[Public] YGG White Paper FINAL

1 1 AcknowledgmentsThis document was last updated on 25 June, White Paper is a product of yield Guild Gamesand commissioned by Beryl Li, Gabby Dizonand Owl (the YGG Co-founders) for the purpose of Guild Games would like to thank the yield Guildcommunity for their Author: Beryl Contributors: Brian Taylor; Gabby Dizon; LindaXie; Jordan Clifford; Kurt Watkins; Owlof Moistness; Alexei and Editor: Leah Callon-Butler and and Design: : Mia Bao - Beep Crypto (Mandarin);This document is also available in Chinese and Whitepaper - ChineseYGG Whitepaper - SpanishFor up to date information, please rights reserved.

2 Copyright 20212 White Paper DISCLAIMERP lease Read Before Purchasing YGG Tokens or Attemptingto Use the YGG NetworkTHISYGGWHITEPAPER( WHITEPAPER )ISMEANTTOPROVIDETHEREADERWITHINFORMATIO NREGARDINGHOWTHEYIELDGUILDGAMES( YGG ) THE CURRENT DESIGN OF THE YGG TOKEN AND NETWORKAS WELL AS ITS PLANNED ,THEREADER, ,THISWHITEPAPERISNOTASOLICITATIONTOPURCH ASEYGGTOKENS( TOKENS ). NOT PURCHASE THE YGG TOKEN WITH MONEY YOU CANNOTAFFORD TO ,ANDYOUAREAGREEINGTHATTHETOKENS ,ACTION,JUDGEMENTORREMEDYAGAINSTYGGORITS SPONSORDIGITALSUCCESSHOLDINGSIFTHETOKENL OSESVALUE,THEYGGPLATFORMORNETWORKCEASEST OFUNCTION,ORIFTHEPLATFORMORNETWORK DOES NOT ULTIMATELY MEET ,ORIFYOUARECONCERNEDABOUTTHELOSSOFANYMON EYYOUUSETO PURCHASE THE TOKENS,WE STRONGLY URGE YOU NOT TOPURCHASE ANY YGG ,FINANCIAL,TAX, ,YOUARESTRONGLYADVISEDTOTAKEINDEPENDENTL EGALADVICE IN RESPECT OF THE LEGALITY IN YOUR JURISDICTIONOF YOUR PURCHASE OF THE ;THEREISNOPROMISETHATTHEYWILLINCREASEINV ALUE.

3 THEYAREVALUABLEONLYINSOFARASTHEYAREDESIG NEDTOWORK WITHIN THE YGG ,PLEASESEETHELEGALNOTICESSECTIONINTHIS White of ContentsIntroduction5 Business Model7 Business Thesis7 Selection Criteria7 Launch Plans7 Value Proposition8 The Treasury9 Economic Activities9 Fund raising9 Portfolio Reporting10 The DAO11 YGG Token Issuance11 Token Allocation Breakdown13 Network Token Rewards16 Early Structure16 Governance Proposals and Voting16 SubDAO17 Community Programs18 YGG Token19 YGG Token Value19 YGG as a SubDAO Index19 YGG Vaults20 Technical Roadmap21 Team23 Core Team23 Advisors24 Contributors24 Investors26 Glossary27 Legal Notices29\4

4 IntroductionAboutYieldGuildGames(YGG)isa decentralizedautonomousorganization(DAO) forinvestinginnonfungibletokens(NFTs) smissionistocreatethebiggestvirtualworld economy,optimizingitscommunity-owned assets for maximum utility and sharingits profits with its token (NFT)andthedecentralizedfinance(DeFi)spa ce,bringingyieldfarmingtogameeconomieswh ileaddingvaluetothesevirtualworldsbydeve loping the content and economy of these ,wewanttocreatevalueinthevirtualworldfor ourguildmemberstothriveinavirtualenviron ment-thecompetitive gamers, the artists, and content creatorsthat populate the of the marketYGG sits at the intersection of three markets eachof which is has strong growth potential: NFTsalestopped$ ,suchasBeeple, have pushed NFTs into mainstream vernacular.

