The SubDAO model pioneered by YGG is regarded as a 'franchise' revolution for Web3 guilds, breaking down the large YGG main DAO into independent entities focused on specific games or regions, with the Splinterlands SubDAO (token YGGSPL) being the most typical. In this structure, the YGG main treasury retains ownership of SubDAO assets but delegates management rights and a portion of profit rights, continuing the classic 70/20/10 profit-sharing model (70% to players, 20% to SubDAO managers, and 10% back to the main guild). Currently, YGG has invested in over 55 games, and this model allows community members holding YGGSPL tokens to directly participate in the treasury governance of the game, achieving a transformation from 'big pot meals' to 'precise investment'.
In a single main DAO model, as the asset scale grows exponentially, the core team faces significant management pain points. Tens of thousands of NFTs are scattered across different games, leading to a high asset idleness rate, and the recruitment efficiency of scholars for specific games (such as the card strategy of Splinterlands) is low. Data points show that general managers find it difficult to master the metaverse economic models of each game, resulting in some high-value NFTs lying in wallets and depreciating due to a lack of liquidity strategies, and the centralized governance structure cannot quickly respond to the frequent updates and tactical adjustments of a single game community, severely lagging governance efficiency.
The SubDAO model solves this process challenge by introducing the YGGSPL token. Users gain governance rights over the Splinterlands card assets in the SubDAO treasury by holding and staking YGGSPL. In the process, community proposals decide whether to purchase new card packs or sell old assets, and smart contracts automatically execute leasing agreements, lending card decks to selected professional scholars. The combat earnings generated by scholars are distributed proportionately, while the portion earned by the SubDAO is reinvested or used for buybacks and destruction through the Vault smart contract, forming a closed loop of 'governance-optimization-yield-appreciation.' The integration of SDK v2.1 further automates this process on-chain.
The market validation results of this model are remarkable. The launch of the Splinterlands SubDAO quickly activated dormant assets, significantly improving the retention rate of scholars in this game sector, far exceeding the industry average. Through the meticulous operation of community experts, the asset win rates held by the SubDAO have significantly increased, contributing highly engaged users to the 23.5 million active address ecosystem, and bringing additional income to the treasury through validator nodes and in-game ranking rewards. The 8.1% annualized yield for validators proves that specialized division of labor can still generate positive cash flow through meticulous operations during a bear market.
YGG's SubDAO strategy is a key step towards its ultimate vision of 'serving 100 million players.' By dispersing operational pressure to various SubDAOs, YGG has essentially built a decentralized issuance platform similar to Binance's ecosystem, where each SubDAO serves as an independent growth engine. Coupled with the support of a 7.5 million ecosystem fund and the popularization of CreatorPad tools, YGG is evolving from a pure gold farming guild into an incubator and asset management giant for Web3 games, and this layered governance structure ensures that the guild remains agile during the expansion process, laying the institutional foundation for the future explosion of the metaverse economy.
I am a sword seeker on a boat, an analyst who focuses only on essence and ignores noise.@Yield Guild Games #YGGPlay $YGG
