Yield Guild Games, an investment DAO focused on the use of NFTs in virtual worlds and blockchain games, raised $12.5M in 31 seconds on July 27.
The launch, which happened on Sushiswap’s Miso token launch platform, caused a frenzy as only 32 wallet addresses bought up 25M of the DAO’s YGG tokens in the span of three Ethereum blocks. As BeyondMimesis tweeted “It was over even before my ‘Approve’ transaction got through :(.”
For context, the guild’s Discord server has 37.8K members.
Yield Guild Games elected to use a Dutch auction, a mechanism whereby the YGG token’s price was set to decrease from $0.50 to $0.20 over the course of 24 hours or until all the tokens were sold. Highlighting how quickly the tokens sold out, the token price never got below $0.49.
For the Community
Yan Liberman, co-founder and managing partner at digital asset research and investment firm Delphi Digital, contextualized the auction, tweeting that the YGG sale represents only 2.5% of the total token supply. Delphi Digital led Yield Guild Games’ seed round of $1.325M in April.
“Up to 45% of the total YGG token supply has been reserved for the community,” according to a Yield Guild Game’s post outlining the sale. That distribution will kick off via an airdrop to members of the project’s Discord who have made contributions since the early days.
Liberman stated, the guild’s “scholars” will also receive YGG tokens via airdrop. One aspect of the Yield Guild Games organization is a scholarship program that loans out NFTs to be used in the play-to-earn game Axie Infinity to those who wouldn’t otherwise be able to afford them. Players then earn SLP, Axie’s in-game ERC-20 token, using the NFTs. Seventy percent of the proceeds go to the scholar, 20% to the Yield Guild Game’s community manager who trained them and 10% to Yield Guild Games’ treasury.
The guild is betting big on play-to-earn games. As of its July 6 post, Yield Guild Games owns digital assets across 10 other blockchain-based games and intends to provide scholarship opportunities across these games and others.