In the summer of 2021, a magical story circulated in internet cafes in rural Philippines: playing a game called Axie Infinity could earn a monthly income exceeding that of local university graduates. In no time, young farmers put down their hoes, and housewives stayed up late 'gold farming' after putting their children to sleep, as if the entire country had discovered the gold mine of the digital age.
But just a year later, the gold mine turned into a mining disaster.
The game token SLP plummeted from $0.35 to $0.001, and countless 'gold farmers' returned to square one overnight. Criticism erupted: Look, this is not a game at all, it's a Ponzi scheme!
However, among the ruins, a strange sight emerged: when most players angrily left, a guild called Yield Guild Games not only didn’t retreat but increased its investment. What were they doing? Were they burning money for fun?
Looking back today, you will realize it wasn’t madness, but a meticulously planned “economic redemption operation.”
What was YGG doing the night of the collapse?
On the night in March 2022 when SLP fell below the lifeline, YGG's Philippine head Marco spoke a line widely quoted in the community voice channel:
“Brothers, the gold mine hasn’t disappeared, it’s just the mining method needs to change. We used to be gold diggers; now we need to learn to be mine owners.”
At that time, most people didn’t understand. But in the following three months, YGG did three seemingly contradictory things:
First, double the issuance of “scholarships.” While other guilds stopped recruiting new players, YGG expanded its Axie scholarship program.
Second, mandatory “three days of training.” All new scholars must complete three days of gaming economy courses before receiving their Axie team.
Third, introducing a “token salary package.” Scholar income is no longer entirely SLP, but a combination of “30% SLP + 40% AXS + 30% stablecoins.”
These three moves were heavily criticized at the time: “The guild wants to run away, replacing cash with garbage coins!” “Training is just wasting time!”
But time has proven the wisdom within.
Dissecting an Axie: From “egg-laying machine” to “battle partner”
To understand what YGG is doing, you first need to understand how the Axie economy collapsed.
Axie in 2021 had a fatal design flaw: Breeding was the only necessity.
Why do players need SLP? Mainly for breeding new Axie.
Why breed new Axie? To make money or earn more SLP.
This created a perfect death spiral: SLP price drops → breeding costs decrease → more Axie are bred → more SLP is produced → SLP price drops further.
“Back then, we called Axie ‘the chicken that lays golden eggs,’ but no one cared about whether the chicken itself was fun to play,” a senior manager at YGG recalled, “As a result, the chicken farm kept growing, but the eggs became less and less valuable.”
YGG's solution is straightforward: make Axie no longer just a “production tool.”
They conducted an experiment: selecting 200 players from 1000 scholars who genuinely enjoyed battles and assigning them special “competitive Axie.” These Axie have low breeding value but strong combat abilities. The requirement was simple: don’t think about gold mining, focus on ranking up.
What was the result?
· These 200 people saw an average SLP output decrease of 40%
· Yet they occupy 137 positions among the top 500 in arena rankings
· More critically, 83% of them reported that “they now find games enjoyable”
“We found the key issue,” the head of the experiment analyzed, “When 99% of players play just to make money, the game economy will inevitably collapse. There must be enough people playing ‘for fun’ for the economy to stabilize.”
Scholarship 2.0: From “paying salaries” to “building schools”
YGG's most controversial yet successful innovation is the complete overhaul of the scholarship program.
Old Model (2021):
“Here are three Axie for you to mine gold; we take a 73% cut, you keep 7, we take 3. Don’t know how to play? Look it up online.”
New Model (2023):
“Welcome to the YGG Scholar Program. Please complete the following first:
1. Economic Fundamentals Course (2 hours)
2. Introduction to Combat Course (3 hours)
3. Risk Management Course (1 hour)
After testing, you can choose your development path:
A. Competitive Route (Rank Up, High Profit Share)
B. Breeding Route (Focus on breeding high-quality Axie)
C. Content Route (Live Streaming/Tutorial Creation)
Your performance will be recorded in the ‘guild credibility system’, affecting future profit sharing ratios and promotion opportunities.”
This is hardly a gaming guild; it’s clearly a vocational training school.
But the data proves its success:
· New model scholar retention rate: 71% active after 6 months
· Old model scholar retention rate: Only 23% remain after 6 months
· New model scholars have an average monthly income 18% higher than the old model (even with lower SLP prices)
“The secret is,” YGG’s training head revealed, “we no longer treat scholars as ‘workers,’ but as ‘interns.’ Their goal isn’t to make an extra $20 next month, but to become guild managers, strategists, or even game designers in six months.”
That mysterious “guild credibility system”
This is YGG's true killer feature, an innovation that most people have overlooked.
Traditional gaming guilds have a problem: Good scholars leave, and the initial training investment gets wasted. YGG's solution is to put “credibility” on the blockchain.
