CHESSX LITEPAPER

Overview

ChessX is a free-to-play mobile chess app that turns traditional chess into a lifelong learning platform with light blockchain rewards – without becoming another failed "play-to-earn" casino.

The entire experience stays web2-smooth (fast matchmaking, no wallet friction for core play). Only two things live on-chain:

• Collectible NFT chess pieces with AI support powers (learning tools with cosmetic/cool factor).
• A single fungible token ($LRN) that rewards real engagement.

Early Access screenshots

Vision

The future of meaningful human activity is learning. As robotics and AI transform labor markets, platforms that reward cognitive growth – rather than monetize attention – will define the next era of digital engagement. ChessX returns value to players proportional to their investment in themselves. The result is a sustainable GameFi model that actually teaches skills instead of monetizing them.

Token Flywheel

No hype, no "moon" – just a clear, self-reinforcing economy where every player action adds real value to the ecosystem:

CHESSX LITEPAPER

Core Loop

Play chess → earn Gems instantly for every meaningful action and engagement – not just wins.

Play & Earn Gems (example)

Gems are capped daily and weekly – no infinite farming. Caps will be relaxed once a baseline sustainable loop is established.

Gems → $LRN

At the end of each month, all unspent Gems auto-convert into $LRN and loyalty points.

Why the $LRN Token Has Value

• Real buy pressure comes from in-game progression: players pay in fiat to unlock higher levels and stronger AI pieces faster.
• Post-operational fiat revenue is used for automatic buyback + burn of $LRN (Hyperliquid-style mechanism).
• Total supply is fixed at 1 billion with a slow vesting schedule for team/advisors (3–5 years) and built-in deflation via burns to increase the $LRN token lifespan and value.

CHESSX LITEPAPER

Tokenomics

Token Basics

Allocation

A clean 5% is carved out for public sale so everyday players and small investors can get in early. Everything else is structured to keep team skin-in-the-game strong.

CHESSX LITEPAPER

Token Utility

The token is not the game. It's a user acquisition and retention strategy based on transparently sharing platform revenues with our community.

CHESSX LITEPAPER

NFT Pieces

NFTs are not part of the revenue model and give zero financial advantage to players. They're just cool chess pieces with AI powers that players can collect because it feels good.

NFT AI Piece Types (multichain, ERC-721)

• Standard Pieces (Common, Rare, and Epic) – unlimited level 1 mints become scarce at higher levels.
• Limited Pieces – fixed supply of special sets from events, anniversaries, etc.

How NFTs Support the Token

• Secondary market royalty: 5% fee on every resale → 100% goes to automatic $LRN buyback & burn (same Hyperliquid mechanism as fiat upgrades).
• Optional staking: Lock any NFT for 30 days → +3% gem earning boost (tiny, capped, doesn't affect leaderboards). Higher level pieces get higher level boosts.
• Limited edition drops tied to real chess milestones (e.g., "1 million games played globally") – creates FOMO without pay-to-win.

NFT Utility

CHESSX LITEPAPER

How ChessX is Different

Anti-Ponzi Design

• Chess cannot be "won" by cheating for rewards – rewards are engagement-based, not win-based.
• The game remains permanently free for pure learners – no paywall on basic play or AI training.
• NFTs are optional vanity + learning tools to boost engagement and fun without becoming a crutch (AI is not the same for white and black pieces).
• Revenue is real (fiat from optional upgrades + future cosmetics), not circular token selling.

CHESSX LITEPAPER

Partners

ChessX is developing partnerships with the following teams to scale along with the best ideas in web3:

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Contracts

https://github.com/chess-x/contracts

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FAQ

How do I earn?

1. Players can mint free NFT Hero chess pieces and then upgrade them with time or money before selling them to another player.
2. Players can stream to earn USDT and extra loyalty points and tokens.
3. Player Gems convert to $LRN at the end of each month. We accrue value to the token through governance, in-game utility, and buy-back-and-burn mechanics.

How will you stop cheating?

We disincentivize cheating with game design – wins do not help you earn any faster, but cheaters do lose the educational benefits of their time investment. We also implement industry standard anti-cheat algorithms and keep the stakes low per-game to reduce the benefits of cheating. More details here.