5 DeFi tokens hit $50B in total locked value. There are 70m crypto wallet The global gaming market reached a value of US $ in Theriseofvirtualworlds,suchasDecentralan d,andblockchaingames,suchasAxieInfinity and The Sandbox, have gained a fully dilutedvaluation of over $ : Numbers taken as of end of March of YGGYGG on governance proposals and voting of a distributednetwork of token of YGG include: Buildingaglobalcommunityofplay-to-earnga merswhoplaycompetitivelytocollectin-game rewards ( players in Axie Infinity earningtokens from winning battles); Producingrevenuethroughtherentalorsaleof YGG-ownedNFTassetsforamarkup( model, known as a scholarship); Allowing the community to participate in the DAO bypassing proposals and voting; Coordinatingresearchanddevelopmentforgam ersintheDAOtoarbitrageonyieldgeneration by being competitive in #:~:text=According%20to%20the%20latest%2 0report,US%24% ModelAstechnologyallowsmorepeopletomovem oreoftheirlivesonline,anentiredigitaleco nomyisdevelopinginsidethesenewvirtualwor lds,knownas themetaverse.

6 YGG sbusinessmodelbuilds real-world value from fundamental Thesis TheprimaryrevenueoftheDAOwillcomefromlev eragingYGG-ownedNFTassets,eitherdirectly ,orindirectly,viaarentalprogramwhereguil dmembersutilizetheassetsin exchange for a portion of the in-game rewards goingdirectly to YGG; Inthecaseofin-gameassetssuchasland,reven uemaybegeneratedbythirdparty(non-guild members) conducting economic activitieson that in-game land; NFTownershipwillbenefitfromtheriseofthei n-gameasset seconomicvaluebeingreflected in the value of its native fungible tokenon the open governance CriteriaTheYGGbusinessthesisrequiresthef ollowingelementsofaplay-to-earngametomak eitsuitable for selection by the virtual land-based economy which can be acquired; virtual economy with a native token.

7 Functionality where players are rewardednative tokens for in-game PlansAtlaunchourtreasuryandourguildwillf ocusonthefollowingplay-to-earngamesthath avealready shown strong potential and community support: Axie Infinity produced by Sky Mavis; The Sandbox produced by TSB; League of Kingdoms produced by ,YGG sportfoliowillexpandtoothergamesthatfulf illthecriteriaandyield requirements outlined above as governed by PropositionTeam FocusThe YGG team will work on the following: Acquire4new players, ambassadors, community managers,and game masters; Incentivize5participants through Level-Up rewardprogram, Max-Level rewardprogram, class leaders, guild events, tournaments,and voting participation; Distribute token grants; Build new guild features; Build technology to expand its core activities ofrentals and yield ; Purchase virtual gaming CreationYGG s value is derived from the following: yield gained from assets acquired by treasury; yield produced from active play of treasury s virtualassets; % of APY token rewards generated from treasury s farmingactivities; Rewards generated from esports.

8 Rewards generated from raids; Rewards generated from sponsorships; Rewards generated from subscription fees; Rewards generated from merchandise UsageYGG tokens can be used for the following: Stake YGG for token rewards related to its overallactivities; Stake YGG for rewards related to specific activities; Stake YGG for exclusive content; Stake YGG to vote and participate in the DAO; Stake YGG to subscribe to exclusive merchandise; Use YGG tokens to pay for services in its TreasuryTheroleoftheYGGtreasuryistoovers eethemanagementofYGGassetstomaximizevalu ereturned to the YGG DAO over Activities Purchaseofassetsintheformofcryptocurrenc ies,virtualassetsinthemetaverse,SAFTs,in -gametokens(suchas,butnotlimitedto,Small LovePotion(SLP),whichisatokenearnedbywin ningbattlesinAxieInfinityandisrequiredin ordertobreedAxieNFTs), as well as other NFTs to contribute to thedevelopment of metaverse economies; Arbitrage farms to maximise yields; Manage locked, unvested, undistributed tokens of allparties.

9 Provideguidanceineventsthatinvolvedebtan dinterestpayments,acquisitionofassetsinc luding any buybacks and future fundraising rounds; Perform financial operations such as accounting, audits,reporting and assets are managed by the three co-foundersvia a multisignature Gnosis out of three Trezor hardware wallet signatureswill be required per raisingYGG has secured $ in a seed round led by DelphiDigital6and $4M in an A round led of fundsUltimately, the DAO will be responsiblefor the decisions regarding thedistribution of funds from the treasury onan ongoing to the DAO being in place andsufficiently decentralized.

10 The foundingteam have proposed the followingdistribution of funds based on theamount raised including projected fundsfrom the token generation raised will be distributedaccording to Figure 1 (right).Figure 1: YGG Distribution of FundsPortfolio ReportingThere are plans to add to the website a portfoliotracking component which allows guildmembers to see the financial and performance dataof YGG in sownershiptotheoverallDAO through a YGG token ownership. Tokens will representvoting rights in the DAO. YGG Token IssuanceTherewillbe1,000,000, phases scheduled at different dates and fordifferent purposes.