Crypto Gaming Guilds Explained – LCX

Crypto gaming guilds are the next step in the evolution of the gaming industry and gamers. Crypto gaming guilds solve the issues plaguing the GameFi ecosystem. GameFi is a financial system in which users can earn money by participating in video games. The blockchain technology that powers these play-to-earn (P2E) games enables participants to earn while they play. Nonetheless, the GameFi market has been hampered by two primary issues:

First, the entry fee is too costly for the majority of players. The NFT in-game assets of popular games like Axie Infinity cost at least thousands of dollars. Even if new participants were able to afford it, they would need time to earn enough to break even.

Second, GameFi is still a niche in the cryptocurrency market, much less the gaming market. The “earning” component is emphasized more than the “playing” aspect. According to Forbes, gamers are only interested in having fun, and the majority of play-to-earn games lack the “fun” element. As a consequence, traditional gamers are less interested in GameFi than anticipated. Thus, the crypto gaming guild is an attempt to counter the two major issues in the GameFi ecosystem. 

Introduction to Crypto Gaming Guilds

A gaming guild is a community of players who assist one another within and outside of a specific game. The concept of gaming guilds has been expanded to include play-to-earn (P2E) games. The members of a crypto gaming guild include investors, gamers, and administrators. They act as intermediaries by purchasing in-game assets in the form of NFTs and then lending them to thousands of players so they can play the game and earn returns.

The dual objective of these gaming communities is:

• They invest in promising web3 gaming projects, providing the developers with capital and confidence to create a thriving play-to-earn ecosystem.
• They provide NFT characters and in-game tokens to users who may not be able to afford them otherwise. When a player effectively earns money, the guild receives a portion.

As a result of the above two-fold objectives, the potential financial obstacles faced by players as a result of playing P2E games are significantly reduced. In addition, it affords everyone an equal opportunity to participate in the metaverse’s economy. In the end, it generates a situation in which both gamers and gaming guilds benefit.

How Do Crypto Gaming Guilds Work?

A crypto gaming guild can provide prospective players with game sponsorship. Accepted players may then borrow or rent NFTs from existing guild members. The recipients of NFTs will use these digital assets to participate in and earn from the cryptocurrency game.

After that, the crypto gaming guilds will profit by sharing a portion of the guild’s revenue and expenses. The majority of the time, the profits are reinvested into the gaming guild to promote its growth.

The payment distribution fluctuates based on the crypto gaming guild. In the majority of instances, 10% is allocated to the guild, 20% to the managers, and 70% to the participants. Others permit individuals and guilds to share profits equally.

What Are the Objectives of Crypto Gaming Guilds?

For crypto gaming guilds, advancing the GameFi market is not the only objective. They intend to advance the cryptocurrency industry as a whole and bring mass adoption closer. They play the following five functions in the crypto space: 

• Community connection with GameFi: The essence of every gaming guild is its membership. The social impact potential of gaming communities is substantial, and community engagement is essential to the development of any ecosystem. They operate under a DAO (decentralized autonomous organization) structure in which funding comes from the community of DAO token holders, in this instance the guild-issued DAO token. Guild members would then invest collectively in the required NFT assets and in-game tokens.

However, the guild’s primary function and responsibility are to guide the Web3 community. Various blockchain-based games will have features and goods that users may be unfamiliar with. Therefore, the community is where they congregate to discuss and ask questions, which substantially contributes to the long-term development of the game project.