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Sigma DAO Whitepaper
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Ecosystem Problems

Existing gaming guilds in the play-to-earn space are inherently flawed. There remains a lack of process, understanding and scalability. In the most basic model, a gaming guild owns a collection of NFTs that generate tokens. The prices of these NFTs and the underlying token generated is thus heavily influenced by factors such as emission rates, number of owners among others. There have been games designed around breeding (Axie Infinity, Pegaxy) and many other mechanics that create shifts in the ecosystem.
The majority if not all current generation 1 guilds were built around a single game. YGG for example has over 95% of their scholars in a single game - Axie Infinity. GGG has 80% of them in Axies. As such, the majority of these gaming guilds were never properly equipped to deal with the integration and process required to handle hundreds if not thousands of transactions.
The primary issues are we've identified thus far are:
  • Lack of infrastructure surrounding new game releases results in a heavy concentration on single games
  • Primary token issuance was designed without any utility in mind but simply to fund scholarships and treasury buybacks creating little incentives for users
  • Scholarship programs are subject to exploitation and gamers/scholars can easily join multiple guilds for a chance to win multiple scholarships
Taking all these factors into consideration, we want to prevent the abuse of the system and create a gaming guild that is both sustainable and transparent.
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