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Merit Circle, the DAO and YGG

Who is Merit Circle DAO?

Merit Circle is a decentralized autonomous organization (DAO) that is on a mission to
revolutionize gaming. They are striving to build the metaverse by encouraging people to
become a part of it through gaming. Basically, you can purchase tokens to enter different
games, and then based on the winnings you can collect more tokens, whichever form of crypto
is offered by the game of choice. Gamers then earn crypto through competitions.
Merit Circle was initially known as Axie 420, a scholarship program for the blockchain-
based Axie Infinity game. With the rebrand of the game, the DAO became engulfed with the
idea of expansion far beyond Axie Infinity into other crypto games. Other games that Merit
Circle has announced include Yield Guild Games, Sipher, UFO, Vulcan Forged, Nyan Heroes, and
others.

Merit circle is a decentralized autonomous organization DAO.

What does YGG stand for?

YGG stands for yield guild games. It is a play-to-earn gaming guild and is now
considered a bad investment. People earn crypto-based rewards around the world, however,
YGG has decreased about 4% just in the past few days. YGG is still over 95% down from its all-
time high. YGG’s objective is to develop the world’s largest virtual economy through the
optimization of assets, utilities, and revenues with stakeholders. The DAO’s revenue comes
from a group of shared NFTs, where members can rent the assets in exchange for a percentage
of in-game rewards. The rewards are then split between the player and YGG, giving profit to
everyone involved. It’s cut out to be a win-win situation.

What happened between Merit Circle DAO and YGG?

On June 14th, the Merit Circle bought out YGG and a big debate broke out on Twitter
from Tim Connors in New York City. It began when YGG formally agreed to be bought out by
the community for 32 cents per token. An official statement was outlined on May 28th by YGG
and Merit circle that clarified YGG’s support. They appeared to be working together and even
though the token was almost trading at a dollar on the open market they were bought out for
1.75 million instead of 5.2 million. The decision passed, not just by a hair, but unanimously
which looked shady in the Web3 world, according to Tim Connors.

A lot of the reason for selling came down to what was happening during the game.
People became greedy and unfair in playing YGG. The smaller and less experienced players
were taken advantage of and belittled to give the larger players an upper hand. Wealth, power,
and control took a hold of YGG. This may indeed be one of the reasons they were so eager to
sell for such a low price, seeing as the reputation was getting worse and lessening. There grew
friction between cultures, classes, nation-states, and ideologies.

The term merit means to deserve or to be worthy of, and the purpose of Merit Circle is
to give everyone those equal opportunities. YGG took the term merit out of Merit Circle
Decentralization is a huge factor here that seems to be falling through the cracks, as the power
is staying in one area resulting in centralization. There needs to be freedom for transactions,
trade, and decisions to make based on one’s own ideas and beliefs. Merit circle was created to
serve in this way, showing favor to any class group and allowing “smaller players” to have a say
in stakes and investments, however, centralization has restricted these voices and removed the
freedoms that were intentionally brought into the game.

Once Merit circle bought out YGG the proposal stated that a legal agreement would be
signed which would legally protect both sides against future litigation, as well as, enforce the
buyout legally.

After passing, YGG sold their tokens. YGG became a seed investor and lacked value in the DAO. “Seed funding is essentially equity-based funding, which requires
investors to invest money into the business at the very early stages. In return for the
investment, the investor is given an equity stake. An equity stake is a share of the business.”
The Merit Circle DAO needs the seed investors that add value and YGG was not doing so. They
were looking to only extract value and profit which went against the Merit Circle principles. The
DAO needs to see ongoing effort from everyone involved and if there was no effort they cut the
members, so only the best remained.
Capital now suggests that YGG will eventually be worthless. YGG has proven to be very
volatile and is not suggested to invest in this economy for any financial gain.