Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) and Web3 gaming guild that invests in non-fungible tokens (NFTs) used in blockchain-based games. The organization's primary model involves lending these in-game assets to players, known as scholars, who use them to earn rewards in a system commonly referred to as play-to-earn (P2E). ^{[1] [2]}

Overview

Yield Guild Games was established to create a large-scale virtual economy by organizing a global community of gamers. The guild operates by acquiring income-generating NFTs, such as virtual land, characters, and in-game items, from various blockchain games and lending them to its members. This "scholarship" program allows players who may lack the initial capital to access P2E opportunities and earn income, which is then shared between the scholar, the guild, and a community manager responsible for training and support. ^{[3] [1]}

The project originated in the Philippines as a response to economic hardships exacerbated by the COVID-19 pandemic, with co-founder Gabby Dizon lending his personal Axie Infinity NFTs to community members. This initiative demonstrated the potential for blockchain gaming to provide a viable source of income, becoming the foundational concept for YGG. ^[3] Since its inception, YGG has evolved from a single guild focused primarily on Axie Infinity into a broader "guild of guilds" protocol. This evolution was formalized with the publication of its Guild Protocol Concept Paper in September 2024, marking a strategic shift toward providing infrastructure for other guilds to operate and build on-chain reputations within the Web3 ecosystem. ^[4]

YGG's mission is to serve as a community-based user acquisition platform for game developers while providing economic opportunities for its members. The DAO is governed by holders of its native YGG token, who can vote on decisions regarding investments, governance rules, and treasury management. The guild has attracted significant support from venture capital firms and has established partnerships with over 80 blockchain games and infrastructure projects. ^{[5] [6]}

History

Yield Guild Games was founded in 2020 by Gabby Dizon, Beryl Li, and a pseudonymous co-founder known as "Owl of Moistness." ^[7] The guild's formation was heavily influenced by the economic impact of the COVID-19 pandemic in the Philippines, where Dizon began lending his Axie Infinity game assets to unemployed individuals, enabling them to earn income. This grassroots effort became the blueprint for YGG's scholarship model. ^[3]

In 2021, the project secured a $4.6 million seed funding round led by venture capital firm Andreessen Horowitz (a16z). This investment was finalized prior to YGG's public token sale, which took place on July 27, 2021. ^[3] The launch of the YGG token marked a significant step in decentralizing the guild's governance. By August 2021, the guild had grown to over 4,700 scholars who had collectively earned more than $8.6 million. The guild's rapid expansion continued, and by March 2022, it reported having over 20,000 active scholars. ^[1]

In September 2024, YGG published its "YGG Guild Protocol Concept Paper," signaling a strategic pivot from operating as a single, monolithic guild to becoming a foundational protocol for the broader Web3 gaming ecosystem. This new direction focuses on providing tools for other guilds to establish on-chain identities and manage their operations. ^[4] Throughout its operation, YGG ran a seasonal community engagement initiative known as the Guild Advancement Program (GAP). After ten seasons, the program officially concluded on August 1, 2025. In May 2025, YGG's publishing arm, YGG Play, launched its debut first-party game, LOL Land, which attracted over 25,000 players during its opening weekend. ^[8]

Technology and Operating Model

YGG's operations are built on a combination of a decentralized governance structure, a unique asset-lending model, and an evolving on-chain protocol designed to support a network of guilds.

DAO and SubDAO Structure

YGG operates as a Decentralized Autonomous Organization (DAO), where governance is controlled by YGG token holders. The main DAO oversees the treasury, major investments, and the overall strategic direction of the guild. To manage its diverse portfolio of games and regional communities, YGG employs a SubDAO structure. Each SubDAO is a specialized, semi-autonomous arm of the main guild that focuses on a specific game or geographic region. This modular structure allows for tailored strategies and asset management optimized for the unique economies and player bases of different games and locales. For example, the partner guild Ola GG was established to expand P2E opportunities specifically for Spanish-speaking communities. ^{[1] [7]}

Scholarship Program

The core of YGG's initial operating model is its scholarship program. The guild's treasury invests in yield-generating NFTs from various P2E games. These assets are then lent to guild members, or "scholars," who may not have the financial means to purchase them. Scholars use these NFTs to play games and earn token rewards. The earnings are typically distributed according to a three-way revenue-sharing agreement between the scholar, the YGG DAO treasury, and a Community Manager. Community Managers are local leaders responsible for recruiting, training, and mentoring scholars, playing a crucial role in the guild's onboarding process and grassroots expansion. ^[3]

Guild Protocol and On-chain Reputation

Reflecting its evolution, YGG has developed a Guild Protocol, a blockchain-based framework that provides tools for guilds to manage their treasuries, track member achievements, and establish on-chain identities. A key feature of this protocol is an on-chain reputation system that utilizes Soulbound Tokens (SBTs). SBTs are non-transferable NFTs awarded to players for completing specific quests, winning tournaments, or making significant community contributions. These tokens serve as immutable, verifiable credentials of a player's skills and history, which can unlock access to more exclusive opportunities within the YGG ecosystem. This system aims to create a standardized, cross-game reputation that players can build and leverage over time. ^[4]

