In the Web3 gaming track, 2021 was about 'who earns more,' while 2022-2023 was about 'who survives longer.' When the GameFi bubble burst, countless guilds silently disappeared due to broken capital chains, YGG made a counterintuitive but crucial move: complete financial transparency.

The core of this content is how YGG, during the deep bear market, made the originally opaque treasury assets public by releasing detailed Community Update reports and successfully salvaged market confidence with 'data honesty.'

A major shift in indicators from NAV (Net Asset Value) to Runway (survival period).
In a bull market, everyone boasts about NAV (Net Asset Value), which is the total value of all NFTs and tokens held calculated at current market prices. This made YGG appear incredibly wealthy. But in a bear market, liquidity dries up, NFTs can't be sold, and NAV becomes meaningless.

YGG's management keenly realized that what the community feared most at this time was 'Will the guild run away?' or 'Will it go bankrupt?'. Therefore, in the narrative of node 006, YGG no longer emphasized how many Axie lands it had (although it still does), but directly revealed its trump card: Runway (funding runway).

YGG publicly displayed its non-native assets in its treasury—hard currencies like USDC, USDT, ETH, and BTC. The report shows that even in the worst-case scenario of having no new income, the stablecoin reserves held by YGG are sufficient to support the core team and operational costs for more than 20 months. This disclosure acts as a reassurance. It tells the market: YGG is not a Ponzi scheme that survives by selling its own tokens, but a mature institution with abundant cash flow reserves.

Transparency is the moat.
Many DAOs fear disclosing finances because they are afraid of exposing losses. But YGG chose 'Radical Transparency'. They detailed in their quarterly reports:

  • SAFTs investment portfolio: Although most are in a lock-up period, it shows early bets on future top games (such as Illuvium, Guild of Guardians).

  • Operating expense details: Every penny is spent clearly, whether for product development or marketing.

This approach was extremely rare at the time. It produced an unexpected effect: the survival of the fittest sheltering effect. When other guilds were questioned for financial opacity, players and investors flocked to the 'transparent accounting' YGG. Transparency became the most expensive luxury in this wild west filled with Rug Pulls and became YGG's strongest trust moat.

It is this '20-month lifeline' that gives YGG the confidence not to cut the core development team, but rather to hire against the trend, developing products like GAP and Superquests, laying the groundwork for Day 2's recovery.

I am like a boat seeking a sword, an analyst who focuses only on essence and ignores noise.@Yield Guild Games    #YGGPlay   $YGG