When will the game be ready?

The Alpha is currently available in early-access to select community members. Please join our Discord to learn more.

CHESSX LITEPAPER

Risks

RISKS RELATED TO SECURITY OF OUR GAMING PLATFORM. HACKERS OR OTHER MALICIOUS GROUPS OR ORGANIZATIONS MAY ATTEMPT TO INTERFERE WITH THE CHESSX PLATFORM IN A VARIETY OF WAYS, INCLUDING, BUT NOT LIMITED TO, MALWARE ATTACKS, DENIAL OF SERVICE ATTACKS, CONSENSUS-BASED ATTACKS, SYBIL ATTACKS, SMURFING AND SPOOFING. SUCH ATTACKS MAY RESULT IN THEFT OF THE NFTS AND/OR THE REWARD TOKENS. THERE IS ALSO AN INHERENT RISK THAT THE SOFTWARE AND RELATED TECHNOLOGIES AND THEORIES THE COMPANY USES COULD CONTAIN WEAKNESSES, VULNERABILITIES OR BUGS ("GLITCHES"). GLITCHES COULD CAUSE, AMONG OTHER THINGS, COMPLETE LOSS OF THE NFTS PURCHASED BY USERS OR THE REWARD TOKENS EARNED BY USERS.

RISKS RELATED TO BLOCKCHAIN TECHNOLOGY. THE COMPANY'S BUSINESS WILL BE DEPENDENT ON BLOCKCHAIN TECHNOLOGY, WHICH CARRIES CERTAIN RISKS. THE BLOCKCHAIN IS A DISINTERMEDIATING TECHNOLOGY THAT HAS THE POTENTIAL TO FACILITATE TRUST AND COMMERCE BETWEEN ECONOMIC ACTORS, WHETHER INDIVIDUALS OR COMPANIES. PUBLISHED IN 2008 BY SATOSHI NAKAMOTO, THE BITCOIN WHITE PAPER DESCRIBES A PAYMENT SYSTEM THAT ALLOWS INDIVIDUALS TO CONFIDENTLY TRANSACT WITH ONE ANOTHER WITHOUT KNOWING OR TRUSTING ONE ANOTHER AND WITHOUT INVOLVING A TRUSTED THIRD PARTY. BITCOIN WAS DESIGNED TO BE WITHOUT A CENTRAL POINT OF FAILURE AND SECURED BY CRYPTOGRAPHY AND MATHEMATICS, RATHER THAN TRUST IN A CENTRALIZED THIRD PARTY, FOR EXAMPLE. THIS CONCEPT OF A DECENTRALIZED ARCHITECTURE IS NOVEL AND INTENDED TO ALLOW INDIVIDUALS TO FREELY AND RAPIDLY TRANSACT WITH ONE ANOTHER REGARDLESS OF GEOGRAPHIC CONSTRAINTS. THE PHRASE "SMART CONTRACT" WAS COINED BY COMPUTER SCIENTIST NICK SZABO IN 1994 TO EMPHASIZE THE GOAL OF BRINGING WHAT HE CALLED THE "HIGHLY EVOLVED" PRACTICES OF CONTRACT LAW AND RELATED BUSINESS PRACTICES TO THE DESIGN OF ELECTRONIC COMMERCE PROTOCOLS ON THE INTERNET. PROPONENTS OF SMART CONTRACTS CLAIM THAT MANY KINDS OF CONTRACTUAL CLAUSES MAY THUS BE MADE PARTIALLY OR FULLY SELF-EXECUTING, SELF-ENFORCING OR BOTH. SMART CONTRACTS AIM TO PROVIDE SECURITY SUPERIOR TO TRADITIONAL CONTRACTS AND TO REDUCE OTHER TRANSACTION COSTS ASSOCIATED WITH CONTRACTING. SMART CONTRACTS IN THE FORM OF DIGITAL "TOKENS" LIKE THE TOKENS CAN NOW REPRESENT ANY TRADABLE ASSET. AS SUCH, DIGITAL TOKENS HAVE EMERGED AS A NEW ALTERNATIVE CHANNEL FOR COMPANIES TO RAISE FUNDS AND AS AN ENTIRELY NEW ASSET CLASS FOR INVESTORS. ACCORDINGLY, WHILE BUSINESSES BUILT ON BLOCKCHAIN-BASED TECHNOLOGY AND DIGITAL ASSETS MAY PRESENT INVESTMENT OPPORTUNITIES, THEY ALSO REQUIRE A HIGH DEGREE OF INVESTING SOPHISTICATION AND SPECIALIZATION AND DIFFERENTIATION BETWEEN WELL- AND POORLY- CONSTRUCTED OFFERINGS–ESPECIALLY IN REGARDS TO UNDERLYING BUSINESS MODEL; TOKEN ECOSYSTEM FUNCTIONALITY; INCENTIVE ALIGNMENT; PRODUCT-MARKET FIT; TOKEN MARKET AND LIQUIDITY; AND LEGAL, REGULATORY AND FINANCIAL MECHANICS. IN THE CASE OF THE COMPANY, THE EXACT BUSINESS MODEL CONTINUES TO EVOLVE.

