YGG Research Report: In-depth understanding of operating methods and investment concepts

Project Overview

The track where YGG is located is the Chain Tour Guild Track.

Due to the rise of the Gamefi circuit in 2021, the explosion of Axie Infinity triggered a financial frenzy among blockchain players, but for most gamers in low-income countries, the configuration cost of a 600 US dollar pet that often requires three to start a battle is unaffordable for many players. In this environment, the emergence of chain game guilds has greatly lowered the threshold for players to enter P2E games. Among them, the scholarship system pioneered by Yield Guild Games has led to the rise of chain gaming guilds, 2021 There was a significant increase in the amount of financing for the track in both the year and 2022.

Yield Guild Games (YGG) is a decentralized gaming guild built on ETH and Polygon. It pioneered a scholarship model that led to the rise of the blockchain game guild circuit, but due to the current lack of chain tours, the limitations of the scholarship model have gradually been revealed, and YGG has begun to invest in high-quality games rather than simply developing P2E games along the path of development.

As of the third quarter of 2022, YGG has collaborated on 55 GameFi projects. The game ecosystem it has invested in covers a wide range of areas and is rich in types, which is conducive to better development when GameFi tracks break out in the future.

In addition to investing in game assets, YGG is committed to developing the community size of its ecosystem. By establishing a SubDAO, it finds suitable communication and marketing channels in each country to expand its influence, thus establishing exclusive communities in different countries. This step of strategic planning gives YGG’s current overall community size a great advantage over other guilds on the same track.

It should be noted that, according to statistics, the game assets invested by YGG have shrunk significantly throughout 2022, and its investment style has gradually become cautious. In the current situation where there are few gold games in chain games, investment income will be one of the important sources of treasury revenue. In the future, it is necessary to continuously observe changes in its treasury to determine whether the project can survive the bear market stage in the future. At the same time, if the chain game circuit does not develop well in the future, it will greatly limit the development limit of the project.

1. Basic Overview

1.1 Project Overview

Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) whose function is to invest in assets or tokens based on virtual worlds and blockchain games, optimize the value of assets owned by its community, and achieve maximum utility.

1.2 Basic Information

2. Detailed explanation of the project

2.1 Teams

According to its official report, the YGG team revealed a total of 48 people. Judging from their team members’ backgrounds, most team members have blockchain work backgrounds and traditional gaming backgrounds, and most members are participants in the deep Axie Infinity ecosystem.

Gabby Dizon, CEO and co-founder of YGG. It has been deeply involved in mobile games since 2004, and has entered the blockchain industry since 2018. In 2014, Gabby founded Altitude Games, a game studio based in Manila, which released the blockchain game Battle Racers in 2019. Gabby Dizon is an active member of the Axie Infinity and Yearn Finance communities and a board member of the Blockchain Gaming Alliance.

Beryl Li, CFO and co-founder of YGG. Beryl Li graduated from Cambridge University and has been deeply involved in the blockchain industry since 2014. Since 2014, she has served as the chairman of the 2016 Cambridge University Cryptocurrency Association, worked for BlackRock Asset Management, and is a co-founder of CapChainX (acquired by SMKG OTC US) and a financial institution licensing consultant.

Owl of Moistness, CTO and co-founder of YGG. It has been in the blockchain industry since 2018. Owl of Moistness built breeding algorithms for Axie Infinity and many of its Discord bots, and wrote smart contracts to integrate the Discord tipping system, deflationary token packaging contracts, and mining strategy contracts that meet YVault standards.

Alexei Udall aka Sarutobi, partner leader at YGG. Entered the blockchain industry in 2017. 5+ years of experience in SaaS sales and partnerships.

Nolan Manalo aka Nate, head of YGG’s game business. Since entering the blockchain industry in 2016, he is an active member of the Axie Infinity community and the head coach of various YGG e-sports teams.

Advisory team:

Anil Lulla, co-founder and COO of Delphi. Anil has a good reputation for cryptographic digital asset research and technical consulting. Delphi oversaw YGG’s token design, and Anil will also provide guidance and effective fund management before full decentralization.

