Do you know what Yield Guild Games is? Following the undisputed success of Axie Infinity, the play-to-earn (P2E) blockchain gaming industry has been on the rise and numerous users have joined the trend. Such P2E trend has attracted numerous users from all over the world, however, not all gaming NFTs are affordable for many players, especially in developing countries.
Yield Guild Games has set as its main goal to develop a P2E community to offer users a solution for those players who cannot access the NFT. In this way, everyone will have access and will be able to take their first steps with NFT games.
The first thing we should know is that Yield Guild Games (YGG) is a Decentralized Autonomous Organization or DAO that focuses on investing in non-fungible tokens or NFTs that will later be employed in blockchain-based games. As we well know, NFT games are part of a much larger concept known as “metaverse”. Metaverses are a set of elements that are part of a digital world based on blockchain technology. Among these elements we can find almost anything, from digital assets to land parcels and much more.
History of Yield Guild Games
The story of Yield Guild Games began in 2018 when the idea of creating a global play-to-earn gaming community came up. Gabby Dizon, who is the co-founder and current CEO of YGG, realized that video games to earn cryptocurrencies were becoming a trend in Southeast Asia. By that time there were not few gamers who were thinking of starting to participate in the very popular game of the moment; Axie Infinity. However, many of them had a common problem and that was that they did not have the necessary funds to buy the game’s own NFT characters, known as Axies.
Going back to Gabby Dizon, this developer thought that blockchain video games were not only a method of entertainment, but also represented an empowerment tool for those living in developing countries. Therefore, Dizon decided to start making loans of his Axies to other gamers who did not have enough money to buy their own. This was the beginning of Yield Guild Games, as from this situation came the inspiration to co-found the company with Beryl Li in 2020. Yield Guild Games was created with the main goal of helping gamers advance in the world of NFT and blockchain-based video games.
How does Yield Guild Games work?
Yield Guild Games stands out for combining Decentralized Finance (DeFi) with NFTs to develop a metaverse economy on the Ethereum blockchain. YGG DAO is an open source protocol with rules applied through smart contracts. YYG DAO serves a number of different purposes, including enforcing governance decisions that are voted on by the community, as well as issuing rewards and facilitating NFT rentals.
YGG is composed of numerous SubDAOs. These SubDAOs feature groups of players from a specific NFT game or geographic location. Each SubDAO presents its own set of rules aimed at managing the activity and assets of the respective play-to-earn game.
Thanks to the model presented by YGG DAO, players of the same NFT game have the possibility to work together to maximize their in-game earnings. In addition, its operation allows guild members to rent and use community-owned NFT assets for the purpose of earning in-game rewards. Moreover, those users who offer to borrow their NFTs through the DAO have the possibility to share a portion of the players’ earnings.
One thing to keep in mind is that in YGG, all NFTs and digital assets are stored in the YGG Treasury. This treasury is controlled by the community. The treasury is the part that is in charge of offering the NFTs to each SubDAO and also includes P2E assets from multiple games on the blockchain.
What are subDAOs?
As we mentioned in the previous section, YGG DAO is mostly composed of SubDAOs. We can view a SubDAO as a local community within the main YGG DAO. These local communities are constituted by the player users of a certain P2E game or specific location. To understand it better, let’s take examples of SubDAO; in the project there is a SubDAO intended for Axie Infinity players, as well as another SubDAO for players of The Sandbox, another for players from Southeast Asia, and so on. When players are grouped into different SubDAOs, they can share game strategies and help each other to maximize their performance.
It should be noted that each SubDAO is responsible for managing the activities and assets of their respective games. However, they always respect their own set of rules and conditions. SubDAOs contribute profits to the YGG DAO. Each SubDAO has a community leader, as well as a wallet and a SubDAO token. Token holders have the possibility to share the revenue generated by the game based on their contributions.
What is YGG?
Yield Guild Games (YGG) is the native token of the project. This is an ERC-20 token that gives holders the right to be part of YGG DAO governance. This token has a limited total supply of 1 billion tokens. It is worth noting that millions of YGG were sold through an Initial DEX Offering or IDO on the SushiSwap platform in 2021. In order to support the community, YGG reserved 45% of the total supply to be distributed gradually among users over four years.
As mentioned above, YGG is the platform’s native token and as such is used for payment of network services. In addition, it contributes to other functions on the platform such as staking to earn rewards in YGG vaults or it can also be used to unlock exclusive content from the YGG Discord channel.
