Written by Bonk
- Yield Guild Games saw a huge drop in SLP revenue during 2021 as the SLP token’s price dropped by 69%.
- The guild holds an optimistic outlook for the future since the demand for scholarships remains strong despite the drop in SLP value.
- YGG is entering partnerships to build a robust infrastructure, especially in the mobile gaming scene
Optimistic on Axie
2022 has been a rough ride. Inflation, monetary policy, supply chains, food shortages, Ukraine, and the list goes on. Crypto made no exception. While we are seeing much fear in the markets, the gaming guild Yield Guild Games (YGG) is maintaining an optimistic outlook on the Play-to-Earn scene.
YGG has been a pioneer in the P2E scene since its inception during the Axie boom, mostly known for providing scholarships for newcomers. Yet, as the Smooth Love Potion (SLP) saw a dramatic downturn, skepticism emerged, questioning the profitability of the game.
SLP earnings in November peaked at 25,855 SLP, followed by 22,664 SLP in December. Yet, the monthly SLP revenue dropped by 69%, despite SLP earnings maintaining similar levels. The discrepancy between earnings and revenue is directly attributed to the devaluation of SLP.
However, YGG stated that "demand for Axie Infinity scholarships still outpaces the supply of scholarships available regardless of the SLP token price." According to its Q4 2021 Community Update, the number of scholars nearly doubled in one month, proving that scholarships are in high demand.
Moreover, the number of Axies in the YGG Treasury saw a sharp increase during the same period. From 35,891 to 68,465, the number of Axies nearly doubled. Such growth was possible due to the elimination of Axie breeding bottlenecks, according to YGG.
Q4 has been the most active period for YGG in terms of partnerships. The gaming guild entered into 27 new partnerships, which included games, gaming guilds, and P2E infrastructure, spending a total of $6.867 million. Of the $6.8 million, YGG spent $2.992 million on game partnerships, allocating 58% specifically to purchasing NFT assets needed for YGG players to participate in games. The remaining 42% has been allocated to purchasing governance tokens.
Notably, YGG’s partnerships showed a strong preference for mobile games. 72.76% of the partnerships were made with mobile games in the last quarter of 2021. YGG stated that partnerships will focus on mobile gaming in emerging economies while ensuring partners in PC and console gaming.
Some say crypto winter is here. But YGG is playing the long game despite its revenue model facing hard times. In the Q4 Community Report, the founders made it clear about their ambitions: "We will continue to grow and forge new partnerships to expand the reach of YGG as we help the play-to-earn market mature — this is an essential phase to ensure our long-term vision for equitable opportunities in the Metaverse is realized."
As the guild expands its sphere of influence not only to games but also infrastructure, we are witnessing a paradigm shift: gamers are reinvesting in the ecosystem as a whole instead of a specific game. The full potential of gaming guilds combined with P2E may be realized after crypto winter passes. Let’s just hope the BUIDL grind does not fade to the cold winds.