Eric Arsenault is a partner at Metacartel Ventures. Eric has been a leader in the DAO field since 2018. He is a partner and investor at Metacartel Ventures and the head of the Rarible DAO ecosystem. Prior to that, he worked at DAOstack, advising on many industry-leading DAO projects. Eric will be advising YGG on the DAO structure and the process of transitioning to decentralization.

2.2 Funding

Up to now, YGG has carried out four rounds of financing, with a total amount of $22.425M. Details are as follows:

Table 2-1 YGG financing situation

Judging from the on-chain treasury asset address statistics provided by YGG, YGG’s treasury funding situation is shown below. Judging from YGG’s current team size, its overall capital is expected to support the DAO through this round of bear market.

Table 2-2 YGG Treasury Assets

2.3 Code

The YGG codebase is not open source.

2.4 Product

Yield Guild Games (YGG) is a decentralized gaming guild built on ETH and Polygon. It pioneered the scholarship model and led to the rise of the blockchain game guild circuit, but due to the current lack of chain games, the limitations of the scholarship model have gradually been revealed. YGG has begun to shift its development path to investing in high-quality games rather than simply P2E games, while enhancing its community influence through various strategies to expand the size of the community. Therefore, we will mainly introduce YGG’s investment map and community structure. project.

2.4.1 YGG Scholarship Model

As shown in the following figure, the scholarship system pioneered by YGG is formed by three parties:
For players who lack the NFT assets needed to enter the game, they can apply to the guild for a part-time job in Discord, lend NFT assets, and spend time to earn in-game token rewards; for the guild, they need to purchase a certain amount of NFT assets to lend to players who have passed the application; for community managers, the role needs to attract, screen, and train qualified goldplayers; among them, the tokens earned by players need to be shared with guilds and community managers. Currently, YGG’s share ratio is 71, that is, players can get benefits With %的代币，社区经理可以获取收益20% tokens, guilds can obtain tokens with a profit of 10%.

Figure 2-1 Scholarship System Business Process

The scholarship system essentially helps Gamefi bring in more players who mainly play for money. In the early stages, this group of groups could help the game attract popularity and expand the game community, but once it enters the middle to late stages, in the current situation where the design of the token model for chain games is not mature and death spirals abound, the huge damage to the game itself is extremely serious, which will accelerate the collapse of the Gamefi economic model.

This means that it is difficult for the scholarship system to operate for a long time in a single GameFi. Guilds need to constantly search for profitable GameFi before they can make a profit, yet during the bear market, the number of profitable GameFis is very scarce. This will cause the guild to have no income for a long time.

2.4.2 Operation mechanism of YGG DAO

YGG DAO’s treasury assets (tokens, NFTs, virtual plots) are managed by YGG Treasury and are currently regulated by the three Yield Guild co-founders. This part of the asset can only be used when two of the three co-founders sign a deal or if the DAO community initiates a proposal to dispose of the asset.

Another major mechanism of YGG is to create different subDAOs, or sub-guilds, based on different regions and games. SubDAO is a DAO that focuses on specific games or specific regions. Each subDAO can have its own governance rules. SubDAO will allow the guild to operate through localization. When a subDAO is created, such as a game-focused subDAO, YGG will first research the game, and then buy NFT assets within the game and put them in its treasury wallet. Finally, subDAO managers will be appointed. NFT assets are transferred to smart contract wallets controlled by SubDAO;

At the same time, YGG will also issue subDAO tokens, such as the subDAO created by YGG for the League of Kingdoms, and the token name is YGGLOK. After the subDAO token is issued, YGG will keep some of its SubDAO tokens to participate in its governance later; subDAO token holders can vote on governance issues specific to this subDAO, so they can have a say in how it works.

