• Crypto Lists
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Altcoin
  • Advertise With Us
  • Join our Telegram Community
Newsletter
ItsBlockchain
  • Bitcoin
    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    featured image

    How Bitcoin can be hacked?

    keep bitcoin safe

    Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

    featured image

    Bitcoin IRA – Everything You Need to Know

    A trillion dollar tsunami is about to hit Bitcoin

    A trillion dollar tsunami is about to hit Bitcoin

    featured image

    Why Bitcoin will always be the number one cryptocurrency? Explained

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    Trending Tags

    • Crypto Gems
    • NFT
    • DEFI
    • Crypto Lists
    • Altcoin
    • Crypto Market
    • Guide
    • IBC Capital
    No Result
    View All Result
    • Bitcoin
      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      featured image

      How Bitcoin can be hacked?

      keep bitcoin safe

      Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

      featured image

      Bitcoin IRA – Everything You Need to Know

      A trillion dollar tsunami is about to hit Bitcoin

      A trillion dollar tsunami is about to hit Bitcoin

      featured image

      Why Bitcoin will always be the number one cryptocurrency? Explained

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      Trending Tags

      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital
      No Result
      View All Result
      ItsBlockchain
      No Result
      View All Result
      Home NFT

      DAOs like YGG & Merit Circle are building the biggest Play to Earn Economy: here’s why you should pay attention

      Karthik Guttha by Karthik Guttha
      November 25, 2021
      in NFT, Projects
      0 0
      0
      DAOs like YGG & Merit Circle are building the biggest Play to Earn Economy: here’s why you should pay attention
      176
      SHARES
      2.2k
      VIEWS
      Share on FacebookShare on Twitter

      After scoping the overall crypto market, it is clear that play-to-earn gaming is the hottest sector. By leveraging the power of NFTs and blockchain technology, P2E games are providing opportunities for players and network stakeholders to create multiple income sources. This is inspiring the birth of a new industry that can replace DeFi in terms of market cap. It is possible because earning yield from playing video games is an attractive idea that can drive mass adoption faster and develop a revolutionary model of employment in the metaverse. 

      A real-life example of this would be Axie Infinity. The NFT-based video game is the leader in the P2E market. Axie’sAxie’s dual economic model incentivizes players and allows them to trade in-game NFTs on secondary markets. Not only that, but players can also stake native tokens to claim voting rights and rewards. We also saw Axie Infinity change thousands of lives in third-world countries like the Philippines. People who could not manage day-to-day expenses during Covid now earn the same or more income by playing video games. 

      While the growth of Axie is unquestionably impressive, it’s still only the tip of the iceberg for the blockchain gaming industry. It is expected that the gaming market will be valued at nearly $320 billion by 2026. So, there is no reason why play to earn blockchain games in the metaverse can’t match or surpass that number, given the functionality is far superior. 

      Source- CGG

      However, it is impossible to keep up with every single blockchain game in the P2E space and actively spend time playing. For some users, it is even hard to access a play-to-earn game. It is mainly because the entry price is too high. In the case of Axie Infinity, you need to spend at least $1000 to start earning, as each Axie NFT costs between $300-$500. 

      To overcome these challenges and remove entry barriers to the P2E metaverse industry, decentralized autonomous organizations (DAOs) create new platforms to help players with scholarships and give investors exposure to the best performing P2E projects. This article will deep dive into how DAOs like Yield Guild Games (YGG) and Merit Circle (MC) are building the best digital gaming economy with play to earn. 

      DAOs Focussed on P2E offer an intersection of Capital, Expertise, & Players 

      DAOs based on gaming and metaverse continue to be at the forefront of growing the play-to-earn economy. And it makes perfect sense because a community-led DAO can engage with different emerging projects that can maximize earning potential for all stakeholders involved. 

      Buying into a P2E DAO is like taking a diversified investment approach to gain exposure to explosive growth in the blockchain gaming industry. That accounts for the intersection between capital and expertise. For the players, DAOs provide scholarships. They also help players increase their earning performance. More money for the scholars means more revenue shared among token holders. 

