The funding conducted through a token sale was led by DWF Labs and a16z crypto, a Web3-centered fund managed by venture capital (VC) firm Andreessen Horowitz, YGG announced in a blog post on February 17.
The funding round also attracted Galaxy Interactive, Sangha Capital, and Sanctor Capital.
“We are confident that through this token purchase, YGG will continue to innovate and grow the blockchain gaming space as we provide support through this long-term partnership,” said Andrei Grachev, managing partner at DWF Labs.
By press time, it was unclear how many tokens were involved in the sale. However, estimates indicate that they represented over 35% of its estimated total asset value of $25 million in its treasury as of November 2022.
Notably, this is not the first time a16z crypto has been involved with YGG. In 2021, the company participated in another YGG token sale worth $4.6 million alongside Kingsway Capital, Infinity Ventures Crypto (IVC), and Atelier Ventures also participated in the funding round.
Focus on decentralization
According to YGG, the latest raised funds will be channeled toward building its decentralized systems with a focus on its soulbound reputation token (SBT).
It is worth noting that last year, SBT tokens underwent a test launch, but they were only available as in-game rewards, and they are non-transferable since they are permanently linked to the holder’s wallet. At the moment, YGG is working on integrating the tokens directly into games for their users.
In an effort to encourage user participation, YGG intends to introduce a new incentive program that rewards creators with SBT tokens upon completion of specific tasks or quests. YGG has also announced a revamped web app to be launched in March, featuring the Soul token as a critical component of the platform’s guild ecosystem.