Learn on SubDAO: The Importance of Decentralized Autonomous Organizations (DAOs) for the Gaming Ecosystem (GameFi)

SubDAO Protocol
5 min readJul 30, 2022


Blockchain gaming is one of the most important applications of Web 3 and Blockchain technology. Of course, the reality of getting rewarded while playing games (a.k.a Play-to-Earn “P2E”) appealed to traditional gamers. With the growth of Blockchain technology, P2E has massively exploded; however, this growth comes with a few drawbacks of its own.

Although many P2E games are free to play, the best ones require a substantial upfront investment, which may be too expensive for the average gamer to afford. To solve these problems, Decentralized Autonomous Gaming Guilds (DAGGs) were created to provide equal opportunities for gamers to access and profit from the P2E ecosystem.

What is a Decentralized Autonomous Gaming Guild (DAGG)?

A DAGG is a term coined from the combination of “Decentralized Autonomous Organization (DAO)” and “Gaming Guild (GG).” As you probably already know, a DAO is a community-run organization without any central authority governing decision-making; DAOs are fully transparent, and all processes are autonomous, enabled via smart contracts. On the other hand, A gaming guild is a group of gamers who come together in a community to share ideas, support, and all other matters on different games they play. In fact, they could combine to form a team to compete against other guilds.

Of course, guilds are important in the gaming community, and when the concepts of decentralization and autonomy are embedded in the gaming community, a DAGG is created.

Why Are DAGGs Important?

According to a report from industry analysts, DappRadar and Blockchain Game Alliance, investors have poured a whopping $2.5 billion into blockchain gaming in Q1 2022, and this figure is expected to hit $10 billion by the end of the year. The expansion of the industry is evident, and it is only normal that the industry will see an increase in DAO participation; if players will participate in blockchain games, why not participate in a blockchain-based community?

Of course, one could erroneously assume this to be unnecessary; many could say, what is the need for decentralized organizations when they could simply engage on discord or a specialized subreddit. However, a DAGG is more than just a community for interactions; with a DAGG, a gaming community can engage in:

  • Joint ownership of expensive gaming assets
  • Tokenized ownership
  • Automation via smart contracts
  • Transparent decision-making

Joint ownership of expensive gaming assets: With a decentralized community, gamers can organize decentralized fundraising, where mutual funds can be pooled together for various uses. For example, these funds can be used to purchase LAND parcels on Decentraland or the Sandbox; alternatively, they could rent lands and build their own games on these metaverses. Furthermore, they could purchase in-game NFT assets, which they can utilize to earn tokens amid gameplay, or by lending them out to non-guild members.

Alternatively, they can lend them to guild members at no cost, enabling members of the guilds to access these expensive gaming assets by participating in a community.

In truth, these communities can be created and managed without a DAO; however, that will require trust. To operate in a fully trustless and decentralized community network, where everyone can be sure that they won’t be cheated in decision-making or in sharing rewards, DAGGs are important.

Tokenized Ownership: When funds are pooled in a DAO, each member gets an “equity token,” which represents their stake of funds in the DAO. So, when the initial investment in the P2E games becomes ripe, a smart contract is automatically triggered to share the rewards according to pool share; hence, no one is cheated.

Automation Via Smart Contracts: Manual processes can be rigged or manipulated to favor some members of a traditional gaming guide more than others. However, with smart contracts, all processes are transparent and trustless. Apart from facilitating honest operations, the automated processes reduce operating costs by massively cutting down administrative expenses and eliminating the possibility of human error. Hence, hierarchical management and bureaucracy are eliminated — all members can equally contribute to and benefit from the gaming guild.

Transparency: DAOs decision-making is usually carried out by votes; once a proposal is set, all members can vote in support or against the proposal, and the results will be transparent for all to see. Hence, no one will feel cheated. Similarly, all transactions made with the DAGG’s joint funds are available on the blockchain and cannot be edited. Hence, funds cannot be embezzled.

How DAGGs Generate Income via P2E games

  • Active Gaming: DAGG members can nominate and vote for a member to take control of gaming to compete in challenges, where they can win several tokens and NFT assets. These tokens can be sold on marketplaces for stablecoins which are transferred to the DAO wallet, or they can be used to purchase other in-game assets or experience points (EXP). The elected gamer can also represent the guild, participating in competitions and completing challenges to win tokens and NFT assets.

Lastly, during active gaming, there are options to create and breed new in-game assets, which can have varying levels of rarity. If done well, the DAGG could acquire rare NFT assets which could be sold for expensive amounts.

  • Renting out NFT assets: As an alternative to selling the acquired NFT assets, the DAGG can rent out NFT assets (particularly LAND parcels) to non-DAGG members for a fee, which serves as an income.
  • Staking Tokens: Many metaverses and P2E gaming platforms permit staking, particularly for metaverses that involve “LAND” ownership. Hence, the DAGG can stake tokens for extra profit.

Where Can I Create a Decentralized Autonomous Gaming Guild (DAGG)?

SubDAO has created two major DAO templates; the ventures DAO and the community DAO, both of which can be used to manage a DAGG; all depending on your preference. For example, if your DAGG is focused on investment options and profit generation, then you can utilize the SubDAO ventures template; however, if you only seek to facilitate a decentralized community for joint asset usage, you may utilize the Community DAO template.

If you are interested in blockchain gaming, you should embrace a blockchain community that helps you access and profit from premium P2E games without spending a fortune.

About SubDAO

SubDAO is a multi-chain DAO protocol. It allows any decentralized organization to swiftly create and manage DAOs. We are committed to serving as a Web3.0 entry by providing blockchain-based digital agreement signing, DAO social networking, asset management, and other tools and services.

The founding team of SubDAO is composed of the former Technical Team leader of the IBM Group and many early well-known developers from Polkadot. SubDAO has completed multi-million dollar financing from dozens of institutions including Hypersphere, Huobi Ventures, OKEx Blockdream Fund, as well as investment by Messari founder Ryan Selkis.

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SubDAO Protocol

SubDAO is a DAO infrastructure that helps manage digital assets through middleware, multi-sig, and other decentralized features.