How Does Yield Guild Games Work?

How does Yield Guild Games work? Yield Guild Games (YGG) is a blockchain-based play-to-earn gaming club. It’s a global community that engages in NFT assets and brings together blockchain players from all around the world. Their goal is to create a community of players and investors that will assist one another in getting started and growing in the NFT gaming industry. 

What is Yield Guild Games?

What is Yield Guild Games

Yield Guild Games (YGG) is a Decentralized Autonomous Organization (DAO) that engages 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 virtual worlds, such as digital property, digital products, and so on.

In 2018, the notion of establishing a global play-to-earn games industry arose. Gabby Dizon, co-founder, and CEO of YGG saw that blockchain gaming was becoming popular in Southeast Asia. Many players were wanting to get involved in the famous 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 gamers who couldn’t afford to purchase their own after realizing that blockchain gaming can be an uplifting tool for folks living in underdeveloped countries. This prompted him to co-found Yield Guild Games with Beryl Li in 2020, with the goal of assisting gamers in thriving in the world of NFTs and blockchain games.

How Does Yield Guild Games Work?

Yield Guild Games creates a metaverse market 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 geographic region. Each SubDAO does have its own set of regulations for managing the corresponding play-to-earn game’s activity and assets.

How Does Yield Guild Dames Work

This model enables players in the same NFT game to collaborate in order to optimize their in-game income. Guild members can also rent and use community-owned NFT assets to gain in-game benefits. Those that loan their NFTs through the DAO can enjoy a portion of the gamers’ winnings in exchange.

All NFTs and digital products 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.

What are YGG Scholarships?

The YGG DAO implements an NFT rental program known as scholarships to increase the value and usability of gaming NFTs. The Axie Infinity community first proposed the idea to assist both NFT owners and play-to-earn players.

Axie owners can loan their game assets to newbies in Axie Infinity in exchange for a share of their in-game benefits. Students can only use the NFTs in-game because the procedure is finished through blockchain payment systems. The NFTs can only be traded or transferred by the management (owner).

Furthermore, YGG offers new players scholarships based on a revenue-sharing model, in which they can receive NFT assets to begin playing and earning in-game prizes. The scholars do not have to put any money down upfront, but they do have to share a percentage of their gains with their managers. Newbie players will receive instruction and guidance from community teams in addition to NFTs.

In Axie Infinity, YGG scholarships are not limited to NFTs. Among other play-to-earn games, the YGG Treasury holds virtual territories in The Sandbox and League of Kingdoms, as well as virtual vehicles in F1 Delta Time.

What are SubDAOs?

As previously stated, SubDAOs make up the majority of the YGG DAO. SubDAOs can be thought of as smaller communities within the primary YGG DAO. Players from a certain P2E game or locale make up these local communities.

There is a SubDAO committed to Axie Infinity players, a SubDAO committed to The Sandbox players, a SubDAO committed to Southeast Asian gamers, and so on. Players can discuss gaming methods and assist each other to maximize performance by dividing them into distinct SubDAOs.


Each SubDAO handles the operations and assets of its particular game according to its own set of rules and restrictions, but they nevertheless contribute earnings to the YGG DAO. There is a team lead, a wallet, and a SubDAO unit in a SubDAO. Holders of tokens can split the profits made by the game based on their contributions.

They can also make recommendations and vote on SubDAO governance issues, like whether to buy more in-game NFTs or how to handle their assets.

What is a YGG Vault?

Most DeFi staking platforms try a different view to yield harvesting than the YGG DAO. Tokens are generally staked to generate fixed-rate interest. Each vault on YGG symbolizes a token reward program for a certain YGG activity. One vault may offer returns based on the success of a scholarship program, while another may offer stakers incentives based on the Axie breeding program.

In addition, YGG intends to create an all-in-one super index vault that will represent all yield-generating events in its network. This vault will pay stakers depending on the guild’s membership, merchandise, lease, and treasury growth, as well as the effectiveness of the SubDAO index.

Smart contracts will give incentives proportionally to the amount of YGG staked by unitholders for the activities they support. Rewards could include YGG tokens, Ether (ETH), or stablecoins, based on how the vault is configured.


YGG is creating a decentralized community in the real world with a unique revenue-sharing mechanism. It helps users to succeed in these virtual worlds thanks to a dynamic gaming economy. NFT guilds like Yield Guild Games could profit from the flood of newbies and crypto enthusiasts wanting to explore play-to-earn NFT games as an additional source of revenue as metaverse initiatives grow in popularity.

Suggested Reading: Yield Guild Games vs Axie Infinity: Overview, Price, Gameplay