What is Yield Guild Games Business Model?
What is Yield Guild Games Business model? Before going there, let’s learn a bit about Yield Guild Games or YGG. 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.
How Does Yield Guild 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.
This model enables players in the same NFT game to collaborate to optimize their in-game income. Guildmembers 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.
Read this to learn How to Play Yield Guild Games in detail
How did Gaming Guilds Start?
Gabby Dizon, the creator of Yield Guild Games, recognized the growing popularity of Axie Infinity and the increasing demand for the in-game character Axie and decided to begin giving out his Axies (known as ‘scholarships’).
The rental money and yields would be divided among scholars (70 percent), community managers (20 percent), and the guild (10 percent ). Others quickly adopted the approach, resulting in the formation of an increasing number of crypto gaming guilds.
Play-to-earn blockchain gaming guilds are organizations made up of investors, gamers, and managers who act as enabling intermediaries by buying in-game items such as property and in-game assets in the context of NFTs and then loaning them out to thousands and thousands of gamers who earn yields by using those videogames assets in the corresponding virtual worlds.
The guilds will then benefit by sharing a percentage of the earnings and the guild’s rent. The majority of the time, the proceeds are reinvested in the growth of the game guild.
These gaming guilds attempt to involve and allow individuals and groups to participate in such video games without having to invest any money upfront. This eliminates the previously described difficulty, and such a commercial model allows users to go into these game guilds to obtain a head start. It greatly reduces the barrier to entry into P2E games for all gamers.
It also gives everybody a fair chance to engage in the metaverse economy by making NFT holdings more available to everyone. Finally, it offers a win-win situation for both the players who rent the NFTs and the gaming guilds.
Cryptocurrency gaming guilds are currently one of the largest and fastest-growing businesses, and such business models have the potential to tackle some of the world’s most pressing issues.
What is Yield Guild Games Business Model?
What is Yield Guild Games, business model? Yield Guild Games (YGG) has a distinct business model. It creates real-world value by developing new virtual worlds and fueling a digital economy, also called the metaverse.
The major source of revenue for the YGG DAO platform is ownership of YGG-owned NFT assets (but they can also be rented!). Guild members use their own or leased assets as a trading currency to obtain in-game benefits.
Non-guild players who rent digital lands for economic purposes create cash from in-game assets like virtual lands.
Traditional gaming guilds have been around for a long time. Gaming guilds have lately grown in popularity due to the rise of gaming. Traditional gaming is represented by competitive gaming guilds like Cloud9, FaZe Clan, and Team Liquid.
Nevertheless, there is a significant distinction between regular gaming guilds and crypto gaming clubs. While traditional gaming clubs are organized groups of players who play a specific game on a regular schedule, the guilds can rise and fall with the game. Alternatively, crypto gaming guilds serve as platforms for welcoming and supporting new players by giving the assets required to begin playing the games.
In this scenario, even if a game drops its reputation, which is highly common in the gaming industry, members of a cryptocurrency gaming guild can then shift to other popular titles that will generate more wealth for the organization.
While cryptocurrency gaming guilds are still in their early stages, more institutional investors and crypto VCs are betting big on them as thousands more crypto games come into the market, all aiming to become the next big star like Axie Infinity.
Why is Yield Guild Games a Good Investment?
NFTs were one of the top crypto trends in 2021, and many experts predict that blockchain-based computer games will be the most famous cryptocurrency trend in 2022. Since Yield Guild Games is dedicated to merging these two characteristics of blockchain in the most profitable way possible, the YGG token has the potential to become extremely valuable digital money soon.
Although most blockchain games are primarily marketed to gamers, Yield Guild Games is also meant to be profitable and appealing to investors who are purely concerned with profit and not individually spending time in-game to earn NFT assets by playing.
As a result, YGG is a solid investment for a broad range of investors, not just avid gamers. However, Yield Guild Games is predicted to expand quicker than other NFT and gaming-related ventures since it appeals to a wider range of potential purchasers.
Yield Guild Games is an excellent investment because the ecosystem is based on a decentralized autonomous organization. The high level of decentralization prevents YGG from market manipulation and ensures that the project will continue to grow organically in the foreseeable future.