From a functional point of view, YGG, as the main DAO, will be more inclined to cooperate with more game players, invest and manage their treasury assets; while most of the work of incubating and diverting specific games will be carried out by subDAO; at the same time, for regionalized subDAOs, such as YggJapan, YGGSEA, which invests in games in Japan and Southeast Asia respectively, subDAO will recruit local talents to manage and organize activities locally on a regular basis. It is committed to developing the localization of the guild and expanding YGG’s in various regions Influence.

Figure 2-2 SubDAO Founding Flowchart

Currently, there are 12 subDAOs under YGG, as shown below:

Table 2-3 SubDAO under the YGG layout

As can be seen from the table above, the total number of YGG subDAO members has now exceeded 35W. Here is the main subDAO introduction:

YGG SEA: YGG SEA is YGG’s first regional subDAO that aims to provide community services to Southeast Asian countries other than the Philippines. At the end of 2021, YGG SWA received a total of $15M in financing. Over a year since its establishment in November 2021, it has organized more than 1,000 online events, participated in more than 500 speaking events (including AMAs, interviews, podcasts, etc.), hosted 4 large-scale live events in Indonesia, Vietnam, Thailand and Malaysia, and held 20+ in Indonesia and Singapore The next road show.

YGG Japan: YGG Japan is YGG’s subDAO focused on the Japanese region. The DAO received $2.8M led by Animoca Brands in July 2022. Currently, the DAO mainly focuses on providing development and marketing support for various IP-driven blockchain games in Japan.

BAYZ: Bayz is YGG’s subDAO focused on the Brazilian region. The DAO received a $4M investment from YGG DAO in July 2022. The DAO expanded its community influence by launching a dedicated crypto-related education and content platform website to create and spread the concept of P2E on Twitch, TikTok and other channels. Currently, the DAO has more than 40 content creators, and the share of viewing time on the Brazilian Web3 game Twitch exceeds 70%.

inDigg: IndiGG is YGG’s India-focused subDAO that builds communities through the use of offline and online nodes, which are described as micro-influencers or sub-communities within their guild. Offline nodes include various college and university campuses within the IndiGG network, while online nodes are mini-communities of 5,000 to 15,000 Discord users.

Ola GG: Olag is a subDAO of YGG’s Hispanic-focused countries, such as Mexico, Colombia, and Argentina. The founder of the subDAO is a family office partner managing more than 20 billion dollars of assets; the DAO received $8M in financing in June 2022.

AMG DAO: AMG DAO is YGG’s subDAO focused on Central and Eastern Europe. Currently, the DAO has members in 11 countries in Europe and is the largest gaming guild in Central Europe. Additionally, Troy and SkyGG are subDAOs focusing on Turkey and South Korea, respectively.

Figure 2-4 YGG’s SubDAO layout

2.4.3 YGG’s investment map

As of the third quarter of 2022, judging from its YGGQ3 community report, YGG has collaborated on 55 GameFi projects. Here is a list of its main investment projects:

Table 2-4 List of YGG cooperation projects

2.4.4 YGG community management

By launching the GAP Program (Guild Development Program), YGG expands the community and enhances community cohesion, and promotes collaboration between community members and cooperative games. Participants need to complete the achievements officially announced by YGG, such as participating in cooperative games for a corresponding length of time; recruit a corresponding number of players to join YGG, host high-quality streaming content, etc., to receive YGG token rewards and corresponding NFTs. This plan is one of the key directions of YGG’s current development.

The first season of the GAP Program (Guild Achievement Program): Most of the achievement tasks in the first season were created by game operation managers and community marketing managers in YGGDAO; the first season had 45 achievement tasks, more than 500 participants, and distributed a total of 102,160 YGG tokens and 1,030 NFTs with corresponding achievement certificates. It began operation in April 2022 and ended in July, for a total of 3 months.

