Thursday, June 1, 2023

Ethereum’s DAO Requests a Refund


Play-to-earn cryptocurrency gaming exploded last year. So-called guild groups soar into popularity by providing NFT resources to scholars and participating in new games and entrepreneurship. A pact was struck last year between two important guilds. However, it looks to be unraveling as a community-led debate for money and support gains pace.

Both Yield Guild Gaming and Merit Circle are DAOs focusing on crypto gameplay. The former is the bigger and more famous of the two, with funding from Andreesen Horowitz and many others. The Yield Guild participates in Merit Circle’s seeding round last September in return for cheaper MC coins.

All about HoneyBarrel

On May 20, a Merit Circle DAO participant identified by the name HoneyBarrel publishes a request to the public calling for a vote on reimbursing Yield Guild’s initial investment. They want to dissolve the Simple Agreement for Future Tokens. This involves the DAOs. Thus, they also wish to eliminate its part of Merit Circle coins.

HoneyBarrel says that Yield Guild really hasn’t given Merit Circle sufficient assistance. Focusing on strong responses to the thread, the plan is receiving strong support from the community. Moreover, they will be prompting a reaction from DAO designers, Merit Circle Limited.

A DAO is an online platform that is unified by common interests or purposes. This includes running a company, promoting a protocol, trading in digital currencies or NFTs, or pursuing other objectives. A DAO may have its own management token, as Yield Guild and Merit Circle do on Ethereum. Hence, token owners may decide on ideas affecting society and its goals.

Merit Circle Limited writes that terminating an initial financing deal might harm the DAO’s credibility. However, it also wishes to yield to community-led governance. They explain that, as a small company, they want to follow all agreements. Nevertheless, designers must balance this with the DAO’s authority.

The DAO is the Fundamental Owner

The designer of the DAO demands a two-week postponement in the planning process. It also allows an extra week to draft a counter-proposal so that all sides may reach an agreement following the vote.

Yield Guild Games asserts in a message on Wednesday that its deal with Merit Circle did not involve any requirements for value-added services. It is merely about cash investment. According to the article, Yield Guild is assisting Merit Circle in obtaining journalistic attention. Moreover, it helps them by exposing the team to prospective new investors, among other things.

Yield Guild also claims that it collaborated with Merit Circle Limited to develop a statement that it believed would alleviate media outrage. Hence, they can offer significant context to the DAO and meet its commitments to YGG. Nevertheless, the Yield Guild claims that the answer lacked its involvement. According to the remarks previously, Merit Circle Limited looks to be willing to accommodate the DAO’s requests about the offer.

Gaming guilds such as Yield Guild and Merit Circle were in everyone’s popularity the previous year when the Ethereum-based monster-battling videogame Axie Infinity promotes the play-to-earn idea, resulting in millions of everyday gamers and billions of dollars in NFT exchanges.

That videogame, on the other hand, is struggling immensely over the last six months as its socioeconomic structure fails and token values plummet. All guilds engage in and collaborate with other crypto games. Thus, the value of their individual DAO tokens drops significantly. As a result, Yield Guild’s YGG token is below 95 % out of its high, whereas Merit Circle’s MC is under 91 %.

Christina Jones
Christina Jones
Christina Jones is the owner and CEO of Cryptoconstellation Before starting Crytpoconstellation, Christina spent ten years as an Editor in Chief at a well-known publishing house, Editorial Planeta SL, in Madrid.

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