After a period of silence, the two big names of the Play-to-Earn game village, Merit Circle (MC) and Yield Guild Games (YGG), have officially parted ways.
On June 14, Yield Guild Games on behalf of both Merit Circle posted an official statement about the “drama” that happened. In it, they emphasized the arbitrariness of the MPI-13 proposal.
If agreements are not upheld and investors are not respected, it will set a bad precedent, even endangering DAOs and the industry as a whole. After a process of discussion, they decided to choose the constructive path of “reconciliation and vigilance”.
Accordingly, Merit Circle will buy back the promised amount of tokens allocated to YGG for 1.75 million USDC at $0.32/token, 10 times higher than the initial investment value. Even so, this price is up to 2.5 times lower than the market price of MC tokens, which is currently $0.8/token.
Last September, YGG entered the seed round and invested a total of 175,000 USDC in Merit Circle through a SAFT agreement signed between the two parties. Accordingly, YGG will own nearly 5.5 million MC, valued at $0.032 per token. The project also started vesting for seed round investors last month.
As agreed, Yield Guild Games (YGG) and Merit Circle will work together to provide scholarships to each other’s communities globally.
Everything was still going very smoothly until one day, the DAO Merit Circle admin account “HoneyBarrel” sent out a proposal urging people to seek to “depose” the investor status of YGG, ending its cooperation relationship, ready to buy back the number of MC this organization is holding and return the original USDC investment.
Since then, the two giants of the Play-to-Earn game village have started “vehemently contradicting”.
The owner of the MPI-13 proposal “accused” YGG of not keeping his word. Yield Guild Games had previously promised to introduce MC to the network of major funds in the industry to improve the reputation of the project, but they just said it and didn’t do it. Soon after, the proposal received a strong response from the community and the project team contacted YGG immediately.
For its part, in response to the above action, YGG said that the investment ended in October last year and was not obliged to provide any value-added services for the couple outside of the invested capital. Furthermore, there is no provision for Merit Circle to unilaterally terminate the contract and return the investor’s contribution.
Reaffirming firmly in the final announcement, YGG clearly stated what they have contributed to MC, in addition to the committed investment. And as a result, today Merit Circle and Yield Guild Games officially broke up after 7 months of attachment. They decided to end the “drama” in peace and wished each other to advance together on the upcoming path.
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