D&D will change to defend against crypto, other forms of exploitation

Wizards of the Coast will publish a new licensing agreement for the next iteration of Dungeons & Dragons, called One D&D, in early 2023. This new framework will only cover written materials, but its existence will impact creators of all stripes — including but not limited to authors, independent publishers, video producers, and actual play troupes.

The announcement, made in a blog post on Dec. 21, comes on the heels of a big year for publishers of alternative D&D content — including high-earning crowdfunding campaigns and even a novel start-up attempting to blend existing D&D content with cryptographic blockchain technology.

Wizards stated that the new licensing agreement remains in development and will launch early in 2023. Last week’s announcement, therefore, is an effort to ease concerns among players and creators alike while lawyers sort things out in the background.

“You all matter to us,” Wizards said on its newly acquired digital platform, D&D Beyond, vowing to “provide transparency on how D&D will continue supporting third-party creators.”

However, the 700-word post is very brief. So let’s unpack what it says, and what it doesn’t say, about the future of D&D.

Photo: Charlie Hall/Polygon

Wizards has a relationship with game content creators using the Systems Reference Document (SRD) which is licensed publicly under the Open Gaming License. Think of the SRD as a truncated version of the larger 5th edition D&D content library — bigger than what comes in your basic Starter Set, but far smaller than what is available inside the core D&D rulebooks like the Player’s HandbookAnd the Dungeon Master’s Guide. That content is legally exposed to the gaming public, through the terms set forth in the OGL, as a resource for creating new content compatible with the D&D ruleset.

Wizards claims that OGL doesn’t provide sufficient detail in current form.

“The OGL needs an update to ensure that it keeps doing what it was intended to do,” Wizards said, which is “allow the D&D community’s independent creators to build and play and grow the game we all love — without allowing things like third-parties to mint D&D NFTs and large businesses to exploit our intellectual property.”

Image: Gilmore’s Glorious Goods/Ten Speed Press/Random House

The SRD and the OGL are nearly a decade old at this point, created in the lead-up to the launch of 5th edition D&D in 2014. Since then, a lot has changed. D&D is more popular than ever before, of course, thanks in part to a resurgence of interest in tabletop role-playing brought on by shows like Stranger Things Important Role. The actual performance of play has grown to be a lucrative segment in the entertainment business. High-profile projects based on 5th edition D&D rules, such as Blizzard executive Chris Metzen’s The Coils of the Serpent: AuroborosCrowdfunding is a great way to make serious cash. Meanwhile, a startup called Gripnr is intent on “building 5e TTRPG on-chain,” applying cryptographic blockchain technology — somehow — to D&D.

You can imagine an executive at Hasbro in the corner of an office having a panic attack. This type of homegrown competition can make a big difference in the future direction of media brands. Look no further than Metzen’s own Warcraft, which helped to give birth to video gaming’s MOBAs nearly 20 years ago. This is the MOBA, which has become a worldwide phenomenon. League of LegendsAs the The Defense of the Ancients Modification Warcraft III — a mod that ultimately grew outside of Blizzard’s control to become a major competitor to franchises like Warcraft, Starcraft, and Diablo.

Viewed from that perspective, Wizards’ announcement makes a lot of sense. Hasbro needs to protect itself from potential competition arising from within its own community of players and fans, and that’s going to mean some changes to the status quo — especially as D&D steps off into a digital future.

Image by EN Publishing

But D&D is a naturally creative pursuit. To grow D&D, both hobbyists and smaller creators need access to the Systems Reference Document. Wizards stated that any changes to the Open Gaming License would be welcomed. Only apply to “material created for use in or as [tabletop role-playing games].” Of course, that naturally excludes… well… literally everything else.

“Other types of content, like videos and video games, are only possible through the Wizards of the Coast Fan Content Policy or a custom agreement with us,” Wizards said. “To clarify: Outside of printed media and static electronic files, the OGL doesn’t cover it.”

Wizards sets benchmarks to determine how much money can be made using OGL-related content. Wizards of the Coast must be notified if creators make more than $50,000 a year through SRD-related projects. A new royalty program will be introduced for those who earn more than $750,000 per year, and it will start in 2024.

What that means for the thousands of YouTubers, Etsy creators, 3D modelers, and small-time actual-play troupes who earn a modest income from work based on D&D remains unclear. Although the OGL has been revised and is being updated, it is not finalized. Wizards will attempt legal action to support it in the future. You will need to pay Wizards each time you make a resin d20 for a customer. No, that’s absurd. But, in the future, if your home campaign spawns an animated series on Amazon, or your nifty new setting ends up making you millions on Kickstarter, you can expect Wizards of the Coast’s lawyers to come calling.