In a tin house on the outskirts of Manila, 21-year-old Carlos stares at the flashing cryptocurrency wallet balance on the screen, calculating whether he can gather enough for his sister's tuition this month—he has just completed today's 'game task' in YGG's scholarship system.
In the late night of the Philippines, thousands of young people like Carlos are 'working' in the world of blockchain games, known as 'scholars', participating in the once-popular 'play-to-earn' model.
Today, the bubble of this model is bursting. In the first quarter of 2025, funding for Web3 games plummeted by over 70%, and several major projects announced their closure. The once-bustling daily active wallets in chain games hit a new low for the year in April 2025: only 4,800,000, down 10% from the previous month. This is not a temporary adjustment, but the beginning of a structural collapse.
01 Feast and Endgame
The play-to-earn model has sparked a global gaming revolution. At its peak, it promised a utopia to the world: anyone could earn digital assets through gaming and exchange them for real income.
Especially in developing countries like the Philippines and Venezuela, the income potential of P2E games often exceeds local wage levels.
In the Philippines, during a time when unemployment soared to 40%, YGG's scholarship program indeed became a lifeline for thousands, helping them earn two to three times the local minimum wage through gaming.
However, the flaws of this model quickly become apparent. It is built on the foundation of token inflation: developers mint tokens as rewards for in-game activities, hoping the increased participation can offset selling pressure.
The problem is that when rewards no longer cover the investment, participation will rapidly decline. As players exit, liquidity dries up, token values drop, and developers lose a crucial revenue source, creating a vicious cycle that is hard to reverse.
02 The Evolution of YGG
In this industry winter, Yield Guild Games did not sit idly by but underwent a complete transformation. It evolved from a simple 'buy NFTs and rent them to gold farmers' leasing platform into a complex digital collaboration network.
The core of this transformation is the shift from 'guild-first' to 'ecosystem-first.' YGG is no longer just an intermediary between asset holders and players but is becoming an engaging experience curator, bridging the fun of Web2 with the incentives of Web3.
YGG has built a unique 'main guild + sub-guild' structure: the main DAO is based on Ethereum, responsible for strategic decision-making and fund management; while a series of 'sub-DAOs' act like independent specialized teams focusing on specific games or regions.
This design allows YGG to flexibly respond to the differences in various game economic models and regional player habits. For example, the closed-loop breeding, battling, and market trading of Axie Infinity operates on a different channel than other blockchain games, requiring specialized teams to manage and optimize.
03 Game as Ownership: From Extraction to Ownership
Faced with the structural problems of the P2E model, the industry is beginning to explore new directions. The game-as-ownership model is providing a sustainable path away from speculative rewards.
The core of this model is to decouple gameplay from token issuance, not injecting large amounts of rewards into the economic system, but rather treating digital items as fixed supply assets that players can trade in secondary markets.
YGG's attempts in this regard are reflected in its redesign of the token economy. Today, the YGG token is deeply integrated into missions, player rewards, game onboarding, experience progression, and the staking system of the entire YGG network.
As more games join the ecosystem, YGG's utility and demand continue to rise. The guild is also actively expanding its experience points and soul-binding badge systems, giving players a true sense of identity and growth.
04 On-chain Resume: The Verifiable Value of Digital Labor
One of YGG's most innovative attempts is to turn 'playing' into 'verifiable work.' It is trying to prove one thing: digital labor can also have a history, growth, and collaboration just like traditional work—only this time, the records are on-chain, and the distribution rules are written into code.
Through projects like the guild promotion program, YGG is building an on-chain reputation layer that binds players' missions, contributions, and performance history into a portable and verifiable identity.
This transforms original participation into an asset: a continuous, provable resume that unlocks higher-level bounties, early access to new games, or higher profit-sharing.
YGG's system reflects the transition of Web3 from pure speculation to structured participation. The guild is not only positioned as the largest Web3 gaming guild but also as a protocol layer that allows others to quickly form guilds, reputation systems, and user acquisition funnels.
05 The Micro-Economy of Digital Labor
In YGG's economic system, each participant plays a specific role. Scholars (players) provide time and gaming skills; community managers are responsible for recruitment, training, and emotional support; while the DAO treasury provides capital and infrastructure.
This system aims to solve the traditional paywall problem in Web3 gaming by transforming capital into shared resources rather than personal barriers. Players do not need to spend hundreds of dollars out of pocket to build competitive gear; the costs are socialized by the guild, while the profits are distributed through revenue sharing.
An analysis in 2025 shows that in the Yield Guild City and Pudgy Penguins Ice World lottery events, with an investment of $10,000, the expected return is $9,800, yielding a preliminary return rate of up to 98%.
However, behind this high efficiency is a sophisticated micro-economic design. YGG's treasury operates as a portfolio of NFTs, game tokens, and cooperative ecological strategies, with token holders jointly holding exposure to this asset basket through YGG tokens.
06 The Difficult Balance of Sustainability
YGG's core challenge is how to provide economic opportunities while avoiding the pitfalls of repeating the P2E model. Once, YGG's market value plummeted by 91%, forcing it to reflect deeply.
Now, YGG no longer expands its scholarship by consuming reserves but has tightened its belt, prioritizing stablecoin holdings—which now account for 46% of its assets—and ensuring there are enough funds to operate for 24 months.
The launch of the YGG Redeem platform allows players to convert in-game points directly into YGG tokens, creating a tangible and sustainable use case beyond governance for the tokens.
However, the most fundamental challenge may lie on the cultural level. YGG needs to prove that 'playing games' can become a credible and respected economic activity rather than a time sink that causes guilt.
07 Global Network and Localization Strategy
Starting from a small guild in the Philippines, YGG has grown into a global subDAO network tailored to the unique needs of local communities. YGG SEA serves Southeast Asia, IndiGG focuses on India, while OLA GG caters to Latin America.
The common characteristic of these regions is the limited opportunities in traditional finance, yet internet access and gaming culture are thriving. YGG's subDAOs adapt the core model to local environments, providing language support, regional payment methods, and community activities.
In Thailand, YGG's subDAO successfully replicated the Philippine model, helping unemployed youth earn a living through play-to-earn games. In Brazil, OLA GG collaborates with local gaming influencers to train new players and build a vibrant community.
This localization strategy enables YGG to more precisely meet the needs of players in different regions while also reducing the risk of relying on a single market. Each subDAO has its own multi-signature wallet, operational team, and governance rules, allowing it to flexibly respond to changes in specific scenarios while maintaining overall direction through the main DAO framework.
When Carlos completes today's game mission, his on-chain resume gains another record. In YGG's ecosystem, these records will become his digital credentials for better opportunities in the future.
YGG Play Launchpad is gradually becoming the central hub for new Web3 games, but it is not just about issuing tokens; it focuses on nurturing real players.
Traditional games never expect users to view in-game currencies as financial assets. Once this happens, the gaming experience faces market volatility risks that most players neither understand nor anticipate. YGG's exploration may be finding a middle ground for this industry.
