Merit Circle DAO members approved a proposal aimed at repealing the law. SHAFTGameFi-guild ended with Yield Guild Games (YGG). DAO It will buy the latter’s stake for 1.75 million USDC.

Official joint statement from YGG below and @MeritCircle_IO summarizes YGG’s contributions during the partnership.

Yield Guild Games will continue to support and grow the entire ecosystem as we always do 💪https://t.co/mpeG9VY3Se

— Yield Guild Games (@YieldGuild) 14 June 2022

According to SAFT, in October 2021, YGG invested 175,000 USDC in Merit Circle and was supposed to buy 5,468,750 MC tokens, which is approximately $3.82 million at the time of writing, according to CoinGecko.

MIP-14 assumes that YGG will pay only 45% of the amount stipulated in the agreement. Previously, the community offered to pay back only the initial investment in the guild, but Merit Circle members did not support the idea.

The core team of YGG and Merit Circle noted in a joint statement that they did not agree with the DAO’s decision, but agreed.

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

The excuse for canceling SAFT was YGG’s low level of involvement in the development of the DAO. Tim Connors, founder of education platform 101, stated that according to the guild, the deal initially meant only investment, but no other assistance.

Meanwhile, the said investor, @YieldGuild aka YGG basically posted something like this:

“UH WTF. It was an investor deal. We don’t have to give you anything but money. You can’t just change the rules and throw us out.” pic.twitter.com/hkNLJcPlb2

— Tim Connors 🎒 101 (@itstimconnors) 14 June 2022

Connors emphasized that the Circle of Merit community has created a negative impact for the industry. He described the DAO’s approval of the MIP-14 proposal as a breach of the investment contract and “a dreadful stain on Web 3.0’s reputation”.

The Circle of Merit DAO may no longer need outside support, but many other projects do

And now they’ve made it harder for previous projects to get the capital they need.

Investors may rightly ask, “What if your DAO decides to screw us?”

— Tim Connors 🎒 101 (@itstimconnors) 14 June 2022

“We cannot build the future we want without the help of the outside world. […] Now they have made it harder to access capital for early-stage projects. Connors, investors rightly ask, “What if your DAO decides to ditch us?” he may ask.

Recall that Circle of Merit supported blockchain game developer Lava Lab in a $10 million round in March 2022.