The second season of the GAP Program (Guild Achievement Program): In addition to the creation of game operations managers and community marketing managers in YGGDAO, YGG’s partner ambassadors also participated in the creation of corresponding achievement tasks for their respective games; the second season had a total of 116 achievement tasks, involving 13 cooperative games, and a wider range of achievements in the second season. There were not only tasks related to game cooperation, but also added skill-based tasks such as content creation, community tool building, etc., teaching video recording, etc. 。 The number of participating wallets in the second quarter was 603, and a total of 225,226 YGG tokens and 2,063 NFTs with corresponding proof of achievement were distributed; the GAP program for the second quarter began in September and ended in December 2022, for a total of 3 months.

Figure 2-5 YGG Achievement Task Planning Interface

In addition to community members being rewarded with YGG tokens through the GAP program, YGG has also launched a reward vault for cooperative games to incentivize players with guild badges to stake $YGG to receive token rewards related to cooperative games. Currently, the second phase of the Reward Vault is open.

The first phase of the Reward Vault: lasts 90 days. Staking was opened on July 28, 2022, and the rewards began to be released on August 1. The Reward Vaults includes two projects, Aavegotchi and Crypto Unicorns. Stakers can receive token rewards related to the two projects ($GHST and $RBW). In total, more than 3.5 million YGG tokens were pledged after the event ended.

Second Reward Vault: Duration 90 days, staking will be open on November 13, 2022, and rewards will continue to be distributed until February 12, 2023. Users with YGG Guild badges can stake YGG tokens on Polygon Reward Vault and receive League of Kingdoms and Thetan Arena token rewards ($THG and $LOKA).

Summarize:

As the founder of the Chain Game Association, the main focus of the project in 2021 was to promote Axie Infinity and the scholarship system it pioneered, but with the decline of the chain game circuit in 2022, YGG began to gradually invest in high-quality games and move towards a fund model. At the same time, it is committed to incubating games, expanding the community size of its ecosystem, and introducing a layout for its cooperative games in the future.

As can be seen, by establishing a SubDAO, suitable communication and marketing channels are found in each country to expand the popularity and influence of YGG and blockchain games, thus establishing exclusive communities in different countries. This step of strategic planning will help YGG rapidly expand the size of its community when GameFi explodes in the future.

3. Development

3.1 History

Table 3-1 Major YGG Events

3.2 Current situation

3.2.1 Operating Data

As can be seen from the table above, the number of badge holders of YGG is slowly increasing, which indicates that the number of YGG’s badge holders is also slowly rising, but the number of scholarships experienced two quarters of decline. The main reason is that the P2E model did not become a popular game in the second half of 2022, so there were no rewards that could attract new players under the scholarship model. Judging from YGG’s investment situation, the total value of its investment assets ranged from over 100 million in the fourth quarter of 2021 to 30 million in the third quarter of 2022, and the overall asset value fell by 66.3 million %. It can be seen that the bear market has caused a large retracement in its overall assets, but judging from its yield, part of the decline is mainly a retracement in profit, and its overall investment portfolio is still in a positive state of profit.

Figure 3-1 Number of YGG Scholarship Program Scholars

As can be seen from the picture above, the number of YGG scholarships has declined since 2022, but due to the expansion of SubDAO, the overall number of scholarship scholars has remained stable over the next few months, but since mid-2022, it has also shown a downward trend. Judging from the number and amount of YGG’s investments, the games invested by YGG throughout 2022 showed a downward trend in terms of both quantity and amount. It can be seen that YGG’s investment style in games gradually turned cautious during the bear market.

3.2.2 Social media scale

Table 3-3 YGG social media data

3.3 The future

Currently, YGG has not announced its roadmap.

Summarize:

The size of YGG’s community also slowly increased during the bear market, but the game assets it invested in shrank significantly throughout 2022, and its investment style gradually became cautious. In the current situation where there are few mainstream games, investment income will be one of the important sources of treasury revenue. In the future, it is necessary to continuously observe changes in its treasury to determine whether the project can survive the bear market stage in the future.

4. Economic models

The native token of Yield Guild Games is YGG, with a total volume of 1,000,000,000.

