Merit Circle DAO Cancels Investment Contract with Yield Guild Games

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Members of the Merit Circle DAO have approved a proposal to cancel the SAFT deal with GameFi guild Yield Guild Games (YGG). According to it, the DAO will buy out the latter’s stake for 1.75 million USDC.

SAFT has said that in October 2021 YGG invested 175,000 USDC in Merit Circle and should have received 5,468,750 MC tokens, which is about $3.82 million at the current exchange.

MIP-14 assumes YGG will pay only 45% of the amount stipulated in the agreement. The community had previously offered to refund the guild only the initial investment, however, Merit Circle members did not support this idea.

YGG and the core team of Merit Circle have noted in a joint statement that they do not agree with the DAO’s decision, but accept it.

According to the press release:

“The joint efforts of Merit Circle Ltd and Yield Guild Games have come to an agreement. The proposed solution terminates official relations between the parties. Without YGG and Merit Circle, this sector would not be what it is today.”