Yield Guild Games, a decentralized gaming guild, says that localized approaches will be needed in the blockchain-based gaming industry to attract Web3 users (YGG).
Andy Chou, YGG’s head of ecosystem development, and Brian Lu, a partner at Taiwanese venture capital firm Infinity Ventures Crypto (IVC), talked to Cointelegraph last week at the 2022 Tokyo Games Show about YGG’s future plans, including how it is using its subDAOs.
Late in 2020, YGG was first released in the Philippines. After an early-stage investment from IVC, the two companies worked together to expand YGG globally through subDAOs, starting with Southeast Asia.
YGG terms say that a SubDAO is a “specialized, miniature economy that interacts with a larger, all-inclusive economy.” In July of last year, they were added to the YGG ecosystem.
Many people know YGG for its organization in the Philippines that offers scholarship programs for play-to-earn (P2E) games like Axie Infinity. However, the guild has been slowly expanding to other countries and regions, such as India, Japan, Brazil, and Latin America, using subDAOs.
Chou said that a YGG subDAO is “kind of like its own economy, with its own treasury and its own token.” He also said that each subDAO’s structure and business partnerships depend on the country where it is located.
Chou pointed out, for example, that the idea of YGG scholarships, in which players are loaned NFT assets so they can make money from games, has been a big reason why people in the Philippines use Web3 games, but he doesn’t think this is necessarily true for YGG Japan.
Instead, Chou said that the best way to get people to play Web3 games in Japan is to use the long list of well-known Japanese “gaming IP.” Lu confirmed that they are focusing on “helping market Japanese games” instead of giving scholarships there, saying:
“Everyone wants to get their hands on Japanese intellectual property. […] You have companies like Sega and Bandai Namco that want to change direction and get into the Web3 market.
When asked what he thinks is stopping Web3 gaming from becoming more popular, Chou said that it’s still hard for new users to get started, something that their YGG Japan subDAO has just started to fix.
On Friday, YGG Japan and the tech companies IVC and Web3’s KryptoGO announced that they would work together to make a wallet for blockchain gamers. The three people want to make it easier for people to play blockchain games and store all of their assets in a single place.
Chou said that another problem is that people don’t understand what nonfungible tokens (NFTs) are. Many critics still say that the assets are worthless because they can just right-click on the NFT’s artwork and save it to their computer.
Yield Guild Games: Localization is required for Web3 gaming adoption
Yield Guild Games, a decentralized gaming guild, asserts that the blockchain-based gaming industry will require localized approaches to attract Web3 users (YGG).
Andy Chou, YGG’s head of ecosystem development, and Brian Lu, partner of Taiwanese venture capital firm Infinity Ventures Crypto (IVC), spoke with Cointelegraph last week at the 2022 Tokyo Games Show about YGG’s future plans, including how it is utilizing its subDAOs.
YGG was initially launched in the Philippines in late 2020; however, following an early-stage investment from IVC, the duo collaborated to expand YGG globally via subDAOs, commencing with Southeast Asia.
SubDAOs are a “specialized, miniature economy that interacts with a larger, all-inclusive economy” according to YGG terminology. They were added to the YGG ecosystem in July of last year.
While many may associate YGG with its Philippines-based organization that offers scholarship programs for play-to-earn (P2E) games like Axie Infinity, the guild has been gradually expanding to other countries and regions using subDAOs, including India, Japan, Brazil, and Latin America.
Chou defined a YGG subDAO as “sort of its own economy, with its own treasury and its own token,” adding that the structure and business partnerships of each subDAO vary depending on the country in which it is located.
Chou pointed out, for instance, that while the concept of YGG scholarships — in which players are loaned NFT assets so that they can earn from games — has been a key driver for Web3 gaming adoption in the Philippines, he does not see this as necessarily applicable to YGG Japan.
Instead, Chou suggested that utilizing the long list of well-known Japanese “gaming IP” is the most effective way to attract people to Web3 games in Japan, while Lu confirmed that they are concentrating on “helping market Japanese games” rather than offering scholarships there, stating:
“Japanese IPs are something that everybody covets. […] You have [companies like] Sega, Bandai Namco, all those gaming companies want to pivot and come into Web3.”
When asked what he believes is preventing the widespread adoption of Web3 gaming, Chou stated that the onboarding process for new users is still complicated, something that their YGG Japan subDAO has recently begun to address.
Friday, YGG Japan announced a partnership with IVC and Web3 tech company KryptoGO to develop a wallet for blockchain gamers. The trio intends to create a simplified interface for users to access blockchain games and to host all of their assets in a centralized location.
Chou stated that other obstacles include a lack of understanding of what nonfungible tokens (NFTs) represent, as many critics continue to assert that the assets are worthless because they can simply right-click and save the NFT’s associated artwork.
“Once the onboarding process becomes more streamlined, it will help bring in more people. Even at the educational level, I believe it is necessary to explain what it means to actually possess a digital item. Rather than thinking, “Oh, I can just copy this and get it.”
“Having digital possession of these digital items. It is something that has not been thoroughly explored. But as the world becomes increasingly digital, I believe that’s where many things are headed,” he added.
Beryl Li, blockchain developer OwlOfMoistness, and Gabby Dizon co-founded YGG in 2020. Dizon was also one of the founding members of Oasys, which is expected to launch a gaming-focused blockchain later this year.
As of June, YGG’s global network comprised more than 30,000 scholars. For lending out their NFTs, YGG offers 70% of in-game earnings to players, 20% to scholarship managers, and 10% to the particular subDAO.
“Having that digital ownership of those digital goods. It’s something that just hasn’t really been explored. But as the world gets more and more digital, you know, I feel like that’s where a lot of things are moving,” he said.
In 2020, YGG was started by Beryl Li, the blockchain developer OwlOfMoistness, and Gabby Dizon. Dizon was also one of the people who started the company Oasys, which is going to launch a blockchain for gaming later this year.
As of June, there were more than 30,000 scholars in YGG’s global network. For lending out their NFTs, YGG gives 70% of in-game earnings to players, 20% to scholarship managers, and 10% to the specific subDAO.