The blockchain-based gaming industry will need to consider localized strategies to attract Web3 gamers, says decentralized gaming guild Yield Guild Games (YGG).
Speaking to at Tokyo Games Show 2022 last week, Andy Chow, YGG’s head of ecosystem development, and Brian Lu, a partner at Taiwanese venture capital firm Infinity Ventures Crypto (IVC), talked about YGG’s plans for the future, including how it uses its subDAOs.
YGG was originally launched in the Philippines in late 2020, but following an early investment from IVC, the duo teamed up to expand YGG worldwide through subDAO, initially starting in Southeast Asia.
According to YGG terminology, SubDAOs operate as a “specialized miniature economy that interacts with a larger, overarching economy” under the auspices of YGG. They were introduced to the YGG ecosystem around July last year.
While many may associate YGG with its Philippines-based organization that offers scholarship programs for play-to-earn (P2E) games such as Axie Infinity, the guild is gradually expanding to other countries and regions such as India. Japan, Brazil and Latin America though use subDAO.
Zhou described the YGG subDAO idea as “kind of its own economy that has its own treasury and its own token,” adding that each subDAO has a different structure and business partnership depending on the country it’s in.
For example, Zhou noted that while the concept of YGG Scholarships, in which players are loaned NFT assets so they can earn from games, was a key factor in the introduction of web 3 games in the Philippines, he does not see this as necessarily relevant in the context of YGG Japan.
Instead, Chow suggested that using a long list of favorite Japanese “gaming IPs” is the best way to get people to Web3 games in Japan, while Lu confirmed that they are focused on “helping the Japanese games market” rather than providing scholarships. stating:
“Japanese IP addresses are what everyone craves. […] You have [companies like] Sega, Bandai Namco, all these game companies want to turn around and go into Web3.”
When asked about what Chow thinks is currently holding back the widespread adoption of Web3 games, he noted that the onboarding process is still a difficult process for new users, and their YGG Japan subDAO has recently decided to solve it.
On September 16, YGG Japan announced a partnership with IVC and web3 technology company KryptoGO to develop a wallet specifically for blockchain gamers. While the details in the announcement were sparse, the trio aims to create a simplified interface for users to access blockchain games and place all their assets in one place.
Chou said that other barriers include a lack of knowledge about what NFTs are, as many critics still argue that assets are worthless as they can just right-click and save NFT-related images.
“This whole process of just adapting, once it gets smoother, will help bring in more people. I think even in education [level]simply explaining what it means to actually own a digital item. Instead of saying, “Oh, I can just copy this and have it.”
“Having this digital ownership of these digital goods. This is something that has simply not been explored. But as the world becomes more and more digital, you know, I feel like a lot of things are moving there,” he added.
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YGG was founded in 2020 by Beryl Lee, blockchain developer @OwlOfMoistness, and Gabby Dizon, the latter also co-founding Oasys, which is tentatively set to launch a gaming-centric blockchain later this year.
As of June, the YGG network had over 30,000 scientists worldwide. For loaning their NFTs, YGG is offering 70% of in-game earnings to players, 20% to scholarship managers, and the remaining 10% goes to a specific subDAO.