Standing between professional esports teams and amateur Discord gaming groups in traditional gaming, crypto gaming guilds appear as a novel and exciting concept. This groundbreaking idea brings together players, enthusiasts, and game developers in a decentralized autonomous organization (DAO), creating a vibrant, community-driven ecosystem.

Designed to break down barriers and promote a symbiotic environment, crypto gaming guilds offer a fresh take on traditional gaming communities. They integrate collective ownership, innovative financial mechanisms, and a shared passion for gaming.

What is a Crypto Gaming Guild?

A crypto gaming guild is a decentralized entity that unites gamers, enthusiasts, and developers within a collaborative community. These guilds thrive in the realm of blockchain-powered games, where gaming mechanics are intertwined with financial elements, known as GameFi.

The play-to-earn gaming model has garnered immense popularity, yet it often presents significant entry barriers for newcomers who need in-game assets to participate. Crypto gaming guilds address this issue by forming a mutually beneficial relationship: new players gain entry into the game’s ecosystem, while the guild expands its presence in the GameFi arena.

Inside Crypto Gaming Guilds – How Do They Work?

Crypto gaming guilds function as decentralized organizations, bringing together diverse stakeholders under a community umbrella. Typically organized as DAOs, these guilds rely on collective decision-making driven by member input.

Funding for these guilds comes from member contributions and revenues generated through in-game activities and other ventures. New players can access valuable non-fungible token (NFT) assets—such as characters or items—by renting from other members or borrowing from the guild, enabling them to start playing and earning rewards.

While similar to traditional gaming guilds or clans, crypto gaming guilds leverage the open economies of blockchain games to foster a stronger sense of collective ownership. In traditional games, asset ownership is controlled by the game developer, whereas, in crypto games, ownership is a fundamental right of the players.

Crypto Gaming Guilds & Scholarship Programs 

One unique aspect of crypto gaming guilds is their scholarship programs, designed to help new players enter the blockchain gaming ecosystem. Originating from early play-to-earn games like Axie Infinity, these programs provide costly NFT assets to new players. In return, players share a portion of their earnings with the guild, creating a win-win situation that lowers financial barriers for newcomers and enhances the guild’s influence in GameFi.

Here’s how it works:

• Owners and Managers: Guild members who own NFT (non-fungible token) assets, called “managers,” can lend their NFTs to other members of the guild.
• Scholars: These members, referred to as “scholars,” use borrowed digital assets to participate in crypto games, allowing them to play and earn.
• Profit Sharing: After gaming, the profits are divided among the guild members. Typically, the distribution might be 10% to the guild as rent, 20% to the managers, and 70% to the scholars, although the exact split can vary between guilds.

This innovative system goes beyond gaming, having a significant social impact globally by providing opportunities for people to engage in new gameplay and earn money.

A notable example of the scholarship program’s impact is the Yield Guild Games (YGG) model which it pioneered in 2020. Although this crypto gaming guild, a Swiss Association with global reach, no longer offers scholarships as they are now largely redundant due to the free-to-play gaming models. While the scholarship program supported hundreds of thousands of players, enabling them to generate additional income through gaming, YGG is now focused on supporting its community to uncover reward-earning opportunities across the open metaverse through its questing initiatives such as the Guild Advancement Program (GAP) and Superquests.

Alongside the questing initiatives, YGG is currently transitioning to a guild protocol with the vision to enable and scale guilds globally.

What’s the Role of Guilds in Web3 Gaming?

Beyond scholarships, crypto gaming guilds offer numerous benefits, such as organizing and strengthening gaming communities. They provide platforms for collaboration, strategy sharing, and collective play, fostering tight-knit communities within web3 gaming and supporting the economic sustainability of blockchain games. Influential guilds can even impact game development by providing valuable feedback from players.

Moreover, guilds act as quality control filters for GameFi projects, protecting members from fraudulent ventures. Through thorough due diligence and the promotion of legitimate games, guilds help drive the growth and adoption of blockchain gaming.

These guilds also serve as educational hubs, helping new players understand web3 gaming concepts like setting up wallets, managing assets, and conducting fund transfers. 

