions.”
(All information was provided by Ars Technica)

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