Originally coming from the word "pwnd" but this form of it is acceptable as well most likely because this is how you pronounce it.
The word itself means humiliating/defeating/achieving significant victory over someone, but this is how druids in World of Warcraft say "pwnd" due to them being able to shift into forms like cat/bear which have paws.
1. To sell an item; see Fence, Sell, Barter
2. A chess move, where one player's pawn takes an opponent's king.
3. To triumph over an opponent or opponents, similar to def. 2; see Owned, Pwned(slang).
1. Something given as security for a loan; a pledge or guaranty.
2. The condition of being held as a pledge against the payment of a loan: jewels in pawn.
3. A person serving as security; a hostage.
4. The act of pawning.
Defined as,
- A chess piece of lowest value that may move forward one square at a time or two squares in the first move, capture other pieces only on a one-space diagonal forward move, and be promoted to any piece other than a king upon reaching the eighth rank.
- A person or an entity used to further the purposes of another
In the second example, we can see how the idea of "Pawnage" can be used as a legitimate meaning behind "Pawned", "Pwned", or otherwise. Those whom you own contribute to your score in games, your social status in person, or whatever else you can apply it to. Thus, you're using someone as a pawn for your overall benefit.
"I went to the Pawn Shop to pawn my jewelery."
"I pawned this guy on CS:S."
"You are actually more elite if you've used pawn instead of pwn for the reasons behind my (the, actually) definition."