- Yield Guild Games (YGG) is a decentralized gaming guild that pools investors’ funds to purchase game NFT assets and generate revenue from the game.
- YGG is composed of multiple SubDAOs composed of player groups from specific NFT games or geographical locations.
- Most Play-2-Earn games are not sustainable in the long run. Players may prioritize making money over playing the game and abandon the game if it no longer provides the expected incentives. This is also one of the risks faced by YGG.
Yield Guild Games (YGG) has become a top player in the crypto industry. With its single-day trading volume exceeding US$3.9 billion, YGG has become the focus of discussion in major crypto communities. Just after YGG's weekly increase exceeded 3 times and broke through the high point of nearly a year, it experienced a rapid decline. The drop from the highest point was once more than 70%. Such huge volatility can’t help but confuse crypto investors: Why did YGG stand out in the bear market? What’s so special about it? What innovations or investment opportunities will YGG bring to the crypto industry in the future? This article will give you a detailed explanation of YGG, the world’s largest blockchain game union.
What are Yield Guild Games
Yield Guild Games (YGG) is a decentralized game guild, which can also be regarded as a game-based decentralized autonomous organization (DAO). It purchases game NFT assets and obtains them from the game by pooling investors' funds. income. Its core concept is to enable players to obtain actual financial returns from virtual games. This concept is realized through the use of blockchain technology and smart contracts. YGG connects players with the economic value of the game, allowing players to obtain tokens, currencies, props and other virtual items in the game, which can then be traded or converted into real value on internal or external trading platforms.
The origin of YGG
The initial inspiration for building YGG came from 2018. Gabby Dizon, co-founder of YGG, noticed that blockchain games are popular in Southeast Asia - many gamers are playing the popular NFT game "Axie Infinity" at the time, but many players do not have the funds to purchase NFT characters named Axies in the game. So he started lending his Axies (an in-game NFT asset) to other players who couldn't afford the character. To help more players enter the world of NFT and blockchain games, Gabby Dizon and Beryl Li co-founded Yield Guild Games in 2020.
How YGG works
YGG is composed of multiple SubDAOs composed of player groups from specific NFT games or geographical locations. For example, there are SubDAOs formed by players of "Axie Infinity", SubDAOs formed by players of "The Sandbox", and SubDAOs formed by Southeast Asian players. Players are grouped into different SubDAOs where they can discuss game strategies and help each other achieve optimal performance. In addition, each SubDAO manages its own gaming activities and assets according to its own set of rules and conditions, but still contributes revenue to YGG DAO. In a SubDAO there is a community leader, a wallet and a SubDAO token. Token holders receive a share of the revenue generated by the game based on their contributions. They can also make suggestions and vote on governance decisions related to the SubDAO, such as whether to purchase more in-game NFTs, or how to manage their assets.
This model allows players playing the same NFT game to work together to maximize in-game profits. It will also allow guild members to rent community-owned NFT assets to earn in-game rewards. In return, people who lend NFTs through the DAO get a share of the gamers’ income. On YGG, all NFTs and digital assets are stored in the community-controlled YGG vault. The vault offers NFTs for every SubDAO, including the Play-2-Earn asset in multiple blockchain games.
To put it simply, YGG's core business is somewhat similar to a combination of (Buffett's) Berkshire Hathaway and Uber. YGG acquires various NFT assets from different Play-2-Earn games. , and rent these NFT assets to players who need initial funds (ie, in-game NFT assets) to earn income.
YGG Token Economy
YGG Coin is a token that gives holders YGG DAO governance rights. Its total supply is 1 billion, of which 25 million YGG were successfully sold through the initial decentralized exchange offering (IDO). To support the community, YGG has set aside 45% of the total supply, which will be gradually distributed to users over four years. The remaining tokens will be distributed to stakeholders such as the Ministry of Finance, the founding team and project advisors.
As the governance token of the platform, YGG tokens have rich application scenarios. In addition to being used to pay for service fees on the network, they can also be used to obtain rewards in the YGG revenue pool after staking, which can be used to unlock exclusive content on the YGG Discord channel. In addition, YGG holders can also submit proposals and vote on decisions such as the guild’s technology, products, projects, token allocation and overall governance structure.
Challenges facing YGG
Currently, the GameFi field is still in a very early stage. The blockchain game track itself faces many uncertain risks, and the encryption industry will bring higher risks to these start-up blockchain game projects due to its cyclical bull-bear transitions.
Additionally, another risk YGG faces is that most of Play-2-Earn's games are unsustainable in the long run. Players may prioritize making money over playing the game and abandon the game if it no longer provides the expected incentives.
As the next blue ocean market in the encryption industry, GameFi has very broad prospects and development space. YGG has become one of the most noteworthy projects in the GameFi field with its unique business model. Although YGG faces many challenges, it is undeniable that with the continuous development of YGG, it will provide users with more ways to participate in GameFi and innovative profit models. I believe that as the GameFi market matures and improves, YGG will also realize its original vision and value.
Things you must know when playing with local dogs!
1. The evolution of the Tugo project.
In the past, launching a golden dog project required preparing start-up funds, attracting traffic, finding publicity personnel, etc., and carefully packaging the project to make people think it might become a popular golden dog, thus attracting investors. But now, the process has become much simpler. As long as there is a certain amount of traffic, you don't even need a dedicated technical team (because the Internet is full of various tutorials), use AI tools to make some memes, make up a story, and attach a wallet address, and someone may be willing to invest in it. This investment method is called IDO, and the success of the project largely depends on how many "favored people" are willing to "sponsor" it.
2. Common scripts for native dog projects.
Quickly collect money and run away: This method is simple and fast, and does not even need to actually start the project. But please note that this behavior is extremely risky, and if exposed, you may face legal sanctions.
Opening as scheduled: Most of the funds raised will eventually flow into the pockets of the project parties. This is a relatively normal operation mode. The project party successfully transferred the funds through a wave of operations.
Additional funds after opening: After the project opens, all the money received will be used to increase the project's capital pool, and the project side holds part of the tokens. In theory, this operation can ensure that the project side makes steady profits without losing money. For example, this is the operating mode of BOME.
3. The amazing performance of the golden dog BOME.
BOME, the golden dog, came out of the circle at an astonishing speed. It only took 2 days to successfully go online on second- and third-tier exchanges, and 3 days later, it entered the first-tier exchanges. You know, under normal circumstances, if the token wants to be listed on the exchange, the project party needs to pay a lot of money and tokens, and even needs to wait in line. The rapid success of BOME has undoubtedly put a lot of pressure on other conventional projects.
4. Risks and opportunities coexist.
The risks of playing local dog projects are very high. Seeing someone on the Internet post screenshots of tenfold or hundredfold profits, this emotion can easily lead to "FOMO". It feels uncomfortable to lose money, and it is even more uncomfortable to see others making money. But we must understand that these successful cases are often just the tip of the iceberg, and countless failures and losses may be hidden behind them. People are naturally willing to show off when they succeed, but they often choose to remain silent when they fail. This is human nature, but it also makes many people rush into the market with enthusiasm. The result is that some people are happy and some are sad.
Therefore, I would like to remind everyone to invest rationally in earth-dog projects and not to be fooled by superficial prosperity. Before investing, you must conduct sufficient research and risk assessment to ensure that your investment behavior is based on rational and long-term considerations, rather than temporary impulse and following the trend.
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