Blockchain Gaming DAO and Guilds

What is a DAO

DAO is an acronym for decentralized autonomous organization. The term originated in the Ethereum community in 2015. A DAO is essentially software running over a decentralized network. It includes governance and decision-making rules. It is therefore a form of organization that is managed through rules programmed in smart contracts. The purpose behind a DAO is to design an organizational structure that could work independently of a traditional hierarchical management. It can implement, through smart contracts, contractual obligations as well as business logic rules.

A DAO is therefore a group of people gathered under a single purpose/project, and thanks to the use of the blockchain and tokens, allow their participants to vote on issues. So as if they were shareholders of a company but in this case the decisions lead to approve or not a certain solution or idea. 

A DAO is a new type of application made possible by the blockchain technology.

What is a Guild

Historically, a guild is an association of craftsmen or merchants formed for mutual aid and protection and for the promotion of their professional interests. Guilds developed in Europe between the 11th and 16th centuries and formed an important part of the economic and social fabric.

Gaming guilds

Guilds exist also in the gaming space.

Traditional gaming guilds are groups of gamers who play a game on a regular basis together. These guilds could then rise or fall with the game.

Competitive gaming guilds such as FaZe Clan, Cloud9, and Team Liquid are examples of traditional gaming guilds.

Crypto Gaming Guilds and DAO

Crypto gaming is a hot topic now in a world where  blockchain technology is revolutionizing many industries.

Recently, blockchain gaming has turned from relatively unknown games used by a minority of gamers to a rich ecosystem. These crypto games ecosystem is changing the way players can monetise in their spare time.

Gaming Guilds take the form of decentralized autonomous organizations (DAOs) made by people that work together to collectively acquire, manage, use, and monetize assets from a variety of popular blockchain games, such as Axie Infinity, The Sandbox, Decentraland, and Wilder Worlds.

Crypto gaming guilds act also as platforms to welcome and support new gamers by providing the assets they need to start playing the games. In fact, Crypto Guilds are becoming one of the most popular ways to access the play-to-earn experience. 

Earning with Crypto Guilds

Crypto Guilds bring investors, players, and creatives together to maximize the potential of play-to-earn games.

Players borrow assets from the guild in order to take part in the play to earn mechanics of specific games. In return, these players earn a share of the revenue they generate. The rest of the revenue will go to the other guild participants.

Blockchain guilds address the problem of democratizing access to crypto games, allowing players with limited budget to join the system. Because of this, P2E games are now the primary income for thousands of users who access these games through one or more guilds.

Guilds allow also managers to maximize the revenue-generating capacity of their assets, by lending them to players through their guild. The exact split between the managers and players can vary from guild to guild.

Traditional gaming guilds focus on a specific game. On the contrary, Crypto Guilds members, in case a game loses its popularity, usually move to other more profitable games. 

Institutional investors, as well as crypto Venture Capitalists, are already making significant investments on guilds as there are hundreds of crypto games entering the market.

Conclusions

Gaming has become a huge and ever-growing industry in the last decade. On top of the products impressive quality, a key  element that is turning a spare time activity into a business is the possibility to earn money while playing.

This trend is pushed by crypto games, that base the business side of the games on the underlying blockchain technology. Enriched by smart contracts, tokens and DAOs, i.e. professional organizations designed to monetize the gaming activity.

Guilds implemented through DAOs are a game changer in the gaming space.

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