What is Yield Guild Games (YGG)?
The year 2021 is an extensive and very successful year for non-fungible tokens (NFTs), as their popularity has risen a lot this year. NFT sales have reached a whopping $2 billion in the first quarter of this year.
Because of the gaming projects like NBA Top Shots and artists like Beeple, who have worked for the expansion of NFTs, such assets have become mainstream. From the advent of NFTs, the global gaming market is benefiting the most. No signs of slowing down from blockchain-based games. The value of the gaming market was $167.9 billion in 2020. The task was understood by the Yield Guild Games and his team and have successfully leveraged the decentralized gaming possesses.
Explaining Yield Guild Games (YGG)
Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) that provides a platform for users to invest NFTs in virtual worlds by promoting blockchain-based games. Yield Guild Games (YGG) wants to make the most stable virtual and gaming world economy by leveraging its community-owned assets to their maximum and by rewarding all token holders.
Somehow, Yield Guild Games has managed to effectively merge the intriguing behind NFTs with decentralized finance (DeFi). Through the development of content and the economic structure of games, YGG has managed to establish value-driven virtual worlds within blockchain games like Axie and SandBox.
Within the decentralized ecosystem, the project has already earned significant influence, as this project aims to maximize the value of NFTs all over the industry of blockchain gaming.
How Does Yield Guild Games (YGG) Work?
Yield Guild Games (YGG) works with a unique business model. Supporting a digital economy and creating new online worlds generates real-world value. This process is also known as the aforementioned metaverse. The ownership of YGG owned NFT assets is the primary income source for the DAO platform in Yield Guild Games (YGG). It’s also possible to rent these assets if they don’t want to buy them. Guild members own or rent these assets and use them as a trading company to achieve in-game awards.
Through non-guild members who rent said land for their economic activities, in-game assets such as virtual land generate revenue. The hype around NFT ownership is real this time. The economic value of in-game assets has influenced the price of the NFT; now, on the open market, the NFT will sell it as higher as the price of the digital asset. The value of all the activities in the YGG metaverse is included in the diluted market capitalization of YGG governance tokens.
According to the official website of Yield Guild Games (YGG), currently, it is workable to allow users to rent or farm NFT assets. However, the current renting and forming NFT assets in centralized because the ERC 721 standard does not enable this functionality. In this situation, Yield Guild Games will make a smart contract to issue ownership tokens or make a database to watch ownership and rental assets (this option also affects the cost because there’s no need for gas).
By renting YGG owned NFT assets and participating in active guilds, the users will receive YGG tokens, and it’s important to know that these NFTs can also come from some other games. For example, Axies taken from Yield Guild Games (YGG) can be used to cultivate smooth love motion (SLP) in Axie Infinity (AXS). The earned SLP during the playing period of these games would be returned to the DAO, a predetermined share of the YGG token will be given to the player for playing within the structure of the DAO. YGG tokens will be needed to engage with the governance and other features.
Governance and Rewards
The voting process will be influenced heavily by the community under YGG DAO. The power to determine token reward distribution to holders will be given to community members. Staking vaults will be introduced to directly receive rewards from smart contracts into designated accounts. There will be routine proposal submission for the overall reward distribution mechanism to ensure safe and secure transactions.
Various staking vaults will be released by Yield Guild Games (YGG), allowing token stakes to earn rewards from the overall activities of the platform to a specific activity. 5 principal areas will essentially be centered for voting within the YGG network. These principal areas will be Projects, Technology, Token distribution, Products, and Governance structure. Therefore, the guild members can actively send proposals through the platform’s website within the YGG protocol. Their votes will be cast by the community, then based on a majority of the votes final decision will be made and implemented through a distribution system.
Yield Guild Games (YGG) Token
Listed on Uniswap, Okex, gate.io, and Sushiswap, the YGG token is the tool of choice within the guild. The health of the platform and all other related operations depends on the utility token. Currently, there are 1,000,000,000 YGG tokens in supply. The current distribution of the tokens is spread out across five stakeholders. These five stakeholders are Treasury (13.3% of total supply), Advisors (2%), Founders (15%), Investors (24.9%), and community (45%). Overall, 20% of their allocation released at the network launch will be given to seed investors, and the other 80% of the allocation will have a lock-up period of 1 year. After that, tokens will vest directly beyond the lock-up period for one year.
NFTs have been quite astonishing with their rapid and gradual growth. Many decentralized technologies have caught up with the trend, and in that sphere, they established a noble presence. There have been some significant investments for the play-to-earn sector by Yield Guild Games (YGG) and some other blockchain actors, where NFTs have facilitated the wide adoption of such games. Yield Guild Games has galvanized an often lacking reward system within decentralized projects by relying heavily on NFTs. In YGG, the community members can own and develop assets in a rich and diverse metaverse. In this way, participants are always sure to gain and thrive within a virtual environment.