RISKS RELATED TO THE REGULATORY ENVIRONMENT. THE NFTS AND THE REWARD TOKENS (THE "DIGITAL ASSETS") MAY BE DEEMED TO BE SECURITIES UNDER U.S. AND STATE SECURITIES LAWS AND LAWS OF OTHER JURISDICTIONS. THE NFTS ARE INTENDED TO BE VIRTUAL, CRYPTOGRAPHIC COLLECTIBLES. WE BELIEVE THEY ARE GOODS AND UTILITY TOKENS FOR USE AND CONSUMPTION AND PRESENT THE SAME USE CASE AND CONSUMPTIVE PURPOSE AS TRADING CARDS HAVE BEFORE. AS PART OF THAT EXPERIENCE, WE INTEND TO ALLOW THE NFTS TO BE PURCHASED AND SOLD ON CHESSX PLATFORM. IN OUR OPINION, THE BUYING AND SELLING OF THE NFTS, EVEN IN THE HOPE THAT THE PRICE WILL INCREASE, DOES NOT INVOLVE THE TRADING OF A SECURITY. TO DETERMINE WHETHER ANY OF THE DIGITAL ASSETS CONSTITUTE SECURITIES, THEY NEED TO BE ANALYZED AS "INVESTMENT CONTRACTS" UNDER THE U.S. SUPREME COURT'S DECISION IN SEC V. W.J. HOWEY CO., 328 U.S. 293 (1946) ("HOWEY") AND ITS PROGENY. UNDER HOWEY, AN INSTRUMENT IS AN "INVESTMENT CONTRACT" AND, THUS, A SECURITY, IF THE PURCHASER MAKES AN INVESTMENT OF MONEY IN A COMMON ENTERPRISE WITH AN EXPECTATION OF PROFIT DERIVED PRIMARILY FROM THE ENTREPRENEURIAL OR MANAGERIAL EFFORTS OF OTHERS. WE DO NOT BELIEVE THE SALE OF NFTS OR THE NFTS THEMSELVES, NOR THE EARNING OF THE REWARD TOKENS OR THE REWARD TOKENS THEMSELVES CONSTITUTE AN INVESTMENT CONTRACT. IF THE DIGITAL ASSETS OR THE OFFER AND SALE OF THE DIGITAL ASSETS WERE DEEMED TO BE A SECURITY UNDER U.S. FEDERAL SECURITIES LAWS, THEN WE MAY BE REQUIRED TO REGISTER EACH ISSUANCE UNDER THE SECURITIES ACT OR RELY ON AN EXEMPTION THEREFROM. EITHER PROCESS WOULD RESULT IN SIGNIFICANT DELAYS AND COSTS THAT COULD REQUIRE THE COMPANY TO CEASE OPERATION OF CHESSX PLATFORM. IN ADDITION, THE COMPANY MAY BE SUBJECT TO PENALTIES FOR PROMOTING THE SALE OF UNREGISTERED SECURITIES. THE BUSINESS OF THE COMPANY IS SUBJECT TO COMPLEX AND EVOLVING U.S. AND OTHER FOREIGN LAWS AND REGULATIONS REGARDING PRIVACY, TECHNOLOGY, DATA PROTECTION AND OTHER MATTERS, MANY OF WHICH ARE SUBJECT TO CHANGE AND UNCERTAIN INTERPRETATION, AND COULD RESULT IN CLAIMS, CHANGES TO OUR BUSINESS PRACTICES, INCREASED COST OF OPERATIONS OR OTHERWISE HARM OUR