Last week, a member of Merit Circle’s decentralised autonomous organisation (DAO) suggested that Yield Guild Games (YGG) be expelled out as an investor. This has made it difficult for two major participants in the play-to-earn gaming industry to attempt to reach an agreement.
The proposal came in reply to a weak response to a request for investors to describe their “previous and future” intentions toward the DAO.
Both Merit Circle (MC) and YGG are play-to-earn-focused DAOs that offer scholarship plans for participants in addition to investing in online play-to-earn games.
The dispute hints at a rising number of potentially hard problems that investors must consider when investing in a DAO.
This month the seed tokens were distributed to angel investors and venture capital funds via MC’s DAO, representing 14.06% of total token supply.
In late September 2021, YGG and its co-founder Gabby Dizon invested a total of 175,000 USDC in MC in what portfolio operations manager Kazuo termed as a “high risk, early-stage investment.” This gave them just under 5.5 million MC tokens in total, each worth $0.032.
The plan aims to retrieve the tokens and reimburse YGG for its original investment.
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