PeerPlays is a provably fair and auditable betting platform that runs on a modified version of the Graphene blockchain, the same blockchain used by BitShares. Users can design their own specialized tokens, buy or sell gateway tokens for other popular tokens, and wager the native PPY token in on-chain games. Players are matched with other users for peer-to-peer gameplay through a series of smart contracts. These contracts escrow the funds wagered by each player, which are then released to the winner after specific conditions in the game are met. The PeerPlays network earns revenue from various operations, including the creation and trading of digital asset tokens by users, the performance of certain custom operations, and most notably from the “rake” or the percentage of each jackpot that is collected as a fee. The blockchain automatically splits this revenue into a virtual account governed by a smart contract that distributes the fees in three directions. The largest percentage is distributed to PPY token holders at regular intervals.