Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) focused on investing in non-fungible tokens (NFTs) in virtual worlds and blockchain games. The core of its ecological mechanism is to transform players' gaming time into economic value through a community-driven model of investment, leasing, and revenue sharing. The YGG ecosystem builds a closed-loop system connecting players (scholars), investors, and game developers to achieve asset appreciation and sustainable growth. The following will provide a detailed explanation from aspects of DAO structure, tokenomics, key components, participation mechanisms, and value flow. 1. DAO Structure and Governance Mechanism YGG, as a DAO, has a highly decentralized decision-making process. All users holding YGG tokens can participate in governance, including submitting proposals and voting. The governance scope covers treasury allocation, protocol upgrades, asset investments, and ecological expansion. For example, DAO members can vote using tools like Snapshot or Aragon to decide whether to invest in new game projects or adjust revenue sharing ratios. This mechanism ensures that the community's voice dominates ecological development, avoiding control by a single entity. YGG's DAO also has community manager nodes, which are responsible for recruiting and training new players and earning commission rewards from it, further incentivizing ecological expansion. 2. Tokenomics The native token of YGG, $YGG, is an ERC-20 standard token with a total supply cap of 1 billion. The token distribution ratio is: community 45%, treasury 13%, investors 24.9%, founders 15%, advisors 1.85%. This design emphasizes community priority, ensuring long-term value accumulation. The main functions of $YGG include:
Governance: Holders can vote to influence DAO decisions, with winning proposals receiving additional token rewards.
Staking and yield: Users participate in liquidity mining or game pools by staking $YGG, earning yields. YGG plans to launch a Super Index Vault, aggregating all yield-generating activities within the ecosystem, including leasing, subscriptions, and SubDAO performance.
Ecosystem access: Burning $YGG can create sub-guilds, gaining management tools; tokens can also be used to sponsor scholars or invest in new projects.
Token value is positively correlated with ecosystem expansion, mainly supported by the appreciation of game assets and reinvestment of earnings. 3. Key components The YGG ecosystem consists of multiple complementary components, forming an efficient GameFi infrastructure:
Scholarship system (Scholarships): One of YGG's core innovations. By leasing NFT assets owned by the DAO (such as Axies in Axie Infinity or virtual land in The Sandbox) to players, players can participate in games without significant initial investment. The leasing adopts a profit-sharing model: players keep most of their game income (such as SLP tokens), and the remaining portion is returned to the DAO. This mechanism lowers the entry barrier, especially benefiting players from developing countries, while accumulating assets for the DAO.
SubDAOs: These are game-specific sub-DAOs, such as YGG Japan or YGG SEA, each managing assets and activities for specific games. SubDAOs hold their own wallets and sub-tokens, members can share game profits, and govern independently (such as deciding to purchase more NFTs). All profits from SubDAOs ultimately flow back to the main DAO, forming a hierarchical management structure.
YGG Vaults: Smart contract-driven yield generators. Users can deposit $YGG or game tokens into the vaults for liquidity mining or staking. The vaults support automated reward distribution, such as directly injecting profits from game leasing into user accounts. In the future, super vaults will integrate all sources of ecosystem income, providing a one-stop yield farming experience.
YGG Play Launchpad: A recently launched platform serving as a Web3 game aggregator. Players can explore games within the YGG ecosystem, completing tasks (such as daily challenges) to earn new game tokens or NFT airdrops. The platform reduces the cost of switching between games, supports a 'play-to-earn' closed loop, and provides user traffic for projects.
In addition, YGG enhances member skills through programs such as Superquests and the Guild Advancement Program (GAP), rewarding community contributions like Discord management or social promotion. 4. Participation mechanisms and role interactions YGG's ecosystem emphasizes multi-role collaboration:
Players (Scholars): Play games through scholarship leasing of NFTs, generating income (such as selling or renting game assets). They can upgrade to mentors, guiding newcomers and earning commissions.
Investors: Hold $YGG to participate in governance and staking, sharing ecosystem profits. The DAO invests in high-potential NFTs (such as Illuvium or Star Atlas assets), generating returns through appreciation or leasing.
Developers and guilds: YGG collaborates with game projects to provide assets and community support; sub-guilds expand regional influence.
Low entry barriers: Users need to connect an Ethereum wallet (such as MetaMask) and mint a Guild Badge to join. Community contributions (such as marketing) can earn token or NFT rewards. 5. Value flow and sustainability YGG's value flow forms a positive cycle: DAO invests in NFTs → leases to players → players generate income from games → shares with DAO → reinvests or distributes to $YGG holders. Income sources include:
NFT leasing and appreciation.
Virtual land economic activities (such as third-party advertising).
Token staking and liquidity provision.
Partner sponsorship.
This mechanism maximizes asset utility while ensuring transparency through DAO supervision. YGG's reputation model (such as player ratings) further enhances sustainability and avoids speculative bubbles. Overall, the YGG ecosystem mechanism merges traditional gaming guilds with DeFi, creating a highly inclusive virtual economy. By 2025, YGG has collaborated with dozens of games, with membership exceeding tens of thousands, marking the transition of Web3 gaming from entertainment to productivity. In the future, as the metaverse expands, YGG is expected to become a core pillar of GameFi infrastructure.#YGGPlay $YGG
