Gaming guilds are communities of gamers that aim to create economies in the virtual world by sponsoring millions of players, investing in games to monetize their in-game content, and building tools to enhance future game development.
Gaming Guilds provide players with the money and tools needed to experience the ever-increasing amount of Play to Earn (P2E) games at the expense of a portion of their earnings.
Here’s an example: Because buying an Axie on the popular blockchain game Axie Infinity can be quite expensive, some guild users are willing to give up some of their earnings to rent in-game assets from the guild.
If 2021 proves to be a year for crypto games and their tokens, will 2022 turn out to be the year for Gaming Guilds that support compelling gaming conditions like Axie Infinity or The Sandbox?
It’s too early to tell but crypto investors who have profited from the bull market are accumulating money for this boom.
Why Gaming Guilds Will Explode
Unlike traditional gaming guilds, which are organized groups of gamers who regularly play together in a game, Crypto Gaming Guilds are game-independent. Instead, they aim to be a platform that supports new gamers.
It also explains why investors are betting big on Gaming Guilds: There are hundreds of NFT games hoping to be the next Axie Infinity.
Data from DappRadar shows about 106,000 daily active users on Axie Infinity or various wallet addresses interacting with the game, as of press time, down from the November peak of around 135,800.
Darryl Wang, the senior investment analyst at crypto investment firm DeFinance Capital, wrote on Twitter: “If the game is a high risk/high return, the associations will be the initiators. The blue-chip industry has stood the test of time.
“The Gaming Guilds will become the best opportunity for players to play the best game.”
According to Akaradet Diawpanich, co-founder of GuildFi, NFT gaming guilds have the potential to create a “positive feedback loop” in which they bring players into the game, buying non-fungible tokens (NFT) in-game and lend it to players, invest in different games and help them target potential users.
In an interview with CoinDesk, Diawpanich said GuildFi started expanding after seeing a surge in demand for rental properties during the booming time amid the COVID-19 pandemic. GuildFi is also currently providing gadgets for gamers in various games. For example, Axie players can track their daily SLP rewards on GuildFi easily.
Ultimately, GuildFi, according to Diawpanich, is trying to become Steam, a video game distribution service, for crypto games.
Why do Gaming Guilds need tokens?
It’s no surprise that YGG, GuildFi, and Merit Circle — some of the more successful crypto organizations this year — all have their own tokens. But even the most prized of them, YGG, which has a market cap of $461 million, according to CoinGecko, is still far from the value of crypto gaming darlings such as AXS (6.6 billion dollars) or MANA ($4.4 billion).
In an analysis of crypto gaming guilds, Wayne Zhao, a partner at Beijing-based blockchain data firm TokenInsight, wrote that some traditional gaming guilds have ended badly. after guild members discovered community leaders were being paid by game companies to promote games.
With the token’s launch, however, crypto associations have the potential to tackle the “over-centralization” problem of traditional gaming associations, according to analysts.
“Traditional gaming associations act as social facilitators, but nothing more,” Wang of DeFiance Capital told CoinDesk. “Gaming Guilds take on a much more important economic role due to the nature of on-chain digital assets that players use and care about.”
Zhao said in an interview with CoinDesk, a decentralized autonomous organization (DAO) can bring together a random group of people with different motivations to build and grow together because of incentives to share.
“At its core, tokens are one of the incentives for members to participate in group decision-making,” Zhao said of clan governance. Each individual can benefit from the total profit earned
Gaming Guilds is slowly budding and is expected to become a trend in the future. As the epidemic continues, the economy is still struggling and the Play to earn model is becoming more and more popular in the daily lives of people around the world. Gaming Guilds will be the key to opening the limited door to make GameFi even more explosive