YGG Play

YGG Play is the game publishing and distribution arm of Yield Guild Games. It was established to support the Web3 gaming ecosystem by launching first-party titles and partnering with third-party developers. YGG Play provides services such as game discovery, community questing campaigns, and a token launchpad. Its debut self-published game, LOL Land, was launched in May 2025. In July 2025, YGG Play announced its first third-party publishing partnership with the on-chain RPG Gigaverse. ^{[8] [9]}

Tokenomics

The native token of the Yield Guild Games ecosystem is YGG, an ERC-20 token built on the Ethereum blockchain.

• Total Supply: The maximum supply of YGG is capped at 1 billion tokens. ^[10]
• Token Utility: The YGG token serves several key functions within the ecosystem:
  • Governance: Token holders can propose and vote on DAO governance decisions, including treasury management, SubDAO creation, and investment strategies.
  • Staking: Users can stake YGG tokens in various "YGG vaults" to earn rewards generated from the guild's diverse activities, such as NFT rentals or game-specific revenue streams.
  • Service Payments: The token can be used to pay for services within the YGG network.
  • Exclusive Access: Holding or staking YGG can grant access to exclusive content, merchandise, and premium quests or tournaments on the guild's platforms.
  • Guild Creation: Under the Guild Protocol, users are required to burn YGG tokens to create new on-chain guilds. ^{[1] [4]}
• Token Distribution: The total supply of 1 billion YGG tokens was allocated to various stakeholders to foster long-term ecosystem growth. The distribution is as follows:
  • Community: 45%
  • Investors: 24.9%
  • Founders: 15%
  • Treasury: 13%
  • Advisors: 1.85% ^[10]
• Multi-chain Presence: While originating on Ethereum, the YGG token has expanded its presence to multiple blockchain networks to improve accessibility and reduce transaction costs. These networks include Ronin, Polygon, BNB Chain, Base, Harmony, and Abstract, an Ethereum Layer 2 solution. ^[5]

Ecosystem and Partnerships

YGG has cultivated a broad ecosystem through strategic partnerships with game developers, venture capital firms, and a growing network of sub-guilds.

Game Partnerships

YGG has established partnerships with over 80 blockchain games, investing in their in-game assets to support its scholarship programs and provide opportunities for its members. The guild's portfolio includes a wide range of genres and platforms. Notable game partners include:

• Axie Infinity
• The Sandbox
• Illuvium
• Splinterlands
• Star Atlas
• League of Kingdoms
• Crypto Unicorns
• MapleStory Universe
• Blade of God

This diverse portfolio allows the guild to mitigate risks associated with any single game's economy and offer a variety of experiences to its community. ^{[11] [1]}

Investors and Supporters

The guild is backed by a number of prominent venture capital firms and entities within the cryptocurrency and gaming industries. This financial and strategic support has been instrumental in its growth and asset acquisition strategy. Key investors include:

• Andreessen Horowitz (a16z)
• Delphi Digital
• Animoca Brands
• DWF Labs
• Bitkraft
• Galaxy Digital
• ParaFi Capital
• Mechanism Capital

YGG also maintains a strategic partnership with Polygon, a Layer 2 scaling solution for Ethereum. ^[6]

Sub-Guilds and Regional Expansion

As part of its "guild of guilds" strategy, YGG supports a network of independent SubDAOs that cater to specific games or regional communities. This model facilitates localized growth and management. A prominent example is Ola GG, a partner guild focused on onboarding and supporting the Spanish-speaking gaming community in Latin America and other regions. This decentralized approach allows YGG to scale its operations globally while maintaining a strong local presence. ^[7]

Team

Yield Guild Games was co-founded by three individuals: Gabby Dizon, Beryl Li, and an anonymous co-founder known as "Owl of Moistness." ^{[7] [3]}

Gabby Dizon, a gaming entrepreneur from the Philippines, is credited with pioneering the scholarship model that became the foundation of YGG. His early efforts in lending his personal Axie Infinity assets to his local community during the COVID-19 pandemic demonstrated the real-world economic potential of play-to-earn gaming and served as the catalyst for the guild's creation. ^[3]

Quotes

In an announcement detailing their investment in YGG, Arianna Simpson, a General Partner at Andreessen Horowitz, commented on the significance of the play-to-earn model:

"This new model, termed 'play-to-earn,' marks a meaningful evolution in gaming economies." ^[3]

Simpson also highlighted the mission-driven approach of the founding team:

"What first stood out to us about the YGG team was their passion for creating the biggest virtual economy in the world in order to improve the lives of more people in more places." ^[3]