TOKEN2049: The SubDAO Strategy of Yield Guild Games
In this panel discussion, YGG co-founder Beryl Li explains why YGG moved to establish its network of subDAOs.
TOKEN2049 is a premier annual crypto event held in Singapore and London where industry founders and leaders exchange insights on the developing crypto market. It brings together the global crypto industry, connecting entrepreneurs, investors, developers and the media to create networking opportunities.
During TOKEN2049 Singapore, YGG co-founder Beryl Li shared the stage with Miles Anthony, co-founder and CEO of Decentral Games, David Shin, Head of Global Adoption at Klaytn Foundation, and Ciara Sun, founder and Managing Partner at C² Ventures. The group discussed their vision of the new Metaverse, economic community, organizations within the space, digital identity and how DeFi is the ultimate form of inclusive digital finance.
The following is an excerpt from the panel discussion. Watch the full recording here.
Ciara (6:00): Right now, with the new digital space and digital culture aspects of what's happening in the Metaverse space, it's really upgrading the organizational form. We see new kinds of organizations happening with real incentives for different contributions to the community, such as developers of the game, platforms like Klaytn, and even organizations like DAOs, guilds and YGG. What do you guys think about the digital community happening to the space?
Beryl (8:56): The purpose of DAOs, or decentralized autonomous organizations, is to incentivize your community. The people are going to be contributing within your new economy or within your new application. At least with Yield Guild Games, we've contributed 45% of our tokens in circulation to incentivize the community. So these are for contributors, these are for projects to incentivize the first few users of the platform, and so on and so forth.
This is one innovation of a DAO structure. The second point I'd like to make is, Yield Guild Games was not a DAO on the first day. It was the founders that made most of the decisions. Then afterwards, as soon as they build the team, the decision-making gets distributed within the team. Then you have investors. And then we have introduced the concept of subDAOs, which is a structure where it's like a distribution channel per region.
We have the Latin American subDAO, the India subDAO, Brazil, Japan, Korea and so on. But each of these regions are its own DAO structure economy, where YGG — think of it as an association — owns a percentage of each of these subDAOs, but they don't own the entire thing.
The reason behind it is because we want to incentivize the localization within the subDAOs or distribution channels to make their own decisions, to raise their own funding, and to be able to localize the structure of their own DAO.
The association itself includes all the subDAOs or subcommittees as members of the DAO itself. They're still part of the decision-making, each of these subDAOs, in the future of how DAOs should be like, what each of them should look like. But at the same time, they could share their experiences in their local market. I think this was a really important innovation for us as a DAO and as a guild of guilds and DAO of DAOs.
You can watch the full discussion on YouTube.