Gray market trading refers to the practice of re-selling in-game assets (e.g., items, skins, vehicles) on third-party marketplaces that are not owned or controlled by game developers. Because gray market sellers often sell items for a fraction of the cost compared to in-game stores, players will often purchase from them regardless of the long-term cost to the game.
Gray market trading can result in a loss of up to 40% of a developer's total revenue.
The Enjin Platform enables you to regulate or eliminate gray market trading, recapture lost profits, and monetize trading by implementing blockchain-enforced trading fees.
Using bound tokens (items locked to a specific user address) and whitelists, you can define specific channels and locations where trade is allowed. For example, you may encourage users to trade through a network of approved marketplaces and block trade from occurring elsewhere, while also implementing trading fees on all transactions that take place in those approved marketplaces.