Last Updated on June 16, 2022 by Bitfinsider

A crypto gaming guild, such as YGG, is essentially a collection of peer-to-peer (P2P) players who invest in games with the goal of profiting and forming strong communities in the crypto-gaming arena. During the peak of the metaverse and crypto-gaming near the end of 2021, many of these gaming guilds soared to fame.

Things have changed since then, and the year 2022 has brought with it a bear market that has impacted the metaverse as well. As a result, in order to stay afloat, enterprises and DAOs in the field are focused on cost-cutting. When the Merit Circle group chose to examine the contribution of its seed investors, the decision to split ways between these two P2E forces was set in motion.

The Merit Circle DAO has voted to end its partnership with Yield Guild Games after seven months of collaboration (YGG). Following the vote, YGG’s 175,000 USDC investment in the P2E DAO was bought out for 1.75 million USDC.

It all started with a MIP-13 proposal by a member known only as “HoneyBarrel,” who stated that YGG had failed to deliver adequate value and demanded that the SAFT be canceled and the guild’s initial payment be reimbursed. The plan received a surprising amount of support from the DAO community, prompting YGG to issue a statement clarifying that as seed investors, they were not expected to contribute any value-add beyond the investment.

The core team at Merit underlined the many diverse ways that YGG has contributed to Merit Circle’s success and growth in response, but it also acknowledged that the DAO community held the ultimate authority. Both sides knew that the idea and the existing agreement with investors were incompatible, and that a lengthy legal struggle could ensue. As a result, MIP-14 proposed a mutual agreement to end the relationship as a counter-proposal to MIP-13.

The statement reads “Collaboratively, Merit Circle Ltd and Yield Guild Games came to an agreement. The proposed solution terminates the formal relationship between the Merit Circle DAO and Yield Guild Games. This space would not be where it is today without Yield Guild Games, and not without the Merit Circle DAO.”

Is this the end of a Play to earn era in the crypto space?

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