GameFi: A New Era of Blockchain Games

The concept of GameFi first appeared at the Wuzhen Conference at the end of 2019, proposed by Mary Ma, the CSO of MixMarvel. It combines decentralized finance ( DeFi ) with gaming, with the core feature being "play to earn" (.

GameFi transforms assets from traditional games into NFTs or tokens on the blockchain using blockchain technology, giving games financial attributes. In on-chain games, game rules and items are based on DeFi NFT products. This endows items, skins, and other assets originally controlled by game companies with uniqueness and scarcity, greatly enhancing their collectible value. At the same time, players truly own these digital assets.

Putting game assets on the Blockchain benefits both game companies and players. Game companies can collect transaction fees from the secondary market, while players can earn profits through the game. This reduces black market trading and helps maintain the game ecosystem. As player participation increases, game content will continue to enrich, forming a positive cycle.

However, currently, GameFi still faces some issues regarding the sustainability of its gameplay and economic model. As the popularity of some trending games declines, players' enthusiasm for GameFi also tends to become more rational. But this does not necessarily mean that GameFi will disappear.

Games remain an important area for the application of Blockchain. A decrease in hype helps retain true core users and encourages project teams to solidify technology and improve products. Currently, the GameFi ecosystem is relatively healthy, with gaming guilds like YGG integrating resources and gathering users. Full-chain game narratives represented by Dark Forest are also gradually unfolding, bringing new development opportunities to GameFi.

Yield Guild Games)YGG( Introduction

Yield Guild Games is a blockchain-based gaming community dedicated to providing players worldwide with opportunities to earn income through gaming. YGG supports NFT assets and connects global blockchain gamers and investors.

Currently, YGG has launched profit plans in several games such as Axie Infinity, The Sandbox, and League of Kingdoms. YGG operates in the form of a DAO) decentralized autonomous organization(, where members can participate in decision-making by contributing funds, participating in games, building communities, and sharing various profit opportunities planned by YGG.

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The Development History of YGG

YGG was founded by Gabby Dizon and Archie Oclos in 2020, aiming to create a blockchain-based gaming revenue community to promote decentralization and the development of digital assets.

After its establishment, YGG rapidly developed. First, it collaborated with Axie Infinity to launch an NFT game revenue program, attracting thousands of players to join. It then continuously expanded its influence by collaborating with more games to develop revenue programs.

In July 2021, YGG completed a $24 million financing round, supported by well-known investors such as Pantera Capital and a16z. In February 2023, it raised another $13.8 million, led by DWF Labs and a16z, for the development of soulbound reputation tokens. YGG Japan's subsidiary also completed a private funding round of approximately $2.95 million in January 2023. This reflects the capital's optimism about the prospects of the GameFi market.

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Core Mechanism and Features of YGG

Guild Organizational Structure

YGG has established an organizational structure consisting of a core committee and player guilds:

• Core Committee: Composed of 5 members elected by the community, responsible for making strategic and operational decisions.
• Player Guild: Formed voluntarily by community members, managing assets and generating profits in various games. Each guild has a manager and members, distributing profits based on contribution.

YGG has also launched regional guilds, including Southeast Asia, India, Spanish-speaking regions, Brazil, Japan, South Korea, Central and Eastern Europe, and Turkey.

In addition, YGG has introduced the concept of sub-DAOs, such as YGG-LOK and YGGSPL, which are used for the games League of Kingdoms and Splinterlands, respectively.

![Detailed explanation of the recently popular Yield Guild Games (YGG): Exploring a gaming guild architecture built on GameFi and its future development])https://img-cdn.gateio.im/webp-social/moments-02e63eb370efdd8ca55e4a9c134d48c6.webp(

Revenue Distribution and Sharing

YGG distributes profits based on Contribution Proofs ). Members can obtain contribution proofs by purchasing assets, managing the guild, participating in governance, etc., and share profits proportionally.

YGG adopts transparent financial management, allowing all members to view the accounts. At the same time, through decentralized governance, members are involved in decision-making. YGG also encourages mutual assistance and cooperation among members, sharing experiences.

Cross-Game Ecosystem Collaboration

YGG purchases and manages assets in multiple blockchain games, providing members with a diversified portfolio. Cross-game collaboration is mainly achieved through the following methods:

1. Cross-Game Asset Management Platform
2. Cross-Game Community Building
3. Cross-Game Revenue Sharing Mechanism
4. Cross-game project investment

Taking Axie Infinity as an example, YGG members can earn profits by breeding and training Axies, and manage transactions on the YGG platform. Members can also rent Axies to earn rental fees or form teams to participate in game activities.

Community-Driven Development

YGG attracts more participants through open and transparent governance. Members can propose, vote, interact, and participate in the development of YGG. YGG also actively promotes the development of Blockchain games and the NFT economy.

Taking Axie Infinity as an example, the community-driven aspect of YGG is reflected in:

1. Community Governance: Members participate in decision-making
2. Community Education: Provide Rich Learning Resources
3. Community Collaboration: Collaborate with other projects
4. Community Culture: Establish an Open and Supportive Atmosphere

YGG Sustainability Analysis

YGG's sustainable development faces the following challenges:

1. Business Model: Relies on Play-to-Earn games, needs to maintain player interest and a stable economic model. Currently, the GameFi economic model still needs innovation.

2. Market Environment: The development of the blockchain gaming market is crucial for YGG. Currently, the overall market sentiment is relatively pessimistic, but YGG is still actively strategizing.

3. Regulatory Environment: Changes in blockchain regulations may impact YGG operations.

4. Community Activity: As a DAO, YGG's development depends on community participation. It is necessary to continuously improve member satisfaction.

Overall, YGG needs to continuously innovate and adjust in terms of products, markets, regulations, and communities to achieve long-term sustainable development.