Yield Guild Games(YGG)
is a decentralized autonomous organization (DAO)
that promotes blockchain-based games by providing a platform for users to invest NFTs
in virtual worlds.
For example, within YGG, you can use NFTs from Axie Infinity to build your own virtual, profitable universe.
YGG is based on the concept of creating sustainable virtual economies and empowering its members to thrive in a virtual environment. Since the team behind YGG believes that virtual economies will become relevant and even more useful than real-world economies, they are empowering users to create assets inside their metaverse — a collective term used for the elements that form a virtual world, including people and objects that form a virtual ecosystem.
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How Does Yield Guild Games (YGG) Work?
Yield Guild Games (YGG) works with a unique business model. It generates real-world value by creating new virtual worlds and supporting a digital economy, also known as the aforementioned metaverse
The main source of income for the DAO platform in YGG comes from the ownership of YGG-owned NFT assets (although it’s possible to rent them as well!). Guild members use these assets, either their own or rented, as a trading currency to achieve in-game rewards.
In-game assets such as virtual lands generate revenue through non-guild members, who rent said land for their economic activities.
This time, the hype around NFT ownership is definitely real, as the price of the NFT is influenced by the economic value of in-game assets — the higher the price of the digital asset, the higher the NFT will sell on the open market.
The fully diluted market capitalization of YGG governance tokens also includes the value of all of the activities in the YGG metaverse.
According to YGG’s official website, it is currently feasible to allow users to farm or rent NFT assets. However, because the present ERC-721 standard does not enable this functionality, the current process for farming and renting NFTs is centralized. In this way, YGG will create a smart contract to issue ownership tokens or create a database to monitor ownership and rental assets (a cost-effective option, because no gas is required).
Users will receive YGG tokens by renting YGG-owned NFT assets and participating in active guilds — and it’s important to note that these NFTs can come from other games!
Axies taken from YGG, for example, may be used to cultivate Smooth Love Potion (SLP) in Axie Infinity (AXS)
. SLP earned during these games would be returned to the DAO, with the player receiving a predetermined share of YGG tokens for playing within the structure of the DAO. To engage with the governance and other features, YGG tokens will be needed.
How Can a Play-To-Earn Game Qualify for YGG?
Play-to-earn games must fulfil three conditions for them to be eligible for selection by the DAO.
The games must have a:
1. Virtual economy with a native token;
2. Play-to-earn functionality with a reward system for players who are rewarded with native tokens for in-game participation;
3. Virtual land-based economy which can be collected/acquired.
How Is Yield Guild Games (YGG) Unique?
YGG aims to capitalize on the $2 billion dollar market of NFTs.
The founders of YGG believe that DeFi tokens and the global gaming market have seen exponential growth and will continue this trend in the years to come. YGG aims to build a global community where players interested in play-to-earn games interact with each other and compete to collect in-game rewards.
Players can generate revenue through either selling or renting their NFT assets (owned by YGG) for a specific markup. For example, players in The Sandbox NFT game can sell or rent their land, Axie Infinity players can rent their Axies to other players (on a profit-sharing model) and so on.
Yield Guild Games (YGG) encourages the community to engage in the DAO by submitting their proposals and voting on key decisions of the project. Continuous R&D is done for gamers in the DAO to arbitrage on the generation of yields by showing an initiative in metaverse-related games.
How Can YGG Members Participate in the DAO Voting Process?
There is no exclusion of any guild member in terms of sending proposals or casting votes to influence key decisions related to products, projects, technology, token distribution, governance structure and more.
A distributed system will be used to make decisions that will be based on the number of votes acquired for a particular project. A reward system will also be established wherein the participants who write winning proposals for the DAO will earn various rewards.
YGG Vaults Will Provide Token Rewards to Guild Members
YGG vaults will provide various staking options to token holders, as well as the ability to choose a specific vault from which their rewards will generate.
There will also be an option of an all-in-one staking system that will reward a specific portion of earnings from all the vaults in equal proportion to the YGG staked in them. Another vault that will generate token rewards from all YGG's activities will also be available for staking.
Every vault will have unique rules such as vesting period, lock-in period or a rewards escrow.
Yield Guild Games (YGG) Tokenomics
There is a total supply of 1,000,000,000 YGG tokens. Here’s how these tokens will be distributed:
- 45% of the tokens will be distributed among the community;
- 13% will be kept in the treasury;
- 24.9% will go to YGG investors;
- 15% will go to the founders of YGG;
- 1.85% will go to YGG advisors.
Yield Guild Games (YGG) will launch staking vaults for the YGG community to facilitate the transfer of rewards directly into their accounts through smart contracts. The distribution of tokens to token holders will be directly dependent on the votes of the YGG community.
Specific activities will be announced which will help decide the winner of rewards according to the participation in those events. The token rewards can include additional membership privileges, such as YGG merchandise, and discounts. The mechanism behind the staking vaults is not defined yet and will be announced as the roadmap items are achieved with time.
When Will Yield Guild Games (YGG) Hit $50?
As of Aug.24, 2021, Yield Guild Games (YGG) is trading at $8.26.
Whether YGG will hit $50 in the near future depends on a lot of factors.
For example, if YGG continues to onboard games such as Axie Infinity (which crossed $1 billion in sales in August 2021), then the future looks bright for YGG token holders. Also, the rental offerings that YGG offers are unique in the sense that not many NFT platforms provide this feature.
Many users may be attracted to sign up for YGG vaults and earn a staking reward based on their activity in the game, which is a win-win situation for the players and YGG.
Furthermore, it’s important to note that the NFT gaming scene has erupted as players from all around the world are participating in this billion-dollar economy. With time, the revenue from play-to-earn games is only going to increase, which may be a good sign for YGG holders who want to see the token reach $50 or more.
Now, considering the whole lot of volatile factors, it is very hard to say in which direction the Yield Guild Games (YGG) token will tilt, which is why it is advisable to keep an eye on market indicators and the technical opinions of cryptocurrency
experts before investing in this token. Always DYOR in the crypto markets.
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