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- Merit Circle Ltd is a firm that launched the Merit Circle DAO to assist gamers interested in play-to-earn games by lending goods from its treasury and providing instructive content. Originally, the DAO approved a proposal to dissolve YGG’s Simple Agreement for Future Tokens (SAFT) and merely repay the seed investment of 175,000 USD Coin (USDC).
- While the legal question might likely be debated for hours, the organizations added, all sides felt it was wiser to compromise. This would save both parties money and time by avoiding a costly and time-consuming legal process with unknown outcomes. Neither party was forced to reach an agreement, but both chose the constructive way to assist Merit Circle move forward.
- The MIP-13 proposal, which was passed on May 28, said that YGG gave lack of value to the DAO and that the guild was a top competitor to Merit Circle rather than a partner. The idea will cut the fat off the DAO in order to guarantee that only those who want Merit Circle to succeed remain.
The approval of an investment plan called into question a legal agreement between the companies, and the Merit Circle DAO agreed to a counterproposal to assure a resolution. After the Merit Circle decentralized autonomous organization’s (DAO) funding firm Merit Circle Ltd and Yield Guild Games (YGG) struck an agreement after the DAO had voted to remove YGG, a potential legal battle was avoided.
A Ten Fold Return On Its Initial Seed Investment
Merit Circle Ltd is a firm that launched the Merit Circle DAO to assist gamers interested in play-to-earn games by lending goods from its treasury and providing instructive content. Originally, the DAO approved a proposal to dissolve YGG’s Simple Agreement for Future Tokens (SAFT) and merely repay the seed investment of 175,000 USD Coin (USDC). Despite several squabbles, YGG has made a tenfold profit on its initial investment.
The MIP-13 proposal, which was passed on May 28, said that YGG gave lack of value to the DAO and that the guild was a top competitor to Merit Circle rather than a partner. The idea will cut the fat off the DAO in order to guarantee that only those who want Merit Circle to succeed remain. However, the passage of MIP-13 may have violated a legal agreement between Merit Circle and YGG, under which YGG would get tokens in exchange for its financial support.
In reaction to the suggestion, YGG stated that it is unclear what legal authority the DAO has to void a contract Merit Circle Ltd signed on its behalf, and that there was no condition for Merit Circle to rescind the contract regardless of how this has been presented to the community.
To uphold the legal agreement, Merit Circle and YGG came up with a counterproposal. On June 9, it was uploaded and overwhelmingly passed, and the DAO purchased YGG’s money allocation. The guild received 1,750,000 USDC as a result, a ten-fold return on its initial seed investment. Merit Circle and YGG both expressed their satisfaction with the decision on Tuesday, noting that the solution still satisfies the wish of the Merit Circle community, but was reached through negotiation.
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The Constructive Way To Assist Merit Circle Move Forward
They went on to say that because the original proposal conflicted with Merit Circle’s previous legal arrangement with YGG, it would have very certainly resulted in legal action. Both parties acknowledged the danger a precedent like this could set for the Merit Circle DAO and the industry as a whole if agreements are not upheld and investors are not respected, as well as the danger a precedent like this could set for the Merit Circle DAO and the industry as a whole if agreements are not upheld and investors are not respected.
While the legal question might likely be debated for hours, the organizations added, all sides felt it was wiser to compromise. This would save both parties money and time by avoiding a costly and time-consuming legal process with unknown outcomes. Neither party was forced to reach an agreement, but both chose the constructive way to assist Merit Circle move forward. While the solution ends their formal connection, Merit Circle and YGG both stated that they will continue to give their all to growing the blockchain gaming ecosystem and that Merit Circle will continue to get continuous support from YGG.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
