Overview of GameFi and Analysis of YGG

The concept of GameFi combines decentralized financial elements with gaming, with the core feature being "play-to-earn". It transforms assets from traditional games into NFTs or FT on the blockchain through blockchain technology, granting financial attributes to games. This gives gaming items unique and collectible value, and players truly own the related data.

Putting game data assets on the blockchain is a win-win choice. Game companies can collect taxes in the secondary market, and users can earn profits through the game. This reduces the flow of funds and items for many studios and maintains the game ecosystem. As user participation increases, the game will incentivize the creation of more gameplay, enrich game content, and promote a positive cycle of content production.

Currently, there are some issues with the playability of GameFi and the sustainability of capital flow. However, games are still the preferred choice for breaking the circle; a decline in popularity helps refine the user base and allows project teams to settle down and solve problems. The GameFi ecosystem is relatively healthy, with DAOs like YGG integrating resources to form a community of healthy competition. The full-chain game narrative led by Dark Forest is also gradually unfolding.

YGG is a gaming profit-earning community based on blockchain technology. It supports NFT assets and connects a global community of blockchain players and investors, dedicated to providing players with opportunities to earn profits through gaming across multiple blockchain games. YGG has initiated several profit-earning programs and operates its management and operations in the form of a DAO.

YGG was founded by Gabby Dizon and Archie Oclos in 2020, aiming to create a game earnings community based on blockchain technology. After its establishment, YGG rapidly developed, first partnering with Axie Infinity to launch an NFT game earnings program. It then continued to expand its influence, collaborating with more games and developing new earning programs. YGG has successfully raised funds multiple times, gaining support from well-known investors, which indicates a positive outlook for the GameFi market.

The YGG token is the native token of YGG, allowing holders to participate in community governance decisions, share profits, and receive incentives. It is tradable on various exchanges, providing liquidity for holders. As of August 8, 2023, the assets managed by the YGG treasury are valued at $185.74 million, mainly derived from its native token.

The core mechanisms of YGG include guild organizational structure, revenue distribution and sharing, and cross-game ecosystem collaboration. The guild structure consists of a core committee and player guilds, as well as regional guilds and sub-DAOs. Revenue distribution is based on a proof of contribution mechanism, implementing proportional distribution. YGG encourages cross-game asset management, community collaboration, and revenue sharing.

The sustainability of YGG's development depends on factors such as its business model, the development of the blockchain gaming market, regulatory environment, and community participation. Currently, GameFi faces challenges in its economic model and market environment, but YGG is still actively seeking cooperation and innovation. The key to future development lies in the ability to maintain and enhance community engagement, as well as to respond to the ever-changing market and regulatory environment.