Are Gaming Guilds The Future?
Here’s What You Need To Know
We often discuss the rise of crypto gaming and the components of that make up the sector. One aspect that needs to be revisited are the crypto gaming guilds. Back in November, we covered the best guilds in the sector. Guilds have continued to be an excellent way for prospective investors and players to gain exposure to the overall sector while learning at the same time.
Crypto gaming guilds became popular after the launch of Axie Infinity. Since then, there has been an emergence of various guilds within the sector that allows participants to experience crypto gaming with half of the risk. Not only are guild participants bullish on crypto gaming guilds, the true power of gaming guilds have also been recognized by the best and brightest within the space.
What are play & earn gaming guilds?
Play-and-earn crypto gaming guilds are organizations composed of investors, gamers, and managers that purchase in-game assets for games such as land, characters, or items, then lend them out for hundreds or thousands of players to play with.
The use of these assets earn yields within those gaming assets ecosystems - earning for the players & the guild simultaneously.
This empowers individuals and communities to participate in NFT & crypto games without upfront capital. Pushing players to get a head start in Play & Earn crypto economies, as well as making NFT assets more accessible for all, creating a win-win for the space.
Guilds made a Huge splash in 2021/2022
Crypto gaming guilds have made huge waves this year in not only the membership numbers, but the revenue department as well. Guilds like Neo Tokyo, YGG, and Merit Circle have continued to deliver value to the community members since these guilds were launched.
In January, S1 Citizens reached a floor price of 43 ETH with Outer Citizens reaching a 10 ETH floor.
It is also worth mentioning that Neo Tokyo Citizens also earn passive income through the delivery of $BYTES.
Aside from Neo Tokyo, YGG and Merit Circle brought in huge revenue numbers (primarily from Axie infinity)
“Since the program’s beginning, YGG scholars have collectively generated over US$13.6 million in SLP” - Medium
YGG and Merit Circle have also achieved some pretty hefty capital raises.
It’s not hard to see how transformative crypto gaming guilds have been when it comes to creating a new lane for players and investors to benefit from participating.
We even saw Crypto Twitter’s beloved Pentoshi join the ranks of Merit Circle as head of partnerships.
Why guilds may be the best R/R play in Crypto Gaming.
Crypto gaming guilds their communities, and their tokens may serve as the best point of entry for anyone interested in participating in the crypto gaming sector. There are various factors/attributes of gaming guilds that make them the best option for investors and players. These are a few of the reasons that gaming guilds have the perfect R/R (Risk Reward) ratio in crypto gaming:
The popular saying goes, “two heads are better than one.” Multiply this by 100x or 1000x and think of possibilities that can occur when everyone has the common goal of finding the best projects in the space.
Granted there is always the risk of there being too many cooks in the kitchen, but that depends on the size of the kitchen. The crypto gaming sector is an enormous space that continues to grow by leaps and bounds. This makes it almost impossible to keep up with all of the happenings in the space without having access to a network of other enthusiasts and experts.
Guilds can also serve as a protective measure as well. Oftentimes you will find members that are current or former developers that are capable of reading and deciphering smart contracts – meaning that you could potentially be saved from falling for scam projects.
Guild research also comes in handy when it comes to finding new gaming projects earlier than anyone else – which is probably the most valuable aspect of participating in a guild.
Gaming Guilds and their models are very simple to research on their own, while game trends, economic viability, & playability are harder to assess.
Gaming Guilds have a much larger “moat” than P2E games themselves as Guilds participate in many games, so if any one game fails, they still have revenue from others. If a game itself fails, the holders are left holding a bag that may bleed to 0.
Simple Revenue Generation Model to drive value back to investors
Many guilds lend or allow owners to lend their NFTs to players (scholars) that lack the start-up funds to participate in P2E games through what is known as a scholarship program.
The scholars then split profits earned from playing the game with the owners and the guild. This essentially allows scholars to earn free of charge – other than a little sweat equity – and
Guilds also allow previous scholars to earn by becoming mentors to newer scholars, and teaching them methods and strategies that will assist them on their path to success.
The Guild’s split of the scholarship earnings are in many cases driven back to their token holders. In addition, many guilds are purchasing passive assets in the metaverse that have potential to add value to investors.
The power to make decisions
Crypto gaming guilds essentially double as DAOs. Ownership of a guild’s native token can grant holders governance rights that will allow them to vote on different decisions.
Depending on the size of the guild and the amount of games the guild participates in, there may be subDAOs – mini DAOs that are dedicated to a certain game or ecosystem – within these DAOs.
SubDAOs are good because they allow experts in a particular ecosystem to congregate and discuss different strategies and/or become mentors.
Potential Higher Ceiling as some games may act as P2E index
Certain guilds allow players to stake the guild’s native token to different vaults (DFK, Axie, Raid Party, etc) to earn a portion of the rewards.
Some vaults allow you to gain exposure to a mixture aka an index of different P2E games. This also creates a layer of insulation that protects investors from losses that they could otherwise incur from direct exposure to one P2E game.
Gaming Guilds and organizations like YGG, Merit Circle, Avocado Guild & Perion and their respective tokens grant investors exposures to the P2E space without having to understand the current Gaming “Meta”.
Gaming Guild tokens may act as an index granting exposure to all of the games that the guild owns assets and is participating in - due to their revenue being tied to the games they are exposed to.
Crypto gaming guilds communities serve as a HUB for players and investors of all levels of experience. Not only will participants be afforded the opportunity to receive scholarships, they will also have the privilege of supporting projects earlier than the masses. That is what makes gaming guilds so powerful.
Another excellent benefit of gaming guilds are the networking opportunities. For example, Neo Tokyo is filled with developers, founders, and different subject matter experts. Everyday connections are being made that lead to the formation of crypto teams that go on to build great products. This is the power of crypto gaming guilds.