4.1 Token Allocation

The distribution of YGG tokens is shown in the following table:

Table 4-1 YGG Allocation

Figure 4-1 Detailed chart of YGG token distribution

Figure 4-2 YGG Token Unlock Form

4.2 Coin address analysis

According to data from the Ethereum Browser, as of January 16, 2022, YGG held 18,726 addresses on Ethereum. The share of YGG in the top 10 addresses is 91.86 %，前100名持币地址占比为98.59%. Most of the top 10 addresses are contract and exchange addresses. If the tokens in contracts and exchange addresses are removed, the top 10 chain address holders account for about 4.52% of their holdings, and the concentration of positions is low.

Figure 4-3 Distribution of YGG coin holding addresses

Figure 4-4 Changes in YGG’s coin holding address

Judging from Nasan coin address data, the number of YGG’s coin addresses grew rapidly until 2022, and maintained a slow growth trend after the second half of 2022.

4.3 Token usage

Currently, the main roles of YGG tokens are as follows:

1. Staking tokens can receive rewards from relevant sub-DAO tokens, or token rewards for game projects cooperating with them;

2. DAO members holding YGG tokens can initiate voting on proposals through their website, including not limited to the following topics: 1) technology; 2) products and projects; 3) token distribution; 4) governance structure.

5. Competition

5.1 Industry analysis

The track where YGG is located is the Chain Tour Guild Track.

5.1.1 Industry Overview

In the traditional game field, game guilds are formed so that players can gather, cooperate, and defeat replicas or kill big bosses together. For example, in “World of Warcraft,” top guilds tend to fight for the first clearance of each copy or the first kill of a monster; in addition to this kind of guild with strong cooperation, traditional game guilds also focus on social networking among players or sharing game content, etc., and become game community locations.

In Web3, due to the rise of the Gamefi circuit in 2021, the explosion of Axie Infinity triggered a gold frenzy among blockchain players. However, for most gamers in low-income countries, the configuration cost of a 600 US dollar pet that often requires three to start a battle is unaffordable for many players. In this environment, the emergence of chain game guilds has greatly lowered the threshold for players to enter P2E games. Among them, the scholarship system pioneered by Yield Games has led the Chain Game Guild Rise.

The scholarship system is currently one of the important mechanisms of the Chain Tour Association. As shown in the following figure, the scholarship system is formed by three parties operating:

For players who lack the NFT assets needed to enter the game, they can apply to the guild for a part-time job, lend NFT assets, and spend time to earn in-game token rewards; for the guild, they need to purchase a certain amount of NFT assets to lend to players who have passed the application; for community managers, this role needs to attract, screen, and train qualified players; among them, the tokens earned by players need to be shared with the guild and community managers. Currently, YGG’s share ratio is 71, or 70 of the revenue that players can receive With %的代币，社区经理可以获取收益20% tokens, guilds can obtain tokens with a profit of 10%.

Figure 5-1 Scholarship System Business Process

Since Axie Infinity generated a large amount of profit for gold players in the first half of 2021, the profit model of the Chain Game Guild under this system was verified to be feasible. As the YGG community grew, the circuit gradually began to show more guilds to explore the potential of chain game players. As can be seen from the following chart, the financing volume of the Chain Game Guild in 2021 showed a sharp upward trend. In December 2021 alone, the monthly financing amount exceeded $40M, showing exponential growth, but the financing situation of the 2022 Chain Game Guild was relatively average.

Figure 5-2 The financing situation of the 2021-2022 Chain Game Association

5.1.2 Chain game guild features

In addition to the link games mentioned above, which can lower the entry threshold for players, game associations also play an important role in guiding games to acquire new users. For example, in the scholarship system, community managers will train players on basic cryptocurrency knowledge such as how to create wallets, how to use wallets, and how to trade on DEX. Through this method, traditional gamers can get started quickly and expand the user base of blockchain games.

