Play-to-earn gaming guild Yield Guild Games (YGG) has announced the closure of a $13 million funding round headed by a16z Crypto and DWF Labs. The company plans to use the funding to speed up development of its native soulbound reputation tokens (SBT). in the future, many functions inside the YGG ecosystem will be powered by the tokens, which the firm has yet to release publicly.
SBT tokens are unique among cryptocurrencies in that they are always associated with a specific wallet, making them non-transferable. YGG conducted a soft rollout of the tokens last year, making them useable for rewarding in-game achievements. YGG officials have stated that the tokens will be integrated directly into games.
YGG’s in-game assets are highly sought after due to their potential for profit, including through yield. YGG is also among the largest investors and a manager of virtual assets in Axie Infinity.
The initial sale of SBT tokens is planned for March 2023, following a successful test launch in 2022. According to reports, the token sale accounted for about 35% of the SBT treasury, and after the sale, YGG now has approximately 45% of the reserves for SBT’s maximum supply. When it comes to reaching its expansion goals, YGG plans to leverage the partnerships it has formed with its investors to incentivise participants in NFT games. In addition, a new and improved online app from the company will be ready in March.
From the beginning, YGG has had the steady support of a16z, a Web3-focused fund managed by a VC firm headed by Andreessen Horowitz. In August 2021, for example, a16z spearheaded a $4.6 million funding round for YGG. To boost user engagement, YGG plans to roll out a new incentive scheme that would provide authors with SBT tokens for completing certain tasks or quests.
This post was last modified on Feb 20, 2023, 08:18 GMT 08:18