In simple terms, each scholar’s performance in YGG—battle win rate, asset appreciation, community contribution—will translate into a credit score recorded on the blockchain. This score has three wonderful uses:
First, dynamic profit sharing
Scholars with high credit scores can have their profit sharing ratio increased from the base 50% to as high as 70%. This motivates excellent players to stay long-term with YGG.
Second, cross-game compatibility
The credit score you accumulated in the Axie project can serve as initial credit when joining YGG’s other games (such as The Sandbox, Splinterlands). This creates strong retention stickiness.
Third, forming a labor market
Other guilds can “view” a scholar’s credit score (with their authorization), equivalent to a LinkedIn profile in the gaming world. Top scholars may even have guilds trying to “poach” them, and YGG can collect a referral fee from the transfers.
“We are creating a professional pathway in the gaming industry,” said YGG’s product head, “just like football academies, we train players who may serve YGG for life or transfer to other guilds—but in any case, the entire ecosystem is healthier.”
The new meaning of “SLP”: from “smooth liquidity” to “sustainable fun”
After two years of adjustments, today’s Axie economy is unrecognizable.
2021's SLP:
· Main output: Winning battles
· Main consumption: Breeding Axie
· Inflation rate: Average 8% per month
2024's SLP:
· Output scenarios: Winning battles (decrease), completing storyline tasks, participating in tournaments, creating content
· Consumption scenarios: Breeding Axie (significantly increasing costs), upgrading Axie, purchasing skins, participating in governance votes
· Current status: Deflation for six consecutive months
“The most interesting change is in consumption scenarios,” YGG’s economic analyst pointed out, “Previously, you spent SLP just to earn more SLP; now you spend SLP to make the game more enjoyable—upgrading your Axie, buying rare skins, voting to support features you like in the game.”
This may sound subtle, but it is fundamentally different: When players pay for “fun,” the demand is sustainable; when players pay to “break even,” the demand collapses with price fluctuations.
YGG's balance sheet: More than just a numbers game
Outsiders may see YGG's operations in Axie as a “social experiment.” But looking at their financial data reveals it to be a shrewd business strategy.
Asset side:
· The number of Axie held by YGG decreased from 150,000 in 2021 to 40,000 now
· But the average value of each Axie increased fivefold (from “mass-produced gold mining tool” to “premium battle asset”)
· More importantly, they have nurtured over 200 “captains” who can manage other scholars. This human capital is not reflected on the balance sheet but is the most valuable asset
Liabilities and Equity:
· By collateralizing part of the Axie assets to DeFi platforms, YGG secured stable cash flow
· These cash flows are used to invest in new projects within the Axie ecosystem (such as arena expansion, content creation funds)
· Forming a virtuous cycle: Investment enhances Axie ecological value → Axie assets appreciate → Collateral generates more cash → More investment occurs
“We are no longer just ‘holders’ of Axie, but ‘builders’,” YGG's CFO explained, “Traditional investment is about buying low and selling high; our strategy is ‘buy and enhance its value.’”
Future: When gaming guilds become “digital nations”
Axie's recent updates reveal greater ambition: introducing a “land system” and more complex governance structure. Does this sound familiar? Yes, the script of The Sandbox.
And YGG is ready. They are testing three mature systems in Axie—Scholarship 2.0, Credibility System, Asset Redistribution—being transplanted into other games.
More noteworthy is that experiment with “cross-game credit scores.” Imagine: you are a top player in Axie with a credit score of 950; when you join The Sandbox, this score allows you to:
1. Obtain better initial LAND leasing conditions
2. Gain extra weight in DAO voting
3. Priority participation in new game beta testing
This is essentially building a “digital citizenship” that spans multiple games. YGG is no longer just a guild, but resembles a “digital nation” providing passports, credit systems, and career development pathways.
Looking back at the internet cafes in the Philippines
A few days ago, I contacted that Filipino guy from 2021 who supported his family by playing Axie in an internet café. His current role is: YGG's community manager in Cebu, managing 50 scholars while also studying game design courses.
“Many people ask me if I regret playing Axie,” he laughed on the video call, “If it was just playing for a few months for gold, I might regret it. But YGG gave me a path—from gold miner to manager, and then to builder. Now, when I look at any game, I no longer think ‘how much can it make,’ but rather ‘what value can I create for it?’”
Perhaps YGG's greatest achievement in this economic redemption is not only saving a game’s economic model but redefining the meaning of “gaming work.”
From short-term laborers in the “digital rice fields” to long-term citizens in the “gaming nation”—this path has been traveled by countless players with YGG for three years. And ahead, more gaming worlds await reimagination.
Next time you hear about a game’s economy “collapsing,” maybe wait and see. Perhaps among the ruins, there are people rebuilding a better world in ways you never imagined. And leading the charge is likely that familiar symbol: YGG.@Yield Guild Games #YGGPlay $YGG