With the development of the Chain Game Guild over the past year, it has begun to gradually present the following characteristics:

1. Limitations of the scholarship system: The scholarship mechanism essentially helps Gamefi bring in more players who mainly play for money. In the early stages, this group could help the game attract popularity and expand the gaming community, but once it enters the middle to late stages, in the current situation where the general token model design of the chain game circuit is immature, and death spirals abound, the damage caused by huge financial users to the game itself is extremely serious, which will accelerate the collapse of the GameFi economic model.

This means that it is difficult for the scholarship system to operate for a long time in a single GameFi. Guilds need to constantly search for profitable GameFi before they can make a profit. However, during the bear market, there are not many profitable GameFis, which will cause the guild’s income to become cyclical;

In addition to this, at present, the Chain Game Association’s normal scholarship system only applies to P2E games, and P2E games, without exception, have now reached a stage of depression. In the long run, it is difficult to determine whether P2E chain games will continue to exist or die out.

However, as the development of the GameFi circuit gradually matures, more and more GameFi have begun to have their own rental systems, such as Starshark and Pegaxxy; the emergence of leasing systems will also put a strain on the audience players of the scholarship system. Once more players choose to use a rental system rather than a shared scholarship system like YGG, the revenue of this type of guild will drop drastically.

2. The regional nature of guilds is serious: Currently, mainstream guilds are mainly distributed in Southeast Asia. For example, YGG, the largest guild on this track, its main community players are in the Philippines, while the main GuildFi community dedicated to the development of Gaas (Guild-as-a-Service) is located in Thailand, while Vietnam’s largest chain game club is Ancient 8.

3. Future development presents funding and functionality: After the scholarship model was successful, guilds began to search for the next “Axie Infinity”, so now guilds generally participate in early NFT pre-sales of chain game projects, and are committed to obtaining a certain number of NFTs through early cooperation in preparation for later game launches;

In addition to NFT, the Guild will even act as an early investor in many chain game projects, transforming its role from an NFT rental agency and player community to an investment fund for the chain game circuit;

In addition to the direction of fundalization, there are also guilds that are experimenting with exploring other development directions, such as providing data services, community services, and drainage services for cooperative projects, and providing systematic management services for the guild’s scholarship system and income system, that is, developing in a functional direction.

4. It is highly dependent on the development of the chain game circuit: Whether the income of the Chain Game Association depends on the scholarship system or the return on investment in GameFi, both are based on the development of the chain game circuit. The chain game circuit is still in its early stages, and there is plenty of room for growth in the future. As a game guild, whether it can grow with this track and ensure that its portfolio value continues to be profitable is critical.

5.2 Track project

As shown in the following figure, the current top 1000 projects in the chain game guild circuit include Merit Circle, Yield Guild Games, and GuildFi. Since the Merit Circle mechanism is similar to YGG but YGG is not perfect, the next step is to compare Yield Guild Games with GuildFi mainly.

Figure 5-3 Chain Game Guild Market Value Ranking

5.3 Comparison of competitive product factors

5.3.1 Competitive product project mechanism

Yield Guild Games: YGG was founded by 3 founders who are deeply involved in the mobile game industry and the chain game industry, respectively. It is currently the largest chain game guild in the crypto industry. YGG has a complete scholarship system and subDAO system; if players want to join YGG, they need to first create a YGG Guild Badge, or Guild Badge, on its official website. This badge is a tool for players to enter the YGG website portal. Players then register for scholarships, check their achievements, and participate in SubDAO token sales.

Figure 5-4 YGG official website page

In addition to the scholarship system introduced in 5.1.1, another major mechanism of YGG is to create different subDAO, or sub-guilds, based on different regions and games. When a subDAO is created, such as a game-oriented subDAO, YGG will first research the game, then buy NFT assets within the game and put them into its treasury wallet, and finally appoint SubDAO managers to transfer NFT assets into smart contract wallets controlled by SubDAO;

At the same time, YGG will also issue subDAO tokens, such as the subDAO created by YGG for League of Kingdoms. The token name is YGGLOK. After the subDAO token is issued, YGG will keep some of its SubDAO tokens to participate in its governance later;

From a functional point of view, YGG, as the main DAO, will be more inclined to cooperate with more game players, invest and manage their treasury assets; while most of the work of incubating and diverting specific games will be carried out by subDAO; at the same time, for regionalized subDAOs, such as YggJapan, YGGSEA, which invests in games in Japan and Southeast Asia respectively, subDAO will recruit local talents to manage and organize activities locally on a regular basis. It is committed to developing the localization of the guild and expanding YGG’s in various regions Influence.

