What are Yield Guild Games?

Yield Guild Games

One of the major trends in blockchain technology is play-to-earn gaming. As games launch their tokens and nonfungible tokens (NFTs), they draw both players and investors. With the emergence of gaming guilds, this trend is expected to continue. Yield Guild Games (YGG) is a blockchain gaming guild that focuses on play-to-earn games. It is a community that invests in NFT assets and brings together blockchain players from all over the world. Their goal is to create a network of players and investors that will assist one another in getting started and growing in the NFT gaming market. These guilds benefit gamers, investors, and the community as a whole. Joining a guild has various perks.

Introduction

Yield Guild Games (YGG) is a Decentralized Autonomous Organization (DAO) that invests in blockchain games’ non-fungible tokens (NFTs). These games are a subset of what is known as the metaverse. The phrase metaverse refers to the various components of blockchain-based digital worlds, such as digital land, digital assets, and so on.

In 2018, the notion of establishing a global play-to-earn gaming community arose. Gabby Dizon, co-founder, and CEO of YGG saw that blockchain gaming was becoming popular in Southeast Asia. Many gamers were wanting to get started in the popular NFT game Axie Infinity at the time, but many lacked the funds to purchase the in-game NFT characters known as Axies.

Dizon began lending his Axies to other players who couldn’t afford to buy their own after realizing that blockchain gaming can be an empowering tool for folks living in underdeveloped countries. This prompted him to co-found Yield Guild Games with Beryl Li in 2020, to assist gamers in thriving in the world of NFTs and blockchain gaming.

How do Yield Guild Games function?

Yield Guild Games creates a metaverse economy on the Ethereum blockchain by combining Decentralized Finance (DeFi) and NFTs. The YGG DAO is an open-source platform with smart contracts that enforce regulations. It fulfills several functions, including carrying out community-voted governance decisions, giving incentives, and facilitating NFT rentals.YGG is made up of several SubDAOs, which are groups of players from a certain NFT game or geographical location. Each SubDAO has its own set of regulations for managing the corresponding play-to-earn game’s activity and assets.

This model enables players in the same NFT game to collaborate to optimize their in-game income. Guild members can also rent and use community-owned NFT assets to gain in-game benefits. Those that lend their NFTs through the DAO can enjoy a portion of the gamers’ winnings in exchange.All NFTs and digital assets on YGG are housed in the YGG Treasury, which is managed by the community. The treasure distributes NFTs to each SubDAO and contains P2E assets from several blockchain games.

Scholarships from YGG

The YGG DAO employs an NFT rental mechanism known as scholarships to increase the value and utility of gaming NFTs. The Axie Infinity community first proposed the idea to benefit both NFT owners and play-to-earn gamers.Axie owners can lend their gaming assets to help new players get started in Axie Infinity in exchange for a percentage of their in-game earnings. The process is carried out via blockchain smart contracts, and academics can only utilize the NFTs in-game. Only the manager (owner) has the authority to trade or transfer the NFTs.

Similarly, YGG offers scholarships to new players through a revenue-sharing mechanism, where they can obtain NFT assets to begin playing and earning in-game prizes. The scholars do not have to put up any money upfront, but they do have to share a portion of their gains with their managers. In addition to NFTs, new players will receive instruction and direction from community managers. Scholarships from YGG are not limited to NFTs in Axie Infinity. In addition to virtual lands in The Sandbox and League of Kingdoms, the YGG Treasury owns virtual cars in F1 Delta Time and other play-to-earn games.

SubDAOs As previously stated, the YGG DAO is mostly made up of SubDAOs. SubDAOs can be thought of as smaller communities within the larger YGG DAO. Local communities are made up of gamers from a specific P2E game or place. There is, for example, a SubDAO for Axie Infinity players, another for The Sandbox players, yet another for Southeast Asian gamers, and so on. Players can discuss gaming techniques and help one other maximize performance by organizing themselves into distinct SubDAOs.

Each SubDAO handles the operations and assets of its particular game under its own set of rules and restrictions, but they nevertheless contribute earnings to the YGG DAO. A SubDAO consists of a community lead, a wallet, and a SubDAO coin. Token holders can split the proceeds from the game based on their contributions. They can also make comments and vote on SubDAO governance choices, such as whether to buy more in-game NFTs or how to manage their assets.

What exactly is the YGG token?

Yield Guild Games (YGG) is an ERC-20 token that entitles holders to vote on the governance of the YGG DAO. It has a total quantity of one billion tokens, and 25 million YGG were sold in 2021 through an Initial DEX Offering (IDO) on SushiSwap. YGG has set aside 45% of the total supply to be handed to users gradually over four years to help the community.

YGG, the platform’s native token, is used to pay for network services. It can also be staked in the YGG vaults to gain rewards or used to unlock unique content on the YGG Discord channel. Furthermore, YGG holders can propose and vote on choices affecting the guild’s technology, products, initiatives, token distribution, and overall governance structure. YGG tokens will be awarded to the winning recommendations that are subsequently implemented into the DAO.

The YGG Vault

The YGG DAO approaches yield farming differently than typical DeFi staking systems. Tokens are typically staked to earn fixed-rate interest. On YGG, each vault is a token reward program for a certain YGG activity. One vault, for example, may pay yields based on the performance of a scholarship program, whilst another vault may reward stakers based on the Axie breeding program.
YGG also intends to build a super index vault that symbolizes all yield-generating activities in its ecosystem. Stakeholders will be rewarded depending on the guild’s revenue from subscriptions, products, rents, treasury growth, and SubDAO index performance in this vault.

Token holders can stake for the activity they support, with incentives delivered proportionally to the amount of YGG staked using smart contracts. Rewards may also include YGG tokens, Ether (ETH), or stablecoins, depending on how the vault is programmed.

 

 

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Author's Bio

Naveen C

Co- founder at Ecosleek Tech Research and Branding at MythX. Talks about #gaming, #metaverse, #blockchain, and #softwaredevelopment

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What are Yield Guild Games?

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