As a result, the power of gaming guilds has a strong impact on gaming NFT sales. Creating huge communities, the organization of buying and selling NFTs of certain gaming projects usually has a strong influence on the success curve of Web3 game developers. Are you in as a creator? Make sure not to piss off gaming guilds. 

Quality Research and Legitimacy Checking

The Axie Infinity boom sparked a GameFi frenzy, with everyone racing to create the next big play-to-earn hit.

Unfortunately, this excitement attracted scammers to launch low-quality games designed to steal from players (“rug pulls”).

Top gaming guilds are the gatekeepers, protecting members from these scams. They achieve this through a multi-step process:

• Deep Dives: Guilds meticulously research projects, dissecting their economic models to identify real potential from fakes.
• Playing the Game: They don’t just analyze, they play! Guilds test the games themselves to understand the gameplay and sniff out any hidden issues.
• Scholarship Security: Only after this vetting process do guilds award scholarships, ensuring members play legitimate and enjoyable games.

This rigorous approach shows that top guilds prioritize member safety, fostering a healthy and thriving GameFi ecosystem.

Beyond Protection: How Guilds Fuel GameFi

Although Gaming Guilds might serve as hangmen of low-quality projects and scams, their role goes beyond just that. Top gaming guilds don’t just shield members; they actively support the GameFi ecosystem. Here’s how:

• Game Scouting & Investment: Guilds have an eye for promising games. They invest in them, providing resources and fostering their growth.
• Investment Made Easy: Want in on GameFi but lack the time for research? Guilds offer an option. You can invest directly, letting the guild manage game investments and scholarship distribution. This simplifies things, allowing you to diversify your portfolio without the hassle.
• Ecosystem Boost: By connecting games with capital, guilds fuel innovation and contribute to a healthier GameFi market overall.

How Do Crypto Gaming Guilds Share Profits? 

Profit-sharing systems are a common feature in crypto gaming guilds, incentivizing member participation based on revenue from in-game activities and other ventures. Earnings are typically distributed proportionally among members based on their contributions, such as tokens purchased, NFT assets provided, time spent playing, or specific in-game achievements. Some guilds employ tiered systems, rewarding more active or higher-contributing members, akin to early-stage startups.

The Role of Gaming Guilds in Developing Countries 

While gaming guilds have gained popularity worldwide, their impact has been especially significant in developing countries, notably in Southeast Asia, such as the Philippines. During the crypto boom of 2021, many individuals in the Philippines were able to leave their full-time jobs to play games like Axie Infinity, earning up to $300 or more per week. This was a substantial income boost in a country where the median salary is below $13,000 per year. Most of these players utilized gaming guild scholarships to acquire their first Axie NFTs, which were essential for gameplay and often cost over $1,000 at the market’s peak.

However, the journey for many of these players has led to significant financial challenges. While scholarships helped some get started, others invested thousands of dollars in NFTs, hoping to increase their income. Unfortunately, the value of these NFTs has plummeted. Additionally, as many players left their jobs to play Axie Infinity full-time, they found themselves without a stable income as the $AXS token’s value dropped sharply after the 2021 crypto bull market. Some even took out loans to purchase NFTs, worsening their financial situation.

Shortcomings of Professional Crypto Gaming

In the case of Axie Infinity, the repetitive nature of the game also led to stress and burnout for many players. Similar scenarios have played out in nearby countries like Indonesia and Cambodia, where players and guild members faced comparable financial difficulties.

Thus, while gaming guilds have offered some individuals in developing countries a full-time income, investing heavily in these guilds can be a risky, double-edged sword. Players who commit to full-time play risk significant financial loss, especially if they rely on a single game as their sole source of income.

In case you want to participate in a gaming guild, balance the risks and start slowly, avoiding a full-time commitment right from the start. 

The Most Notable Crypto Gaming Guilds in 2024

There are plenty of crypto gaming guilds. After the GameFi bull-run frenzy in 2021, many such organizations came to life, varying from little Discord hubs to gaming powerhouses backed by hoards of players and immense investments by leading VCs. Here you can see a comprehensive list of crypto gaming guilds by market cap.