Figure 5-5 SubDAO Founding Flowchart

Furthermore, SubDAO will have independent asset management rights and a scholarship sharing mechanism, that is, the scholarship sharing ratio for games that can be set and managed on its own; subDAO’s tokens essentially represent the basic value of its treasury assets. If games managed by SubDAO generate a large amount of revenue, YGG’s main DAO will also benefit from this because it holds its subDAO tokens, that is, the value generated in SubDAO will eventually accumulate into YGG’s governance tokens.

Currently, YGG has a total of 11 subDAOs, as shown in the following table:

Table 5-1 SubDAO under the YGG layout

5.3.2 Business data comparison

Table 5-2 Number of cooperative game projects

Table 5-3 Community Data

As can be seen from the table above, the number of YGG cooperation projects is superior to GuildFi in terms of quantity and quality. On the one hand, it is because YGG’s development direction tends to move towards the investment side and the community side, while GuildFi is more likely to move towards the functional side; judging from community data and community size, the number of YGG scholars is far higher than GuildFI. Judging from the size of its community, YGG’s community size under its overall ecological landscape is far larger than GuildFi; judging from community activity, the community size of the two is far greater The degrees are all at a high level.

Table 5-4 Treasury Asset Comparison

As can be seen from the table above, the vast majority of YGG’s treasury assets are non-stablecoin assets, mainly YGG tokens, which account for more than 80% of non-stablecoin assets, so its overall treasury assets are greatly affected by YGG token prices, while nearly half of GuildFi’s assets are stablecoin assets. Under such asset allocation, when faced with a bear market in the crypto market, the value of YGG’s treasury assets may face a sharp decline compared to GuildFi.

Summarize:

Currently, the Chain Game Guild circuit is not large, and the community size is not even comparable to the number of users of popular chain games. There is still plenty of room for growth in the scale of the entire circuit. After nearly a year of development, the Chain Game Guild has begun to show a trend of funding, functionalization, and localization;

Among them, YGG, the leading project of this circuit, is committed to investing in and cooperating in high-quality chain games in the early stages, creating different subDAO organizations according to different regions and game projects to expand its ecological footprint; while GuildFi, in addition to the basic direction of cooperating with chain game projects to create a community to attract them, is also committed to developing in a functional direction, and has become a guild service platform through the development of tools such as scholarship management systems, cooperative game data panels, and guild discovery, etc., forming two different development paths with YGG;

Judging from business data, YGG is currently slightly superior to GuildFi in terms of community size and number of cooperative games. Judging from the size of the community, YGG has a greater advantage, and YGG’s high-quality chain games may further benefit its development in the future; however, judging from the financial situation of the two, GuildFi’s financial situation is better than YGG. Currently, the competition pattern on this track is not intense, and there may be a possibility that many guilds will split market share together through different advantages in the future.

6. Risk

1) Track risk: The track is highly dependent on the development of the chain circuit. Whether the income of the Chain Game Guild depends on the scholarship system or the return on investment in Gamefi, both are based on the development of the chain circuit. If the chain circuit does not develop well, it will greatly limit the upper limit space of the track.

2) Financial risk: YGG’s treasury assets shrunk significantly in the second quarter. In the current situation where there are few gold games in chain games, investment income will be one of the important sources of treasury revenue. In the future, it is necessary to continuously observe changes in its treasury to determine whether the project can survive the bear market stage in the future.

Disclaimer：

1. This article is reprinted from [头等仓]. All copyrights belong to the original author [头等仓区块链研究院]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.