The blockchain-based gaming industry will need to look to localized strategies to attract Web3 gamers, says the decentralized gaming guild Yield Guild Games (YGG).
Speaking to Cointelegraph at the 2022 Tokyo Games Show last week, Andy Chou, YGG’s head of ecosystem development, and Brian Lu, partner of Taiwan-based VC firm Infinity Ventures Crypto (IVC), gave an overview of YGG’s plans for the future, including how it uses its subDAOs.
YGG originally launched in the Philippines in late 2020, but after an early investment from IVC, the duo teamed up to expand YGG around the world through subDAOs, initially starting in Southeast Asia.
According to YGG terminology, SubDAOs act as a “specialized, miniature economy that interacts with a larger, all-encompassing economy” under the umbrella of YGG. They were introduced to the YGG ecosystem last July.
While many associate YGG with its Philippines-based outfit that offers scholarship programs for play-to-earn (P2E) games such as Axie Infinity, the guild has gradually expanded to other countries and regions such as India, Japan, Brazil, and Latin America through the use of subDAOs.
Chou described the idea of a YGG subDAO as “kind of an economy of its own, which has its own treasury and its own token,” adding that each subDAO has a different set-up and business partnerships depending on the country in which it is located.
For example, Chou noted that while the concept of YGG grants — where players are lent NFT funds to people so they can earn from games — has been a major driver of web3 gaming adoption in the Philippines, he doesn’t necessarily think so. sees its relevance in the context of YGG Japan.
Instead, Chou suggested tapping the long list of beloved Japanese “gaming IP” is the best way to attract people to Web3 games in Japan, while Lu confirmed their focus is “helping to market of Japanese games” rather than offering scholarships there, stating:
“Japanese IPs are something that everyone covets. […] You have [companies like] Sega, Bandai Namco, all those gaming companies that want to run and get into Web3.”
Asked about what Chou thinks is currently holding Web3 gaming back from mainstream adoption, he outlined that the onboarding process is still a complicated one for new users, something their YGG Japan subDAO has recently addressed.
On September 16, YGG Japan announced a partnership with IVC and web3 tech company KryptoGO to develop a wallet aimed specifically at blockchain gamers. While details were scarce in the announcement, the trio wants to create a simplified interface for users to access blockchain games and host all their assets in one place.
Chou said other barriers have been a lack of knowledge about what NFTs represent, as many critics still argue that the assets are worthless because they can just right-click and save the accompanying illustrations of the NFTs.
“That whole process of just onboarding, once it gets smoother, will help bring in more people. I even think about education [level], simply explain what it means to actually own a digital item. Instead of thinking ‘oh, I can just copy this and get it.’”
“Having digital ownership of those digital goods. It’s something that hasn’t really been explored yet. But as the world becomes more and more digital, I feel like a lot of things are moving there,” he added.
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YGG was co-founded in 2020 by Beryl Li and Gabby Dizon, and the latter is also a founding member of Oasys, which is expected to launch a gaming-focused blockchain later this year.
By June, YGG’s network around the world had more than 30,000 scientists. For lending their NFTs, YGG offers 70% of the in-game earnings to the players, 20% to stock managers and the remaining 10% goes to the specific subDAO.