Crypto Gaming Guild: What is it and how does it work?

With the advent of blockchain technology, it is now possible for gamers to earn money while playing online video games.

Unfortunately, many of these games require the ownership of certain in-game assets, equipment, and other amenities, some of which might be pricey. Many players, particularly those from developing and underdeveloped countries, cannot afford them. How can this problem be solved? This is where crypto gaming guilds become relevant.

What is a Crypto Gaming Guild?

A crypto gaming guild is an organization that is made up of gamers, investors, and managers.

Crypto Gaming Guilds are formed with the primary objective of investing in potential web3 gaming initiatives in order to promote a healthy play-to-earn environment, as well as providing gaming resources such as NFT characters and in-game tokens to players who cannot purchase them. NFT investors and ambitious play-to-earn gamers saw the potential for mutual gain, which led to the rise in the popularity of gaming guilds in the cryptocurrency arena. When players succeed in making money, a predetermined part of that money is given to the guild.

The concept of gaming guilds is not new. They are typically made up of groups of gamers who enjoy playing video games together and who have their own culture. Esports teams are well-known instances of gaming guilds, but in the crypto space, gamers get to make a steady living off of playing video games.

When did Crypto Gaming Guide start?

The present “play-to-earn” concept is said to have its roots in the Philippines. When COVID-19 wreaked havoc on the world, P2E games started to gain enormous popularity, and players were making money playing Axie Infinity. As soon as many cashed out their prizes and posted pictures of them spending them, the hashtag #ThankYouAxie started to spread on social media.

Axies, the in-game currency of Axie Infinity, started trading at record levels as more and more people began to play the game. Dizon, the creator of Yield Guild Games (YGG), saw an opportunity and began leasing Axies in scholarship programs. Scholars received 70% of the money made by playing Axie Infinity, the guild received 10%, and the community administrators received 20%.

The model was well received by many people, and soon new guilds were being formed.

A “scholarship” is a situation in which the owner of NFT or in-game assets lends them out to other guild members who use these assets to play and earn. While the owner of the NFT asset is referred to as a “manager,” the player is referred to as a “scholar.” The manager, scholar, and gaming guild all receive a percentage of the scholar’s earnings, as previously agreed.

How do Crypto Gaming Guilds work?

For crypto gaming guilds, the goal goes beyond advancing the GameFi industry. They want to promote the whole cryptocurrency industry, bringing widespread acceptance closer while also helping players maximize their earnings. The following techniques are used by crypto gaming guilds;

• Bridge cryptocurrency and traditional gaming.

Games built on the blockchain are different from traditional video games. There are several processes that non-crypto users may find intimidating. The GameFi industry has to be more accessible, so it’s critical that newbies have access to more instructional materials.

As a result, guilds indirectly aid non-crypto gamers in gaining market access by educating players on the following:

• How to set up a cryptocurrency wallet, like Metamask, to access the game and market.
• How to deposit and withdraw money from trading exchanges and DApps.
• How to safeguard their accounts and conduct transactions

Game guilds also assist players in learning more about the game project, including the game’s mechanics and reward schemes. The more non-crypto gamers are informed about the industry, the more probable it is that they will try out GameFi. As a result, more money comes in, which aids in the market’s long-term expansion.

• Connecting community with Crypto gaming.

The core of every gaming project is its community, and gaming guilds help connect gamers with gaming projects.

Gaming guilds function as DAOs (decentralized autonomous organizations), with financing provided by the DAO token community. Investors would put their money into NFT assets and in-game tokens, which gamers would use to play and earn for shared profits. This is referred to as a “scholarship program.”

However, the guild’s main duty and obligation are to guide the community in the Web3 gaming world. The community facilitates a game project’s long-term growth, where players gather to chat and exchange questions.

• Scholarship Programs for Gamers

A solution to the play-to-earn access hurdle that gamers in underdeveloped nations encounter is the scholarship program of gaming guilds.

Owners of NFT assets inside the guild can lend their NFTs to other guild members known as “scholars.” Scholars can then utilize these digital assets to compete in and earn money from the crypto game. The guild, the owner of the NFT assets, and the gamer then split the proceeds. Depending on the guild, the profit is distributed differently.

Almost everyone may access new gaming experiences and income prospects thanks to this system, which has a significant societal influence worldwide.

• GameFi project quality control

After the Axie Infinity boom in 2021, the GameFi sector saw a rise in popularity. As a result, several projects aim to release the next cutting-edge gaming product on the market.

However, it also implies that some projects are of low quality and are frauds aiming to profit from the play-to-earn craze. The guild must shield its members from fraud or ruses. Before giving out scholarships to its members, all top gaming guilds conduct detailed research on the economic structure of the projects they invest in, as well as test-play and review the game.

• Connect Potential Investors to the GameFi Market

In the GameFi industry, crypto gaming guilds also serve as venture capital. They would research fresh cryptocurrency games and make investments if they found promise.

Investors may contribute to guilds and offer scholarships to their members even if they don’t have the time to play the games they wish to invest in. In this manner, guilds may aid investors indirectly by allowing them to invest in games via them without having to deal with the hassle of conducting research, managing accounts, or operating the game.

Conclusion

Despite the current bear market, the GameFi industry still has a bright future ahead of it. This is because gaming is the most popular form of entertainment worldwide and everyone may benefit from the chance to make money doing what they love.

The high entrance barrier and short-term economic viability, however, continue to be roadblocks for the GameFi industry. Gaming guilds for cryptocurrencies are useful in this situation. By buying NFT in-game assets and lending them to players so they may play and earn, which will be shared via the scholarship program, they serve as facilitating intermediaries.

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