Overview of the GameFi Industry and In-Depth Analysis of the YGG Guild

The concept of GameFi was first proposed by executives from MixMarvel at the Wuzhen Conference at the end of 2019, with the core feature being "play to earn" (. It empowers traditional game assets through blockchain technology, transforming them into NFTs or FTs on the chain, giving games financial properties. GameFi breaks the situation where game assets are solely controlled by game companies, allowing players to truly own game data, enhancing the collectible value of in-game items.

This model benefits both game companies and players - companies can earn revenue from secondary market transactions, while players can make money through gaming. At the same time, it also promotes the richness of game content, creating a virtuous cycle. However, currently, GameFi still faces some issues regarding playability and the sustainability of capital flow.

Despite the recent decline in the popularity of GameFi, gaming remains the top choice for breaking boundaries. The drop in popularity helps to refine the user base and encourages project teams to solidify and address key issues. Meanwhile, DAOs like YGG are integrating resources, gathering users, and creating a healthy competitive community ecosystem. The full-chain game narrative represented by Dark Forest is also gradually unfolding.

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YGG Guild Introduction

YGG is a blockchain-based gaming investor community dedicated to providing global players with opportunities to earn profits across multiple blockchain games. It operates in the form of a decentralized autonomous organization )DAO(, where members can participate in organizational decisions and development in various ways while sharing profits. Currently, YGG has initiated profit plans in several games such as Axie Infinity, The Sandbox, and League of Kingdoms.

The Development History of YGG

YGG was founded by Gabby Dizon and Archie Oclos in 2020, aiming to create a blockchain-based gaming revenue community. After its establishment, YGG rapidly developed, first partnering with Axie Infinity to launch an NFT gaming revenue program, attracting thousands of players to join.

Subsequently, YGG continues to expand its influence in the blockchain gaming market, collaborating with more well-known games and developing new revenue plans. In July 2021, YGG completed a $24 million financing round, receiving support from prominent investors such as Pantera Capital and a16z. In February 2023, YGG raised another $13.8 million for the development of soulbound reputation Tokens. These financings indicate that capital is optimistic about the prospects of the GameFi market and blockchain gaming communities like YGG.

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Core Mechanism and Features of YGG

Guild Organizational Structure

YGG adopts a guild-based organizational structure, which includes two parts: the core committee and player guilds.

• Core Committee: Composed of 5 members, responsible for formulating strategies and operational decisions.
• Player Guilds: Formed voluntarily by players to manage assets and generate income across different games. Each guild has a manager and members; the manager is responsible for asset management, while members receive profit distribution based on their contributions.

YGG has also established multiple regional guilds, including Southeast Asia, India, Japan, South Korea, etc., to adapt to the different cultures and languages of these regions. In addition, YGG has introduced the concept of sub-DAOs, such as YGG-LOK and YGGSPL, which are used for the operation of specific games.

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Revenue Distribution and Sharing Mechanism

YGG distributes profits based on Contribution Proofs ). Members obtain Contribution Proofs through purchasing virtual assets, managing guilds, participating in community governance, and so on, and profits are distributed accordingly. The distribution ratio depends on the proportion of individual Contribution Proofs held relative to the total amount.

YGG adopts transparent financial management, allowing all members to view the guild's accounts. At the same time, it encourages cooperation and mutual assistance among members, sharing gaming experiences and profit opportunities to promote community development.

Cross-Game Ecosystem Collaboration

YGG supports cross-game asset management, community collaboration, revenue sharing, and investment. Members can purchase and manage virtual assets across multiple games, obtaining a diversified portfolio. YGG also collaborates with several game developers to provide members with more revenue opportunities.

Taking Axie Infinity as an example, YGG members can earn income by breeding, training, and battling Axies, and manage and trade them on the YGG platform. Members can also rent Axies to other players to earn rental income.

Community-Driven Development Model

YGG adopts an open and transparent governance mechanism, encouraging members to participate in proposals, voting, and social interactions. In games like Axie Infinity, YGG has established mechanisms such as guild governance, community education, and inter-guild cooperation, fostering an open and mutually supportive community culture.

Sustainability Analysis of YGG Development

The sustainable development of YGG faces the following challenges and opportunities:

1. The business model relies on the ongoing appeal of "play-to-earn" games, but currently, most GameFi economic models face sustainability issues.

2. The overall development of the blockchain gaming market has a huge impact on YGG, and the current market sentiment is pessimistic.

3. The uncertainty of the regulatory environment may affect YGG's operations.

4. Maintaining community activity and participation is the key to YGG's success.

Despite facing challenges, YGG actively established partnerships with multiple parties during the bear market to lay out plans for future development. The GameFi industry needs to continuously innovate in gameplay and economic models to achieve long-term sustainable development.