Following the official statement released on May 28th regarding the Merit Circle issue, Yield Guild Games publicized the final joint statement to clarify and come up with an agreement with Merit Circle on June 14th.

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The payout from Merit Circle

According to the joint statement, Merit Circle (MC) will pay out $1,750,000 to Yield Guild Games (YGG) as a settlement. The payout is ten times YGG’s initial investment, which is to protect both sides from future litigation.

The refund includes an investment from YGG founder Gabby Dizon’s personal fund, Nifty — which the DAO had initially voted to return. Besides that, Merit Circle is also going to cancel YGG’s so-called Simple Agreement for Future Tokens (SAFT).

In the joint statement, once again Yield Guild Games restated its support since Merit Circle’s early forming days. They argued that YGG’s early inclusion on the cap table has already contributed significantly to the success of Merit Circle. Given the fact that, at the time of considering, YGG was valued $10 Billion. YGG also added that Gabby Dizon also coordinated additional funding from a private angel network that he was part of to support Merit Circle’s early journey. Moreover, YGG leveraged their status and brand in the industry to ensure Merit Circle Ltd got their exposure via Coindesk which helped raise the Merit Circle profile greatly ahead of the public sale.

YGG in the joint statement also pointed out that the chosen tool used to blame YGG was too crude and did not do justice to prior agreements. The joint statement clearly points out that the divergence between the prior agreement and the DAOs proposal would have likely led to legal action against Merit Circle Ltd.

While the legal question is one that could probably be argued at length, both parties agreed it was better to settle. This would spare both parties from a costly, time-consuming, legal process with uncertain outcomes.

YGG – the pioneer in GameFi DAO

Yield Guild Games is a DAO, which stands for decentralized autonomous organization, composed of gamers of play-to-earn games. There’re currently tens of thousands of gamers and counting who are utilizing NFTs in play-to-earn games to generate real cash flow. The DAO aims to create the largest virtual world economy by investing in play-to-earn games plus their in-game assets, sponsoring millions of play-to-earn gamers, and building tools that will enhance the future of gaming in the Metaverse. YGG optimizes its community-owned assets for maximum utility and shares profits from those assets with its token holders. Participants in the DAO will be owners and managers of the entire ecosystem of the YGG Network.

Yield Guild Games follows a phenomenal Play-to-earn trend, which has flipped the free-to-play dynamic on its head. Although players often need to spend money to start playing a play-to-earn game, they are rewarded for their in-game play with assets that can be sold for real-world value, including ownership and governance of the games themselves. Play-to-earn games won’t require large IRL tournaments for prize money, but instead will make substantial prizes attainable for all players in the virtual worlds.

Play-to-earn gaming is different from existing gaming models. Previously, in-game assets were siloed and gaming companies did their best to minimize the sale of the assets through unofficial “gray market” channels. Examples of this, like farming gold in World of Warcraft was a precursor to the play-to-earn movement, but this type of activity was not beneficial to the gamer or the game—it was antisocial. Play-to-earn game mechanics are designed to make this type of arbitrage pro-social, and the gameplay even better. Play-to-earn games also allow for item composability, which means the NFT items can be transferred across many games – the thing we can’t see in traditional games.