Understanding Google Play Store's New Blockchain Policies

Introduction

Google's recent update to its blockchain-based content policy has been eagerly anticipated by developers and advisors in the blockchain space. With increased interest in Web3 applications and tokenized digital assets, clear policies are essential to provide guidance and ensure compliance. Our team at?Economics Design?is excited about this development, as it will help both developers and users navigate the evolving landscape of blockchain apps on the Google Play Store.

Key Topics This Article Will Cover:

1. New Google Play Store Blockchain Policies Overview
2. Policy #1: Cryptocurrency Exchanges and Software Wallets
3. Policy #2: Transparency Requirements for Distributing Tokenized Digital Assets
4. Policy #3.A: Additional Requirements for NFT Gamification
5. Policy #3.B: Additional Requirements for NFT Gamification Continued
6. Understanding Policy Interpretations and Compliance

New Google Play Store Blockchain Policies Overview

Effective?December 7th, 2023,?Google's latest blockchain content policies are set to prioritize consumer protection and transparency. Google's blockchain content policies are designed to establish a more secure and transparent environment for blockchain apps on the Play Store. As these policies are intentionally kept vague for enforcement flexibility, our team at Economics Design has thoroughly reviewed and analyzed the key points to help developers understand their implications.

Before delving into the policies, it is crucial to note that this article presents a preview of the rules that will be effective in December. Any updates or changes to these policies will be promptly communicated to ensure developers stay informed.

Policy #1: Cryptocurrency Exchanges and Software Wallets

“The purchase, holding or exchange of cryptocurrencies should be conducted through certified services in regulated jurisdictions.”

To ensure compliance, developers using their own noncustodial wallets to onboard new users to the Web3 space must demonstrate compliance with relevant local regulations. Google review teams may request documentation supporting adherence to jurisdiction-specific wallet regulations.

Policy #2: Transparency Requirements for Distributing Tokenized Digital Assets

“If your app sells or enables users to earn tokenized digital assets, you must declare this via the financial features declaration form on the app content page in Play Console.”

If your app includes systems that enable players to stake and earn tokens or utilise their NFTs to earn blockchain rewards, it is essential to declare these features in the app settings specifically for that product.

Policy #3.A: Additional Requirements for NFT Gamification

“Anything of monetary value should not be accepted in exchange for a chance to obtain an NFT of unknown value. NFTs bought by users should be consumed or used in the game to enhance a user’s experience or aid users in advancing the game.”

To comply with Policy #3.A, developers must ensure that their apps do not involve transactions of monetary value for a chance to obtain NFTs of unknown worth. When assessing compliance, regulators typically consider three key elements in gambling activities:

1. Consideration: Participants must provide something of value, such as payment, wager, or an item with "monetary value," to participate in the activity.
2. Chance: The outcome of the activity should predominantly depend on chance rather than skill, meaning participants have little control over the result, which is determined randomly.
3. Prize: Participants must have the opportunity to win or obtain a reward with monetary value.

To maintain compliance, developers can strategically remove one or more of these elements from their apps. Here are potential approaches:

In Terms of Consideration:

• Provide the NFT entry without any cost, or distribute it as a reward for completing missions or achieving top positions in the leaderboard.
• It is also important to implement tight supply controls on assets distributed for free to maintain their value and ensure players contribute to the ecosystem in other ways to justify the free distribution.

In Terms of Chance:

• Eliminate randomness by allowing players to purchase predetermined NFTs with fixed attributes. When the NFT is created with fully deterministic stats right from the start, there is no involvement of chance in the process. For instance, players could buy a sword with a guaranteed +10 attack bonus or a blue and white hat with purple trim.

In Terms of Price:

• Design the app so that the NFT is rewarded through actions within the core game loop. Offer rewards for in-game actions that can be used to obtain a voucher for minting an NFT.
• However take note to ensure players cannot directly purchase the NFT, which should only be earned through in-game actions. This makes the acquisition dependent on gameplay and retention.
• A player can pay for game activities within which they have earned the reward, but these activities must be a normal and expected part of the game loop.
• For instance, a developer could introduce a loyalty pass system where players would receive daily rewards for actively engaging with the app, and one of the rewards offered through the pass could be a new NFT.
• In this scenario, the player is not directly purchasing the NFT; instead, gameplay and retention are necessary to obtain the reward.
• Developers could also introduce random rewards, including NFTs, as part of the player's prize list, enhancing the engagement and excitement for users.
• However, if the player directly pays for a treasure box (via inapp currency purchased with real money) and that box contains a voucher for an NFT, it would not be allowed. This is because the player is directly purchasing the voucher in the store and not acquiring it through normal gameplay.

It's essential for developers to avoid scenarios where players directly pay for a treasure box that contains a voucher for an NFT, as this would be against Google's policies. Instead, the focus should be on engaging users in expected actions within the app, leading to NFT rewards without the involvement of chance or direct purchases.

Policy #3.B: Additional Requirements for NFT Gamification Continued

“NFTs must not be used to wager or stake in exchange for the opportunity to win prizes of real-world monetary value (including other NFTs).”

Our interpretation of this policy is that developers are prohibited from mandating users to burn or stake NFTs as a means to participate in activities where they could win blockchain assets, whether it be another NFT or a token. For instance, developers cannot force players to stake their NFTs as a requirement to join a poker game, where they might have the chance to win tokens or new NFTs.

It's important to acknowledge that policy interpretations can vary, and the precise compliance requirements may differ for each app. To ensure adherence to Google's guidelines, we strongly advise developers to consult the specific policy guidelines and seek guidance from a relevant review team.

Conclusion

Google's new blockchain content policies represent a significant step forward in ensuring consumer protection and transparency in the blockchain space. Understanding the nuances of these policies will be essential to create innovative and engaging blockchain apps while adhering to Google's guidelines.

At Economics Design, we understand the importance of complying with platform policies while offering innovative and engaging experiences for users. Our team is committed to providing personalized guidance to help you navigate these policies and develop blockchain apps that resonate with your audience while adhering to Google's content rules.

Thanks for reading Economics Design Newsletter! Subscribe for free to receive new posts and support our work. If you have specific questions about how these policies may impact your particular project, reach out to our consulting team. We will be delighted to offer personalized guidance and assistance to ensure your app's success on the Google Play Store.

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