Web3 gaming startup IndiGG raised $6 million in seed from Sequoia Capital India, Lightspeed Venture Partners, Variant Fund, Play Ventures Dune Ventures and Jump Capital among others, where angel investors including Alexis Ohanian (Reddit), Alan Howard (Brevan Howard Asset Management) and executives from MPL, Hungama, Nazara, WinZo and Hindustan Talkies also participated
Founded in 2021, IndiGG is a sub-DAO of YGG that aims to create a blockchain-powered play-to-earn gaming guild on the Polygon network. A DAO is an ‘organisation’ that is controlled by (usually transparent) rules encoded in software. Usually, all financial transactions, their records and program rules are maintained on a blockchain. DAOs are created with the belief that they can eliminate human error and manipulation of funds by giving decision-making power to an automated system and a crowdsource process.
These DAOs exist in a legal grey area in most countries, but this doesn’t usually affect them because they generally remain unaffiliated to any nation-state to remain truly decentralised.
The first organisation formed with these principles in mind was the eponymous “The DAO” that launched in April 2016. Its crowd sale of DAO tokens raised more than $150 Mn, making it the most successful crowdfunding project at the time. Immediately after launch, some research papers revealed that the Ethereum-based DAO has some serious security vulnerabilities that can be exploited to steal the money that has been put into the project by contributors.
The predictions in the paper turned out to be true in June 2016 when hackers attacked the DAO based exploiting the same vulnerabilities and gained access to ETH 3.6 million, worth around $50 million at the time.
This attack is one of the major reasons behind the Ethereum fork that saw the network split into two: Ethereum and Ethereum Classic. Early security vulnerabilities aside, DAOs have the potential to upend the modern corporate structures that have proliferated the gaming industry.
This shift in focus from giving gamers the best experience to earning as much as possible from them has earned their ire, and for all the good reasons. In theory, this is where DAOs like IndiGG come in, with their more community-centric approach that includes ‘play-to-earn’ mechanics.
“In five years, you will actually value your time properly, and instead of being harvested for advertisements, or being fleeced for dollars to buy stupid hammers you don’t actually own, you will be playing some on-chain equivalent game that will be just as fun, but you’ll actually earn value and you will be the harvester,” said Ohanian while speaking on the Where it happens podcast.