BUSINESS. WE ARE SUBJECT TO A VARIETY OF ADDITIONAL LAWS AND REGULATIONS IN THE U.S. (INCLUDING NEW YORK'S BIT LICENSE LAW) AND ABROAD THAT INVOLVE MATTERS CENTRAL TO OUR BUSINESS, INCLUDING USER PRIVACY, BLOCKCHAIN TECHNOLOGY, DATA PROTECTION AND INTELLECTUAL PROPERTY, AMONG OTHERS. THESE U.S. FEDERAL AND STATE AND FOREIGN LAWS AND REGULATIONS ARE CONSTANTLY EVOLVING AND CAN BE SUBJECT TO SIGNIFICANT CHANGE. IN ADDITION, THE APPLICATION AND INTERPRETATION OF THESE LAWS AND REGULATIONS ARE OFTEN UNCERTAIN, PARTICULARLY IN THE NEW AND RAPIDLY EVOLVING INDUSTRY IN WHICH WE OPERATE. WE PLAN ON ADOPTING POLICIES AND PROCEDURES DESIGNED TO COMPLY WITH THESE LAWS AND REGULATIONS IN THE U.S. AND ABROAD. THE RISK OF THE COMPANY BEING FOUND IN VIOLATION OF THESE OR OTHER LAWS AND REGULATIONS (BOTH THE U.S. AND ABROAD) IS FURTHER INCREASED BY THE FACT THAT MANY OF THEM HAVE NOT BEEN FULLY INTERPRETED BY THE REGULATORY AUTHORITIES OR THE COURTS AND ARE OPEN TO A VARIETY OF INTERPRETATIONS. ANY ACTION BROUGHT AGAINST US FOR VIOLATION OF THESE OR OTHER LAWS OR REGULATIONS, EVEN IF WE SUCCESSFULLY DEFEND AGAINST IT, COULD CAUSE US TO INCUR SIGNIFICANT LEGAL EXPENSES AND DIVERT OUR MANAGEMENT'S ATTENTION FROM THE OPERATION OF OUR BUSINESS. IF OUR OPERATIONS ARE FOUND TO BE IN VIOLATION OF ANY OF THESE LAWS AND REGULATIONS, WE MAY BE SUBJECT TO ANY APPLICABLE PENALTY ASSOCIATED WITH THE VIOLATION, INCLUDING CIVIL AND CRIMINAL PENALTIES, DAMAGES AND FINES, WE COULD BE REQUIRED TO REFUND PAYMENTS RECEIVED BY US, AND WE COULD BE REQUIRED TO CURTAIL OR CEASE OUR OPERATIONS OR MODIFY OUR PRACTICES, PROCEDURES OR FEATURES OF THE CHESSX PLATFORM. ANY OF THE FOREGOING CONSEQUENCES COULD SERIOUSLY HARM OUR BUSINESS AND ITS FINANCIAL RESULTS. THESE EXISTING AND PROPOSED LAWS AND REGULATIONS CAN BE COSTLY TO COMPLY WITH AND CAN DELAY OR IMPEDE THE DEVELOPMENT OF NEW PRODUCTS AND WORK ON THE CHESS X PLATFORM, RESULT IN NEGATIVE PUBLICITY, INCREASE OUR OPERATING COSTS, REQUIRE SIGNIFICANT MANAGEMENT TIME AND ATTENTION, AND SUBJECT US TO CLAIMS OR OTHER REMEDIES, INCLUDING FINES OR DEMANDS THAT WE MODIFY OR CEASE EXISTING BUSINESS PRACTICES.