Yield Guild Games Whitepaper: Four Big Takeaways

Yield Guild Games
Yield Guild Games
Published in
6 min readJun 30, 2021

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Built on the belief that digital economies will someday be worth more than real-world ones, Yield Guild Games combines NFTs, DeFi and gaming to deliver an exciting new model of participating in the Metaverse, one that is wholly guided by its participants.

Yield Guild Games is a blockchain game player’s guild that specializes in generating yield from in-game activities.

Co-founded by Gabby Dizon, Beryl Li, and Owl of Moistness in October 2020, Yield Guild set out on a mission to introduce as many people as possible to the play-to-earn revolution (see the mini-documentary, Play-to-Earn: NFT Gaming in the Philippines). The guild got its start by organizing participants of Axie Infinity, an Ethereum-based game, onboarding new players and helping them reach their maximum earning potential.

To accomplish their mission, Yield Guild set some straight-forward goals:

  • Acquire the best yield producing NFTs in the Metaverse;
  • Build a global economy of play-to-earn gamers;
  • Produce revenue by operating and renting NFTs;
  • Encourage community participation in the guild.

Less than a year into existence, the guild is already one of the largest of its kind, having registered over 20,000 members and expanded operations into several other games.

Yield Guild manages a trove of game-related NFTs, digital assets and virtual land parcels which can be used by members to create greater earnings, for themselves and the guild. In addition to Axie Infinity, some of the other games in which Yield Guild is currently invested include:

After collecting $5.325 million in investor funding earlier this year, Yield Guild is ready to begin a well-planned transition that will ultimately leave its operation completely in the hands of its members.

The guild plans to be reborn as a DAO, or decentralized autonomous organization. The YGG DAO will allow all guild members the opportunity to have a say in decision-making processes while enforcing rules voted upon by the community.

The next step in this transition is to launch the YGG token (YGG), which will be made available for sale to the public on July 27, 2021.

To explain the details of how the YGG DAO and token sale will work, Yield Guild has written a whitepaper. We have identified four major concepts introduced in the white paper that give the reader an understanding of what makes Yield Guild unique and what they plan to accomplish.

1. YGG Vaults

Traditional decentralized finance (DeFi) platforms involve staking tokens to accrue more tokens at a fixed interest rate or staking tokens in a “liquidity pool” to earn a share of collected revenue. The YGG DAO will work a bit differently in that its tokens can be staked into any number of YGG Vaults. Each “vault” represents the token rewards from one or all guild revenue sources.

For instance, one of the vaults could be dedicated to revenue from the breeding and sales of Axies, the central NFT required to play Axie Infinity. Another vault would distribute revenue acquired from NFT rentals. Rewards from the vaults will be paid out according to:

  • the proportion of tokens staked by each guild member, and
  • the current revenue generated by the source assigned to the vault.

There will also be a vault to represent all income-generating guild activities, for those who would like exposure to the entire assortment of revenue sources. This includes not only income generated during gameplay but the trade and rental of NFTs and other digital assets as well.

2. SubDAOs

A SubDAO is a specialized portion of the YGG DAO that is centered around a specific game’s activities and assets. For example, there will be one SubDAO dedicated to players of Axie Infinity, another dedicated to players of League of Kingdoms, another dedicated to players of ZED RUN, and so on.

Token holders within a SubDAO become citizens of the game, playing and working together to increase their collective yield generated from gameplay. They can also use assets owned by the DAO treasury to better equip their characters, furthering their income potential.

As the purpose of a DAO is to automate the functions of an organization, SubDAOs streamline this process by compartmentalizing it, increasing the effectiveness of the DAO’s overall operation. SubDAO participation will be motivated by incentives provided by the guild: the better the individual members of a SubDAO perform, the more they can contribute to the overall DAO, and the greater they are rewarded for their contributions.

3. Community Programs

Yield Guild designed their DAO and token distribution with a community-first mindset. Up to 45% of all YGG tokens will be allocated toward community programs, including airdrops, guild achievement awards, and special bonuses for game victories.

Another way in which Yield Guild contributes to the community is through its scholarship program. A defining feature of the guild, Yield Guild scholarships lend NFTs related to gameplay to members without the means to purchase their own. In exchange, scholarship recipients share their in-game earnings with the guild, contributing to its overall success.

There will be several ways to earn YGG tokens in the near future. Just be actively involved in the community to start learning about the guild’s benefits. The first step in doing this is to join the Yield Guild Discord channel, which will allow you to stay updated on all upcoming player and community rewards.

4. YGG Token and Sale

The Yield Guild Games token (YGG) gives investors exposure to the value created by the guild, the DAO, and its collective SubDAOs. It also provides exposure to Yield Guild’s expansive NFT collection and the successes of the community that use them. Owners of YGG tokens are allowed to take an active role in the guild, voting and participating in DAO-related activities.

Residing on the Ethereum platform, the YGG token can be used in any or all the following ways.

  • Stake for token rewards related to overall DAO activities.
  • Stake for rewards related to specific activities.
  • Stake for access to exclusive content.
  • Use it to pay for services within the network.

YGG can be purchased by the public on SushiSwap during its Minimal Initial SushiSwap Offering (MISO), which is taking place on July 27th from 10am EST / 10pm SGT, with a sale duration of 24 hours unless all tokens are sold out sooner.

For more information on YGG token and the sale, check out our Medium article on the subject.

Join the Yield Guild Discord community and follow us on Twitter.

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Yield Guild Games
Yield Guild Games

Yield Guild Games (YGG) is a web3 gaming guild where players can enrich themselves as they find their community, discover games and level up together.