Short
- Two gaming-focused DAO communities, Merit Circle and Yield Guild Games, are in contention over support related to an investment agreement.
- Some Merit Circle members want to return the Yield Guild’s seed investment and reclaim its token allocation.
as Play-to-earn crypto gaming Last year’s fire, the so-called guild organization gained prominence By Supporting “scholars” with NFT assets And investing in upcoming games and startups. However, a deal between the two major guilds was struck last year, as a community-led dispute over funding and support has gained traction.
Yield Guild Games and Merit Circle are both DAO (or decentralized autonomous organizations) that are focused on crypto games. The latter is the larger and more established of the pair, with the backing From VC heavyweight Andreessen Horowitz and others. Last September, the Yield Guild introduced its MC. had invested in the seed round of Merit Circle instead of token at a discounted rate.
On May 20, a member of the Merit Circle DAO known as Honeybarrel issued a proposal Asking the community to vote on returning the Yield Guild’s original investment, canceling the Simple Agreement for Future Tokens (SAFTs) between the DAOs, and removing their share of Merit Circle tokens.
Why? Honeybarrel believes that the Yield Guild has not given the Merit Circle enough support. In a lengthy thread, the community member elaborated that other investors are more actively engaged with Merit Circle, and have done more to help it grow.
The proposal has so far received significant support from the community, based on positive answers to the thread, and is inspired by a reaction From DAO Creators Merit Circle Ltd.
“Needless to say, the offer just hasn’t taken web3 space by surprise, but has also surprised us,” the firm wrote in a reply. “Ultimately, it was inevitable that the DAO would arrive at these intersections between the rule of law and the law of the code.”
a DAO is an online community united by shared interests or goals, whether running a business, supporting protocols, investing in crypto assets or NFT, or other purpose. Often DAOs have their own governance token, as do both Yield Guild and Merit Circle. EthereumAnd token holders can vote on proposals for decisions that affect the community and its objectives.
Merit Circle Ltd wrote that the cancellation of the seed funding agreement “could have a serious adverse effect” on the reputation of the DAO, but it also wants to hand over community-led governance. “As a Limited we wish to honor all agreements, however we must balance this with the power of the DAO,” he wrote. “The DAO holds the ultimate power here.”
The creators of The DAO called for an additional week to make a counter-proposal to allow for a “timely resolution for all parties after the vote”, along with a two-week delay in the proposed actions.
In a statement Posted on Wednesday, Yield Guild Games wrote that its agreement with Merit Circle did not include any stipulations regarding “‘value-added’ services,” only “investment of capital.” The Post claims that the Yield Guild has helped Merit Circle land coverage in editorial publications and introduced the team to potential additional investors, among other support.
The Yield Guild also argues that it worked with Merit Circle Ltd to prepare a response that it thought would “reduce public pressure, provide meaningful context to the DAO, and fulfill its obligations to YGG”. will complete.” However, the Yield Guild suggested that the response lacked its input. As the above quotations reveal, Merit Circle Limited is open to the wishes of the DAO on the offer.
Our official statement regarding merit circle offer regarding our seed round is out. As we have when the founders of Merit Circle asked us to invest in their seed round, we remain in support of the Merit Circle community and look forward to growing the space together for years to come. https://t.co/BDAhCZdItF
— Gabby Dijon | YGG ️⚔️ (@gabusch) 26 May 2022
The Yield Guild wrote, “We have always looked to be allies, not allies, with our partners—this is the basis of strong partnerships.” “We support partners like Merit Circle so that we can build a better play-to-earn ecosystem. We do not see this as a zero-sum game, especially when we are in the same virtual economies with each other. Let’s try to grow together.”
The founders of several startups that Yield Guild Games has invested in and backed – including Metasports, RENFT, BAYZ and Loot Squad – have tweeted support for The DAO. At the time of this writing, it is unclear when the merit circle proposal will go up for vote.
Gaming guilds like Yield Guild and Merit Circle gained prominence last year when Ethereumbased monster-fighting game axi infinity popularized the concept of play to earn, generating millions of daily players and creating billions of dollars worth of NFT trades.
However, that game has struggled hard over the past six months because of its The economic model collapsed and the token price crashed, While both guilds have also invested in and partnered with other crypto games, their respective DAO tokens have also lost significant value: Yield Guild’s YGG token is down 95% from its peak, while Merit Circle’s MC 91 % is below.
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