How YGG Makes Play-to-Earn Economically Sustainable
Early models were not sustainable, with inflationary tokenomics, high barriers to entry, and no value for players in the long term. Most early play-to-earn games came with inflationary tokenomics, expensive entry, and no value for players in the long run. Yield Guild Games has been one of the major innovators when it comes to solving these issues. Instead of focusing on renting game assets, YGG built a wider ecosystem that supports long-term sustainability. It does this by lowering the barriers to entry, diversifying its treasury, creating value through player skills, and building a strong structure with its DAO and SubDAOs. This will turn play-to-earn from a temporary trend to a long-lasting economic opportunity for players all around the world.
One of the biggest issues with early play-to-earn models was how expensive it was to get started. Games like Axie Infinity required players to buy expensive NFTs before they could start earning any money. YGG solved this with its scholarship program in which the DAO buys game assets and lends them to players who cannot afford them. The players, known as scholars, will then use these to play the game and split the earnings among themselves, YGG, and their manager. This model reduces entry barriers, ensures that idle NFTs are utilized, and aids the growth in game communities by onboarding more players. A larger active player base contributes to strengthening the long-term health of any in-game economy.
This proves that player-owned economies in gaming will work-if backed by the proper structure and long-term vision.
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