Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) that promotes blockchain-based virtual reality games by offering a platform where users can invest NFTs in virtual worlds. Within YGG, for example, users can use NFTs from Axie Infinity to create their own virtual universe. YGG aims to build sustainable virtual economies and empower its members to thrive in a virtual environment.
According to the team behind YGG, virtual economies will become relevant and even more useful than real-world economies, which is why they are empowering users to create assets in their metaverse – a collective term for the elements that make up a virtual world, such as people and objects that make up an ecosystem.
How Yield Guild Games (YGG) Work #
YGG’s business model is unique. Through the creation of virtual worlds and supporting a digital economy, also known as the aforementioned metaverse, it generates real-world value.
In YGG, revenue for the DAO platform is generated from the ownership of YGG-owned NFT assets (although they can also be rented). Using these assets, whether they own them or rent them, guild members can gain in-game rewards.
Non-guild members rent in-game assets such as virtual lands for their economic activities, generating revenue.
There is definitely hype about NFT ownership this time, since the price of the NFT is driven by the value of in-game assets – the higher the price of the digital asset, the higher the price of the NFT on the open market.
YGG governance token market capitalization includes the value of all activities in the YGG metaverse.
YGG’s official site indicates that users can currently farm or rent NFT assets. Due to the limitations of the current ERC-721 standard, the NFT farming and rental process is currently centralized. The goal is to create a smart contract to issue ownership tokens or to create a database to monitor ownership and rental assets (a cost-effective option, since no gas is required).
In addition to renting YGG-owned NFT assets, participants in active guilds will receive YGG tokens. It’s important to note that these NFTs can come from other games.
An example of how this works is with Smooth Love Potion (SLP). These tokens can be cultivated using Axies taken from YGG in Axie Infinity (AXS). For playing within the structure of the DAO, SLP earned during these games would be returned to the DAO, with the player receiving a predetermined share of YGG tokens. YGG tokens are needed to interact with the governance and other features.
What YGG Qualifies as Play-to-Earn Games #
To qualify for selection by the DAO, play-to-earn games must meet three conditions. The games must include:
- Virtual economy with a native token.
- Play-to-earn functionality with a reward system for players who are rewarded with native tokens for in-game participation.
- Virtual land-based economy which can be collected/acquired.
Why Yield Guild Games (YGG) is Unique #
NFTs represent a market worth $2 billion dollars, and YGG is hoping to capitalize on that.
YGG’s founders believe that DeFi tokens and the global gaming market will continue to grow exponentially in the years to come. “We hope to build a global community where players who are interested in play-to-earn games can interact with each other and compete to collect in-game rewards.”
NFT assets (owned by YGG) can either be sold or rented by players for a specific markup. In The Sandbox NFT game, players can sell or rent their land; in Axie Infinity, players can rent out their Axies (on a profit-sharing model), and so on.
Yield Guild Games (YGG) encourages the community to engage in the DAO by submitting their proposals and voting on key decisions of the project. Continuous R&D is done for gamers in the DAO to arbitrage on the generation of yields by showing initiative in metaverse-related games.
No guild member is excluded from sending proposals or casting votes to influence key decisions related to products, projects, technology, token distribution, governance structure, and more.
“We will use a distributed system to make decisions based on the number of votes gathered for each project. Participants writing winning proposals for the DAO will also be rewarded through a reward system.“
YGG vaults #
With YGG vaults, token holders will be able to stake their tokens in a variety of ways and choose which vault their rewards are generated from.
Also available will be an all-in-one staking system that will reward a specific percentage of earnings from all vaults in proportion to the YGG staked in them. Additionally, YGG will offer a vault that will generate token rewards from all of its activities.
There are unique rules for every vault, such as vesting periods, lock-in periods, or rewards escrows.
Yield Guild Games (YGG) Tokenomics #
There is a total supply of 1,000,000,000 YGG tokens. Here’s how these tokens will be distributed:
- 45% of the tokens will be distributed among the community;
- 13% will be kept in the treasury;
- 24.9% will go to YGG investors;
- 15% will go to the founders of YGG;
- 1.85% will go to YGG advisors.
Through smart contracts, Yield Guild Games (YGG) will make rewards available directly to its community by launching staking vaults. Votes from the YGG community will determine the distribution of tokens to token holders.
Activities will be announced which will determine the winners of rewards based on their participation in those events. Additionally, token rewards can include discounts and merchandise from YGG. As the roadmap items are completed, the mechanism behind staking vaults will be revealed.
YGG has created a unique platform that most likely will be followed by other guilds. YGG token holders might benefit if the company continues to integrate games like Axie Infinity (which crossed $1 billion in sales in August 2021). Furthermore, YGG’s rental services are unique since not many NFT platforms offer them.
There are many reasons to join YGG vaults and earn rewards for staking, which is a win-win situation for both players and YGG.
Additionally, it is important to note that players from around the world are taking part in this billion-dollar industry. As time goes on, revenue from play-to-earn games will only increase, which may be a good sign for YGG holders who want to see the token reach $50 or more.
Taking into account all these volatile factors, it is extremely difficult to predict in which direction Yield Guild Games (YGG) will tilt, which is why it is a good idea to keep an eye on market indicators and the technical opinions of cryptocurrency experts before investing in this token. In the crypto markets, it is always DYOR.