      Even in terms of staking, P2E DAOs are proving to be superior to most DeFi platforms. It is mainly because of the DAO structure. Most of the yield guilds out there adopt a non-conventional approach to staking. They create subDAOs that represents a specific component of the guild’s revenue stream. For example, if you believe NFTs like land on The Sandbox or Axies in Axie Infinity are going to skyrocket in value, you can directly stake your tokens in a vault created for NFTs. 

      Staking in YGG DAO (Source- Medium)

      The best part about investing in DAOs like Merit circle or YGG is that every dollar spent turns into working capital for increasing overall revenue. So, as the DAO treasury grows with assets including Axies, Axie Land, Sandbox Land, and Zed Run Horses, the revenue made from each guild activity also increases significantly. 

      Yield Guild Games 

      YGG is one of the biggest community-led DAOs in the blockchain gaming space. When you own the native token of Yield Guild Games, you are investing in the NFT gaming index. Over the years, the DAO has invested in many blockchain games, including Axie Infinity, Sandbox, Iluvium, Zed Run, and League of Legends. More projects are growing under YGG support, but the main income-generating game is Axie Infinity. The treasure DAO of YGG holds more than 26,000 Axies and 240 parcels of Axie Land. Here is a better breakdown: 

      Source- September Asset & Treasury Report

      The DAOs and SubDAOs of YGG use these NFTs and other assets to create multiple revenue streams. Few NFTs appreciate their scarcity, while others generate revenue from rents or earnings from scholars. The community of YGG alone has more than 5,000 Axie scholars. With a large user base and expertise, the DAO owners have all the necessary tools to raise capital for investing in early-stage projects. 

      The DAO structure of YGG allows flexible franchising of other guilds. It gives other projects to leverage YGG’s brand by paying a 10% take rate. This approach is called guilds on guilds. Even though the DAO gets direct value from sub guilds, it does not own any of its assets, which means token holders will not benefit from any price appreciation. This also increases the chances of a SubDao leaving the main DAO. 

      To overcome some of these challenges, a new P2E-based DAO is formed with Merit Circle. Yield Guild Games also invested in Merit Circle to expand its scholarship program in developing countries. I include this project because it broke all BLBP records, raising more than $105 million in less than 72 hours. 

      Merit Circle 

      Merit Circle DAO has flown under the radar for the past couple of months, but its recent MC token auction grabbed the attention of every P2E and metaverse crypto enthusiast. Like Yield Guild Games, Merit Circle also develops the play to earn economy by scaling the scholarship program and investing in more nascent projects. In its recent Balancer Liquidity Bootstrapping Pool (BLBP) launch, it sold more than 41 million tokens to nearly 4000 participants. The team will use these funds to own a stake in many games and accumulate more NFT assets. 

      Credit: Pengzilla

      The key difference between Merit Circle and YGG is their DAO structure. As mentioned earlier, YGG follows guilds on guilds approach, but MC follows a SuperGuilds approach. In this way, $MC token holders have exposure to all SubGuilds under the main brand of Merit Circle, as they are directly integrated into the ecosystem. Also, the take rate is much higher than YGG at 30%. Meaning, the DAO has a 3x better profit margin. Additionally, a SuperGuild can ensure higher standards because there is a more uniform leadership that sets the criteria.

      The fundamentals of Merit Circle show us that they are trying to do everything in-DAO, which will likely build a more engaged and loyal community. It can already be seen through staking. Meric Circle considers the time-weighted element while calculating the staking rewards, ensuring the float is always extremely tight as most of the supply will be locked in staking.

      Closing Statement 

      DAOs like Merit Circle and YGG are not competitors in the NFT gaming space. They aim to collaborate and develop the play to earn the economy. And it is expected to see more such DAOs forming moving forward. As companies are heavily invested in the metaverse and blockchain-based gaming projects, we will see rapid advancements in this space. Also, the rate of adoption will outpace other crypto market segments. When that happens, people will flock to gaming-based DAOs to gain exposure and earn high yield through staking. 

      Karthik Guttha

      Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.

      IBC-Transparent-Logo-(1)

      Subscribe To Our Newsletter

      Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.

      You have Successfully Subscribed!

      Tags: featured
      Share70Tweet44Share18

      Subscribe to get notified on latest posts.

      Unsubscribe

      Related Posts

      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      by Karthik Guttha
      December 26, 2022
      0

      In this article, we will deep dive into DeFI Ecosystem on Tezos, and I will share Top 5 Projects Building...

