Yield Guild Games (YGG): Investment giant in the NFT gaming sector


The combination of non-fungible tokens (NFT) and blockchain could fundamentally change the gaming sector – away from pay-to-play and towards play-to-earn. The Decentralized Autonomous Organization (DAO) Yield Guild aims to play a vital role in this new industry.

Ever since the rise of Axie Infinity, it has been clear that NFT Gaming is here to stay. The young project has shown that there is an enormous demand for games that use a play-to-earn model. In the last 30 days alone, Axie Infinity has generated over $ 300 million in log revenue – and has even surpassed Ethereum by a long way.


In the Philippines in particular, thousands of people already earn their living playing Axie Infinity every day. According to a post on Facebook, a player from the Philippines was recently able to finance two houses with his winnings in the game.

Even so, NFT gaming is still a niche sector that is only just beginning to develop. Nobody knows whether Axie Infinity can establish itself as one of the top games in the long term or whether the game will disappear from the scene after a few months. However, one thing is clear: NFT Gaming has enormous potential and could change the gaming world permanently.

What does Yield Guild Games (YGG) do?

Yield Guild Games is a Decentralized Autonomous Organization (DAO) made up of tens of thousands of players. The players in this community use their NFT in various play-to-earn games (Axie Infinity, League of Kingdoms, Splinterlands, Sandbox and more) to make money.

For example, the community buys axies, virtual land, game items or other essential in-game items. Furthermore sponsors Yield Guild players and lends game characters to other players for a share of their income.

The aim of the DAO is to build the largest virtual economy and community that will jointly invest in blockchain technology-based play-to-earn games and their in-game assets. YGG wants to maximize the benefit for its community and distribute the profits from the NFT investments to its members. Members of the DAO can also be owners and managers in the YGG ecosystem.

YGG: “A kind of index fund for the NFT space”

YGG is the governance token that holds the Yield Guild community together. It gives players the right to participate in guild activities. In addition, anyone can participate in the DAO by making suggestions or taking part in votes. In addition, the token currently has the following uses:

  • Staking
  • Rewards for completing missions in NFT Games
  • Means of payment for services within the guild
  • Access to exclusive content

Due to these properties and the goals of YGG, the token functions as a kind of index fund for the NFT gaming sector. This is because YGG invests in a large number of NFT games and forms so-called SubDAOs in order to scale the community. This means that every game in which the Yield Guild is active receives its own DAO with its own governance token. These DAOs then focus specifically on a particular game and return part of their income to YGG.

Source: https://yieldguild.io/

The subDAOs decide on game-specific topics and plan quests, raids, land purchases or other in-game activities.


Status quo – how does YGG currently earn money?

Most recently, Yield Guild Games published a financial report on August 12th. This shows that currently most of the DAO’s income comes from activities and investments in the NFT game Axie Infinity. As of now, YGG has signed over 4,600 sponsorship deals with players from the Philippines, Indonesia, India, Venezuela, Peru and Brazil. These players have generated around $ 5.24 million in revenue since April. YGG will receive 10 percent of this, or just under 583,000 US dollars.

By comparison, in July alone, YGG spent roughly three times as much to get even more Axie Infinity sponsorship deals. As before, they want to expand massively and get even more players on board in order to increase long-term income.

YGG invests in these games and NFT

Furthermore, the financial report of YGG shows that the DAO is currently invested in the following NFT with a value of around 10.2 million US dollars.

NFT assets
Source: Yield Guild, NFT Assetsassets

In addition, the game has already acquired shares in some NFT games that will not be released until the next few months and years. YGG considers these games to be very promising and, through its investments, intends to play a decisive role in the ecosystems of these NFT games in the future.

Yield Guild
Source: Yield Guild, NFT Assets

A full list of the investments and the exact assets of the YGG DAO can be found here using on-chain data.

Summary

Right now, YGG’s growth is extremely closely linked to the success of Axie Infinity. Most of the revenue and NFT come from activities within this game. If the Axie Infinity hype loses its momentum, it is very likely that it will also have negative effects on YGG at this point in time.

The gaming industry is a hit-driven industry and it is therefore very difficult to judge when which game will gain popularity. The special thing about YGG, however, is the possibility that the DAO is already investing in a diverse basket of NFT Games and is thus broadly based on the entire blockchain gaming sector.

Whether the extremely young DAO will really manage to effectively coordinate a community of tens of thousands of people in the long term is, however, in the stars. The fact is that Yield Guild, like Axie Infinity, is currently experiencing enormous hype. Since the YGG token launch on July 28, the YGG price has risen from $ 1.89 to $ 6.17 at press time. With a market capitalization of around $ 543 million, YGG rose to the heavyweights in the NFT crypto sector almost overnight.

If you want to find out more about Yield Guild or want to participate in DAO activities yourself, you should take a look at the project’s Discord channel.






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