Yield Guild Games

Yield Guild Games (YGG) is a leading blockchain gaming guild that specializes in the play-to-earn (P2E) gaming model, offering its members various revenue-generating opportunities. By acquiring and managing virtual assets such as in-game products and non-fungible tokens (NFTs), YGG enables players to earn while they play. This innovative approach has attracted substantial backing from prominent investors, including Delphi Digital, Bitkraft, Andreessen Horowitz (a16z), and DWF Labs, among others.

With a market capitalization of approximately $56,736,703 USD, Yield Guild Games has firmly established itself in the blockchain gaming industry. The guild boasts a robust community of 3 million members, reflecting its widespread appeal and the growing interest in P2E gaming. 

Merit Circle 

Merit Circle is a prominent gaming DAO, designed by a global community to forge a brighter future for the gaming industry. With a strong foundation in the web3 space and leveraging advanced technologies, Merit Circle aims to explore and harness the potential of blockchain technology to transform the gaming world.

Boasting a market capitalization of $129,327,501, Merit Circle has attracted substantial investments from influential entities such as Defiance Capital, Maven 11, Yield Guild Games, Dialectic Capital, Spartan, and others, accumulating a total funding of $4.5 million. The DAO’s community has grown to an impressive 107,900 members, underscoring its significant impact and reach. 

Good Games Guild

Good Games Guild is one of the world’s top three gaming guilds, serving millions of users. Based in Indonesia, this gaming hub leverages the Pay to Earn scheme, focusing on blockchain games to create revenue opportunities for its community. With a market capitalization of $53,220.82, Good Games Guild has attracted support from a range of investors, including Alves Venture, ChromaWay, AU21 Capital, Basics Capital, and others.

The guild has cultivated a robust community of 44,000 members, underscoring its significant impact in the gaming world. By capitalizing on the burgeoning P2E gaming market and securing strong investor backing, Good Games Guild continues to be a major player in the global gaming ecosystem.

UniX Gaming 

UniX Gaming is a blockchain-based gaming guild that enables players to earn cryptocurrencies and NFTs by enjoying a variety of games. Positioned as one of the leading NFT gaming guilds, UniX Gaming has established ecosystem partnerships with prominent platforms such as Sandbox, Axie Infinity, and Decentraland.

The platform has garnered a massive following of 23 million fans for its Play-And-Earn model on streaming platforms. With a market capitalization of approximately $98,401.82, UniX Gaming has received backing from over 13 investors in its latest funding round. Notable investors include TuitionKit, Guide Education, PAID Network, Akatsuki, Akash Network, LD Capital, The Club Mumbai, Unvest, Argo Blockchain, Master, AU21 Capital, Pluto, and Synergia Capital Partners. The community boasts an impressive 188,000 members, reflecting the platform’s widespread appeal and success in the blockchain gaming space.

Avocado DAO

Avocado DAO is a decentralized autonomous organization focused on the gaming sector, aiming to empower gamers worldwide. The platform primarily invests in NFT assets within games and emerging metaverses, along with NFT platforms and play-to-earn (P2E) games that show strong economic potential and traction.

With a current market capitalization of approximately $437,283.13 USD, Avocado DAO has successfully secured significant investments from notable entities such as Algorand, GoldenTree Asset Management, Animoca Brands, and Andromeda Capital, among others. The organization boasts a thriving community of 87,000 members, highlighting its growing influence and commitment to advancing the gaming and NFT ecosystems.

Play It Forward DAO

Play It Forward DAO is a GameFi ecosystem that has elevated the play-to-earn (P2E) gaming experience to new heights. As a crypto gaming guild, it aims to provide gamers with financial facilities that ensure an exceptional gaming experience. Combining the strengths of the P2E board and the PIF guild, the platform serves a community of over 40,000 members.

With an estimated market capitalization of $113,607 and total funding of $6 million from investors such as AlphaLab Capital, Dweb3 Capital, and Kem Pham, Play It Forward DAO has established a strong financial foundation. The community, currently comprising 25.7k members, reflects the platform’s growing influence in the GameFi sector. 

GameFi’s Next Chapter: The Rise of the Guilds?

As the gaming industry—already the world’s largest entertainment sector—continues to grow, blockchain gaming is set to see increased participation. In this dynamic landscape, crypto gaming guilds are essential in promoting GameFi adoption. They highlight the best games, foster vibrant communities, and boost overall participation, shaping the future of gaming as we know it.