Yield Guild Games pioneered the blockchain gaming “scholarship” model: the guild buys expensive NFT gaming assets (like Axie Infinity Axies), lends them to players (scholars) in developing countries who can’t afford to buy their own, and splits the in-game earnings 70% (scholar) / 20% (guild) / 10% (manager) — creating a new income source for thousands of players in the Philippines and Southeast Asia during the 2021 Axie Infinity boom. YGG is the DAO governance token that allows holders to vote on which games to invest in, treasury management, and guild expansion strategies. At peak, YGG managed over $600M in gaming assets and had 10,000+ scholars earning income through Axie Infinity. YGG’s model became a template for guild DAOs globally.
How It Works
The Scholarship Model:
- YGG treasury purchases in-game NFT assets (Axies, plots of LAND, etc.)
- Scholars (players) are selected and given loaned assets
- Scholars earn in-game tokens (SLP in Axie’s case) by playing
- Earnings split: 70% Scholar / 20% YGG / 10% Manager
- Managers are community members who recruit and train scholars
SubDAOs:
YGG expanded into specialized gaming SubDAOs:
- YGG SEAA — Southeast Asia expansion
- YGG Latam — Latin America
- Game-specific guilds for other blockchain games
Treasury strategy:
YGG token holders vote on treasury allocations to different games. The thesis: gaming NFTs will appreciate as games become popular, generating both capital gains and income from scholarships.
Post-Axie pivot:
When Axie Infinity earnings collapsed in 2022 (SLP hyperinflation), YGG pivoted to diversifying across many games rather than concentrating in Axie — investing in Illuvium, Skyweaver, Guild of Guardians, and others.
Tokenomics
| Metric | Value |
|---|---|
| Max Supply | 1,000,000,000 YGG |
| Team | 45% (vested 2-3 years) |
| Investors | 18.5% |
| Community | 45% |
| Public Sale | 1% |
| Distribution | 3-year vesting schedule |
Use Cases
- Governance — Voting on treasury allocations, game investments
- Community identity — YGG DAO membership and participation
- Scholarships — Access to managed scholarship programs
- SubDAO — Participation in regional guild SubDAOs
History
- 2020 — Gabby Diaz Villanueva and Beryl Li found YGG; invests early in Axie Infinity NFTs
- Jul 2021 — YGG token launches; raises $13.8M from Andreessen Horowitz (a16z) and others
- Aug 2021 — YGG token surges 1,000%+ in weeks; peak market cap ~$3.5B
- 2021 — 10,000+ scholars enrolled; YGG becomes major source of income in Philippines during COVID-19
- Early 2022 — Axie Infinity SLP collapses (hyperinflation of in-game token); scholar earnings drop from ~$300/month to <$30/month
- 2022 — YGG diversifies into 30+ games; SubDAO structure expands globally
- 2023–2024 — YGG continues gaming guild model; partners with major gaming studios for NFT integrations
Common Misconceptions
“YGG is just Axie Infinity dependence.” YGG began with Axie exposure but has since diversified broadly. The scholarship model was applied to dozens of games across multiple genres.
“Scholars in the Philippines were exploited.” During peak Axie earnings, scholars earned $300-1,000/month in a country where average monthly income is ~$400. At the time, the scholarship arrangement was genuinely beneficial for both parties.