An Initial Asset Offering (IAO) is a method of funding blockchain games by raising small amounts of money—whether in fiat currency or cryptocurrency—from a large number of supporters. In return, backers receive in-game blockchain assets.

How IAOs Work

IAOs can be carried out in several ways:

• Crowdfunding platforms such as Kickstarter or IndieGoGo, where players contribute with fiat currency and receive in-game blockchain assets in advance.

• Standalone websites, where contributions are typically made using cryptocurrency such as ETH or ENJ.

In the gaming context, nearly any type of in-game object can be offered in an IAO. Examples include characters, weapons, power-ups, skins, employees, real estate, pets, universes, or even entire currencies.

Traditional Crowdfunding vs. IAOs

In traditional crowdfunding models, gaming assets are stored on centralized servers. If a campaign succeeds but the developers fail to deliver the promised game, backers are left with nothing of value.

IAOs address this problem by ensuring that players receive blockchain assets that already exist at the time of purchase. These assets are backed with ENJ, meaning backers have the option to melt them back into cryptocurrency if a project fails to launch. This built-in safeguard gives players a stronger incentive to support early-stage projects.

Added Layers of Protection

Beyond melt value, IAOs can offer two additional forms of assurance to players:

• Multiverse usability – If an asset is designed for use across multiple games or platforms, it retains practical value even if one game fails.

• Collectible value – Some assets may carry long-term value as digital collectibles. Even if a game is never released, these items could still be traded or sold based on their rarity or appeal, potentially for more than their ENJ backing.