What is Yield Guild Games (YGG)?

Play-to-earn gaming has become a significant trend in the blockchain space. As games introduce their own tokens and nonfungible tokens (NFTs), they are attracting both players and investors. This trend is further evolving with the rise of gaming guilds, which offer benefits to gamers, investors, and the wider community.

Yield Guild Games (YGG) is a Decentralized Autonomous Organization (DAO) that invests in NFTs used in blockchain games. These games are part of a broader concept known as the metaverse, encompassing digital land, assets, and more within blockchain-based virtual worlds.

The idea of building a global play-to-earn gaming community took shape in 2018. Gabby Dizon, YGG’s co-founder and CEO, noticed the growing interest in blockchain gaming in Southeast Asia. Many gamers wanted to play the popular NFT game Axie Infinity but couldn’t afford to buy the in-game NFT characters called Axies.

Recognizing the potential of blockchain gaming to empower people in developing countries, Dizon began lending his Axies to players who couldn’t afford their own. This experience led him to co-found Yield Guild Games with Beryl Li in 2020, aiming to support gamers in thriving within the world of NFTs and blockchain gaming.

What Does Yield Guild Games Do?

Yield Guild Games (YGG) is a global community of gamers who unite to pursue their shared passion for gaming and investment. Operating on a worldwide scale, the guild helps players earn rewards in play-to-earn titles. YGG also invests in NFTs, such as virtual land and in-game items, which can be loaned to members, providing benefits to both the group and the individuals.

A guild typically spans multiple games and NFTs, attracting a diverse group of players and investors. This fosters a distinctive community where decentralized finance (DeFi) merges with NFTs, creating a metaverse-like economy on the Ethereum blockchain. The project operates in a decentralized manner, governed by smart contracts, embodying the principles of a Decentralized Autonomous Organization (DAO).

YGG isn’t just one DAO; it comprises several smaller organizations. These focus on specific games or cater to players from particular regions. Each has its own set of rules regarding activities and assets. This structure allows members to collaborate effectively, maximizing their gaming rewards and, in turn, benefiting the entire guild.

What Is The YGG Token?

The Yield Guild Games (YGG) token is an ERC-20 token that allows holders to take part in the governance of the YGG DAO. There is a total supply of 1 billion tokens, with 25 million YGG sold through an Initial DEX Offering (IDO) on SushiSwap in 2021. To foster community growth, YGG has allocated 45% of the total supply to be distributed to users gradually over four years.

As the platform’s native token, YGG is used to pay for services within the network. It can be staked to earn rewards in the YGG vaults or to access exclusive content on the YGG Discord channel. Additionally, YGG holders can submit proposals and vote on decisions about the guild’s technology, products, projects, token distribution, and governance structure. Suggestions that are adopted by the DAO will be rewarded with YGG tokens.

YGG Scholarships

To optimize the utility of gaming NFTs, the YGG DAO uses a rental program known as scholarships. This concept, initially introduced by the Axie Infinity community, benefits both NFT owners and play-to-earn gamers.

In Axie Infinity, owners lend their assets to new players in exchange for a share of the in-game rewards. This is managed through blockchain smart contracts, ensuring that scholars can only use the NFTs in-game, while only the owner can trade or transfer them.

Similarly, YGG offers scholarships to new players under a revenue-sharing model. These players receive NFT assets to start playing and earning rewards without any upfront investment, sharing a portion of their earnings with their managers. Besides NFTs, new players get training and guidance from community managers.

YGG scholarships extend beyond Axie Infinity. The YGG Treasury includes virtual lands in The Sandbox and League of Kingdoms, virtual cars in F1 Delta Time, and other play-to-earn games.

SubDAOs

The YGG DAO is primarily composed of SubDAOs, which are localized communities within the main DAO. These groups consist of players from specific games or regions. For instance, there are SubDAOs for Axie Infinity players, The Sandbox players, and Southeast Asian players. By grouping players into these smaller communities, they can share strategies and help each other improve performance.

Each SubDAO manages its respective game’s activities and assets under its own rules but contributes earnings to the YGG DAO. A SubDAO has a community lead, a wallet, and a specific token. Token holders share the yields generated from gameplay and can make and vote on governance decisions related to their SubDAO, such as purchasing more in-game NFTs or managing assets.

YGG Vault

The YGG DAO takes a unique approach to yield farming compared to most DeFi staking platforms. Typically, tokens are staked to earn fixed-rate interest. At YGG, each vault represents a token reward program for a specific activity. For example, one vault might yield returns based on a scholarship program, while another rewards stakers for the Axie breeding program.

YGG plans to develop a super index vault representing all yield-generating activities in its ecosystem. This vault will reward stakers based on the guild’s revenue from subscriptions, merchandise, rentals, treasury growth, and SubDAO performance.

Token holders can stake in the activity they support, with rewards distributed proportionally to the amount of YGG staked via smart contracts. Depending on the vault, rewards might include YGG tokens, Ether (ETH), or stablecoins.

Are Yield Guild Games a Good Investment?

In 2021, NFTs and play-to-earn games on various blockchains became major trends. Gaming, being widely accessible, is seen by many as a potential gateway to making crypto mainstream. Since millions of people enjoy gaming, the idea of earning money through it holds significant appeal.

Blockchain game developments, particularly those involving Yield Guild Games (YGG), could be promising investments. YGG integrates NFTs and blockchain gaming with its own token, which might increase in value over time.

Most guilds prioritize players because a strong community is essential for growth in the crypto market. However, YGG also emphasizes profitability and aims to attract investors. These investors seek substantial returns without needing to spend hours gaming, a requirement often seen in other projects. This makes YGG appealing not just to gamers but also to investors.

YGG stands out in its niche by focusing on investor appeal, potentially providing more financial opportunities and enabling faster growth. The ecosystem is decentralized, operating through a DAO. This combination of elements creates a compelling value proposition for YGG, offering users multiple ways to earn from the crypto guild.

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