      Lens Protocol: Everything You need to Know

      Lens Protocol: Everything You need to Know

      by Aniketh Paul
      November 18, 2022
      0

      Lens Protocol is building a blockchain-based open-source social graph to reshape the future of social media in web3. The protocol enables devs to construct social media programs without difficulty. In this manual, we...

      Top 7 NFT Tools to Make You a Profitable Trader

      Top 7 NFT Tools to Make You a Profitable Trader

      by Karthik Guttha
      October 17, 2022
      0

      NFT Tools can change your Flipping Game. In this article, we have covered the Top 7 tools which can help...

      The new Web3 citizenship: SBTs explained in simpler terms

      The new Web3 citizenship: SBTs explained in simpler terms

      by Sabith Ali
      July 9, 2022
      0

      In this Beginner Guide, We'll deep dive into SBTs(SOUL bound tokens), What They are, and how they work. Limitations of...

      MetaOasis: The Next-Gen Game Publishing Platform You Should Care About

      MetaOasis: The Next-Gen Game Publishing Platform You Should Care About

      by Hitesh Malviya
      June 27, 2022
      0

      MetaOasis is the next-generation game publishing platform linking Web2 and Web3. Based on the Avalanche chain, MetaOasis reduces users’ learning...

      Load More

      About Us

      We curate the best cryptocurrency projects with the intention of adding value for investors through the process of selecting, organizing, and looking after different projects available in the cryptocurrency market.

      • Trending
      • Comments
      • Latest
      featured image

      List of leading partners of Ripple, and How they use XRP?

      February 2, 2021
      Top 5 upcoming Token Airdrops (Step-by-Step Guides)

      Top 5 upcoming Token Airdrops (Step-by-Step Guides)

      November 22, 2022
      Lens Protocol: Everything You need to Know

      Lens Protocol: Everything You need to Know

      November 18, 2022
      Modular Blockchains: The Next Big Thing in Web3

      Modular Blockchains: The Next Big Thing in Web3

      December 12, 2022
      featured image

      List of ChainLink Partnerships which skyrocketed the growth of LINK cryptocurrency

      February 2, 2021
      WTF is an xNFT? And Why Should You Care

      WTF is an xNFT? And Why Should You Care

      July 9, 2022
      bittube

      BitTube : Better than Youtube

      November 4, 2018
      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      January 17, 2023
      RINO Enterprise Wallet launches free Community Edition

      RINO Enterprise Wallet launches free Community Edition

      January 14, 2023
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Modular Blockchains: The Next Big Thing in Web3

      Modular Blockchains: The Next Big Thing in Web3

      December 12, 2022
      A Dummy’s Guide to Ethereum Rollups

      A Dummy’s Guide to Ethereum Rollups

      November 30, 2022
      Tezos Blockchain is Always Under the Radar but Continues to Excel

      Tezos Blockchain is Always Under the Radar but Continues to Excel

      November 22, 2022
      Lens Protocol: Everything You need to Know

      Lens Protocol: Everything You need to Know

      November 18, 2022
      • Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        29613 shares
        Share 11834 Tweet 7397
      • A Mysterious Bitcoin Whale who sold 3000 Bitcoins at 58K$, Bought back 3521 Bitcoins in the last three days

        9924 shares
        Share 3969 Tweet 2481
      • Top 10 Low market cap altcoins to invest in 2021

        7256 shares
        Share 2901 Tweet 1813
      • Top 10 NFT Crypto Projects You Should Know

        7254 shares
        Share 2618 Tweet 1637
      • List of leading partners of Ripple, and How they use XRP?

        5974 shares
        Share 2389 Tweet 1493
      ItsBlockchain

      We are India’s first and oldest Blockchain & Cryptocurrency publication platform started in 2016. We are a one-stop destination for technical analysis, cryptocurrency recommendations, and Blockchain technology resources.

      Buying Guides

      • Buy Bitcoins in India
      • Buy Bitcoins in China
      • Buy bitcoins in Russia
      • Buy Bitcoins in Japan
      • Buy Bitcoins in Turkey

      Important Links

      • Home
      • About US
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      Follow Us

      Contact us

      support@itsblockchain.com

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      No Result
      View All Result
      • Bitcoin
      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.