Yield Guild Games(YGG) is a play-to-earn(P2E) gaming guild and now it has evolved to investment DAO. First time, when I encountered the name of YGG I though it might be new game or game platform that offers a variety of games like GALA Game. But it was not.

It was a sort of big size gaming guild that own many P2E NFTs and has its own organization to manage its revenue source, NFT renters organically. Maybe utilizing game specialists and enthusiasts as managers or game ecology analyzer, it may have maximized its earnings from P2E. And through earned profit, it may purchase many rare and high profit NFTs that would generate more profit again.

P2E game filed is still very volatile and has many obstacles to get over to be a strong cultural and business model regarding regulatory, low consumer base and technical immaturity. But YGG is making its own way among all these unclear environment.

Many game players do not have enough asset to start P2E games that generate and ask expensive NFTs to earn its reward token. So some NFT holes rent their own one to players, we call it “Scholarship”. Scholarship recipients pay its earning to NFT owners or lenders. As I mentioned before, YGG is big scale of this scholarship model adding investment business line. Players takes 70% of the reward, YGG takes 10% and managers have 20%.

Up to now, totally YGG has generated $13M that mainly comes from Axie Infinity. The revenue from Axie Infinity consists of breeding and selling Axie and acquiring SLP token from renters. And it has its won SubDAO by game.

YGG has broaden its territory to a variety of games including ZEN RUN, Aavegotchi, Stat Atlas, Sandbox etc purchasing valuable NFTs continuously.

But I think its focus seems to be limited still not including high potential future games and should find alternatives of Axie Infinity. Ans in case of rapid game trend change, it may have NFT liquidation issue. The successful business sustainability may depend on flexible and fast trend catch and smooth portfolio adjustment. But this sort of portfolio change may require much manpower resource with solid decision maker.

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