Crypto gaming guilds operate under the DAO, which brings investors, players, and creators together to create the best possible experience for P2E games.
Related: Why current GameFi play-to-earn model is failing?
Crypto Gaming Guilds and DAO
Aspiring play-to-earn gamers and NFT investors recognized the potential for mutual gain, crypto gaming guilds grew in popularity. A play-to-earn gaming guild is a collection of gamers and investors, also known as scholars and managers, who cooperate to split game revenues.
Video game enthusiasts can now earn money doing what they enjoy by playing online games. Blockchain technology powers play-to-earn (P2E) games, letting users make money by participating in the game.
However, a lot of these games demand the ownership of specific in-game items, which can occasionally be pricey. Many players, especially those in underdeveloped nations, could not have been able to afford to start playing the games with such a large initial investment. How can this problem be resolved? Crypto guilds are useful in this situation.
What is a Crypto Gaming Guild?
A gaming guild is a group of players who cooperate within and outside a specific game. Play-to-earn (P2E) games have been included in the concept of gaming guilds presently.
A crypto gaming guild is a group that unites managers, investors, and players. By purchasing in-game assets in the form of NFTs and lending them to thousands of players so they can play and earn yields, they serve as facilitating intermediates.
These gaming guilds exist to promote and facilitate participant play-to-earn gameplay play without the need for a large upfront commitment. In addition to other advantages, crypto gaming guilds give members the chance to take part in P2E games that they could not otherwise afford.
Potential financial barriers that players may face because of playing P2E games are greatly diminished. Additionally, it ensures that everyone has an equal chance of participating in the metaverse economy. In the end, it results in a situation where both the gaming guilds and the players win.
What is DAO?
A decentralized autonomous organization is referred to as DAO. Software operating on a decentralized network is essentially what a DAO is. It contains guidelines for decision-making and governance. It is thus a type of organization where the rules are controlled by smart contracts. A DAO is intended to create an organizational structure that can function without traditional hierarchical administration. Smart contracts can be used to implement business logic rules and contractual responsibilities.
As a result, a DAO is a collection of individuals working together toward a common goal or project who, using tokens and the blockchain, enable their members to cast votes. In this situation, their decisions determine whether a certain solution or proposal is approved, much as if they were shareholders in a firm.
What is a Guild?
A guild is a group of artisans or businesspeople who get together for mutual protection, support, and the advancement of their respective fields of expertise. Between the 11th and 16th centuries, guilds grew in Europe and played a significant role in the continent’s economy and social structure.
What are Crypto Gaming Guilds and DAO?
In a world where blockchain technology is transforming numerous industries, cryptocurrency gaming is currently a hot topic.
Blockchain gaming has recently evolved from relatively obscure games played by a small percentage of gamers to a thriving ecosystem. The ecosystem surrounding these crypto games is altering how players can monetize their free time.
Axie Infinity, The Sandbox, Decentraland, and Wilder Worlds are just a few examples of popular blockchain games that have assets that can be acquired, managed, used, and made money from by individuals working together as Gaming Guilds.
By giving new players the resources, they need to begin playing the games, crypto gaming guilds also serve as platforms to welcome and support them. Crypto Guilds are quickly overtaking other methods of accessing the play-to-earn experience in terms of popularity.
How do Crypto Gaming Guilds work?
For cryptocurrency gaming guilds, the goal goes beyond just expanding the GameFi market. They want to advance the bitcoin industry as a whole and advance broad adoption. In the world of cryptocurrency, they play five key roles:
Community Connection with GameFi
Every gaming guild’s community is at its heart. Gaming guilds have a lot of potential for social influence, and ecosystem development in general depends on community involvement.
They function as a DAO (decentralized autonomous organization), where money is provided by the group of people who own DAO tokens, in this case, the DAO token that the guild produced. Guild members would then collectively invest in the NFT assets and in-game tokens required to participate.
After then, they would combine their resources for the use, amusement, and profit-sharing of other guild members. This is referred to as the “scholarship program,” which is what the following section will discuss.
However, the guild’s main duty and responsibility is to lead the community in the web3 universe.
Scholarship Programs for Players
The play-to-earn entry barrier was the catalyst for the development of the DAO model of guilds. The phrase “scholarship program” refers to it.
Owners of NFT assets also referred to as managers within the guild may lend their NFTs to other guild members, also referred to as “scholars.” Then, academics can use these digital assets to participate in and profit from the crypto game.
Following that, the guild halves the profit. Depending on the guild, the revenue is distributed differently. The usual rent split is 10% for the guild, 20% for the managers, and 70% for the academics. Other guilds divided the earnings equally.
This technology has a significant societal influence on the entire planet since it gives almost anyone access to new gaming experiences and income opportunities.
Quality Control for GameFi Projects
Following the Axie Infinity boom in 2021, the GameFi industry saw growth. As a result, numerous projects aim to market the following cutting-edge gaming product.
However, it also implies that some projects are of low quality and are frauds aiming to profit from the play-to-earn craze. The guild must shield its members from fraud or other dirty tricks.
Before giving its members scholarships, the best gaming guilds thoroughly investigate, examine, and playtest the projects’ economic systems as well as the games themselves.
Bridge Between Traditional Gamers and Crypto
Games built on the blockchain are distinct from conventional video games. There are numerous processes that non-crypto users may find intimidating. The GameFi industry needs to be more accessible, thus newbies must have access to more educational materials. As a result, guilds assist non-crypto gamers to access the market indirectly, for instance:
- How to set up a cryptocurrency wallet to access the game and market, like Metamask.
- How to deposit and withdraw money from trading DApps and exchanges.
- How to conduct transactions and secure accounts.
- Learn more about the game project, including the mechanics of the game’s gameplay and its reward scheme.
A critical performance metric of an ecosystem’s health is the retention rate of cryptocurrency games. When compared to other guilds, Unix reported a higher-than-average matchmaking rating (MMR) per scholar (in-game skill level), which led to higher profits.
Connect Investors with the GameFi Market
Crypto gaming guilds serve the GameFi industry as venture capital as well. They would research brand-new crypto games and invest if they found any with promise.
Investors can also invest in guilds and give out scholarships to their members if they wish to invest in games but don’t have the time to play themselves. In this way, guilds can assist investors in making indirect investments through them in video games without having to deal with the trouble of conducting research, handling accounts, or running the game.
How to Earn with Crypto Guilds?
Blockchain guilds solve the issue of democratizing entry to cryptocurrency games by enabling system participation for players on a tight budget. As a result, thousands of players who access these games through one or more guilds now rely primarily on P2E games for their money.
By lending their assets to players via their guild, guilds also allow managers to optimize the revenue-generating potential of their holdings. Depending on the guild, the actual distribution of managers and players may differ.
Traditional gaming guilds are dedicated to a single game. On the other hand, members of Crypto Guilds typically switch to other, more lucrative games when a game loses its popularity.
As hundreds of new cryptocurrency games hit the market, institutional investors and crypto venture capitalists have already made sizeable investments in guilds.
Conclusion
Over the past ten years, the gaming industry has grown significantly. Along with the products’ excellent quality, the ability to make money while playing is a crucial component in turning a hobby into a company.
Crypto games, which base their commercial operations on the underlying blockchain technology, are driving this trend enriched with smart contracts, tokens, and DAOs—secular businesses created to monetize gaming activity.
The introduction of guilds via DAOs has completely changed the gaming landscape.
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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
