Gabby Dizon ,the founder of YGG (Yield Guild Games) likes to say that the company is like the marriage of Berkshire Hathaway and Uber. Berkshire Hathaway is a holding company for many businesses and YGG s a holding company for many play-to-earn gaming assets. For a while now YGG has been buying up NFTs, governance tokens, and ownership stakes in many projects that have a promising future within the Play-to-earn sphere.
In relationship with her comparison to Uber, you can say that YGG pairs gamers who want to play with NFTs that can be played with, much like drivers to riders. There are many new kinds of business models based on play-to-earn and NFTs. The model of YGG is very simple as there are scholars and community managers. Scholars are the ones that receive the NFT to play with- usually with a QR code that lets them use the NFT but does not relinquish ownership to them. The Community Managers are essentially the owners of said loaned-out NFT. Their job is to recruit and train all new scholars. The scholars play the game and earn the currency with the help of the characters loaned out to them. The community managers make 20% from the profits made that day and YGG takes 10%, leaving the scholar -the one who actually did all of the work that day, with 70%.
With this business model and the explosive growth of Axie Infinity, the company has gone on to make an amazing amount of profit. The next step would be of course to take on another project that has a bright future ahead, enter Star Atlas.
YGG has a plan
Star Atlas is a space exploration game and blockchain metaverse that is being built with Unreal Engine 5. This means that this game is meant to be very serious and the development is not being taken lightly. YGG has decided to purchase assets from the Star Atlas universe in order to help players play the game and earn an income.
YGG has a major plan that involves the “lease” of these assets to players who want to play and earn. The creators of Star Atlas and YGG have expressed that their visions are aligned and they wish to aggregate gamers to the platform and enable various economies through the use of NFT applications.
The model that is used by YGG is the same model that was used for Axie Infinity- the use of NFTs which are unique and value-based assets or collectibles used for gameplay to earn yield by operating, selling, or leasing said collectibles. It won’t matter where you are in the world, if you can receive a position with YGG as a scholar then you should be able to play games to earn income. “In this groundbreaking model, NFTs will allow gamers all over the world to earn actual money,” said Michael Wagner, CFA, co-founder, and CEO of Star Atlas.”
“Star Atlas and YGG have partnered because we truly complement each other’s strengths. YGG will provide access to burgeoning gaming communities based in the Philippines and throughout Asia, while Star Atlas will build the metaverse in which YGG guild members earn yield. ,” said Pablo Quiroga, co-founder and COO. It is quite obvious the motivations of the partnership, with Star Atlas as a partner YGG now has access to an AAA level game on which to market its leasing system, Star Atlas gains a massive group of incoming players and future buyers.
The game is planned for the Solana protocol which will establish a largely serverless and secured gameplay opportunity for all players. NFTs that are obtained and traded within Star Atlas create a marketplace that mimics the feel of real-world assets and ownership. At the current time of this writing YGG plans to purchase $1M worth of assets to use for their business practice with the possibility of more when Star Atlas provides them for sale.
The content of this article, analysis, report, or webpage is not investment advice and does not constitute an offer or solicitation to offer or recommend any investment product. This content is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. The author may hold digital assets mention in this report.
Remember you can join us on our various social media accounts: