Gameplay: A strategy RPG, but from a side-view perspective, though the classic grid is maintained. Look up the games "Fetus" and "suteF"; that's how movement works. You have homunculi as units, which you animate with badges. The pawn badge gives no benefits, it just brings the homunculus to life. The rook gives defensive abilities, the knight offensive and mobility abilities, and the bishop magical abilities. The queen badge gets some of everything. The king badge grants a special "leadership" ability and you must have a king assigned to enter a battle. If the king's defeated, all the other units are much less powerful. The chessiness is in the units and the grid.
Story: You're playing as, more or less, a ball of will created by a feuding angel and devil, equal parts "good" and "evil". You're the advisor to a weak-willed, milquetoast alchemist. Your goal is to make your little badge army powerful by taking a "token" from the most powerful warriors across the land, the token being the basis of the homunculus (it becomes a sort of clone of the token's original owner). Tokens can either be given as gifts or taken from a corpse. The chessiness is in the idea of black and white morality, but the proper way is probably (gunmetal) grey.