Wednesday, June 12, 2024

YGG and Gaming DAO Merit Circle are caught up in a DAO governance dispute.

Play to earn has been a very popular gaming industry in the crypto space but giants in this field are at loggerheads now. YGG or Yield Guild Games and Merit Circle DAO have been in a contract for some time now.

YGG invested about $175,000 into Merit Circle so that it can expand its scholarship program. In these scholarships, the gamer can borrow an NFT but a cut of his earnings is then procured as a payment for the NFT.

The senior management at Merit Circle DAO now thinks that the value being brought by YGG is meager and insufficient. DAO expected YGG to introduce them to other investors but have been disappointed by their interest. They also say that YGG has added little to no value to the project that they are working on.

Merit Circle DAO have said that they want to return the initial investment of $175k and let go of the contract. YGG stated that the contract only states exchanges of tokens for capital and not any value-added services. As of now, it is not known whether there was a clause that could cancel and refund the investment.

With both companies seeing a loss in their token values in the past month it will be interesting to see what happens next. YGG is down by 62% while the Merit Circle’s token is down by 44% in the last 30 days. This can be attributed to a variety of factors but both companies are now at crossroads that will only further hurt them.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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