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LEGAL AGREEMENT BETWEEN YGG AND MERIT CIRCLE DAO FOR SETTLEMENT

LEGAL AGREEMENT BETWEEN YGG AND MERIT CIRCLE DAO FOR SETTLEMENT 

Potential legal battle was blocked between Merit Circle decentralized autonomous organization's (DAO) Merit Circle Ltd and Yield Guild Games (YGG) after the parties reached an agreement after DAO voted earlier to remove YGG .


Merit Circle Ltd is a company that created Merit Circle DAO to help gaming enthusiasts benefit by borrowing items from their resources to be used to play the game and deliver educational content.


Initially, DAO approved a proposal that would cancel the YGG Simple Agreement for Future Signals (SAFT) and return it only with its initial contribution of 175,000 USD Coin (USDC).


Despite some annoyances, YGG still goes with its tenfold investment.


The development proposal, called the MIP-13, which was passed on May 28, alleges that the YGG provided a “lack of value” to the DAO and that the organization was actually a “top rival” to Merit Circle, not a partner. The proposal will "reduce fat" in the DAO to "ensure only those who want to see the Merit Circle succeed in staying".


However, the passing of the MIP-13 may not have honored the legal agreement between Merit Circle and YGG which would see YGG receive tokens in return for its financial contribution to Merit Circle.


The YGG responded to the proposal by saying that it was unclear what legal authority the DAO had to terminate the contract Merit Circle Ltd signed in its name and that there was no condition for Merit Circle to cancel the contract “regardless of how it was presented. about them in public. ”


Merit Circle has agreed to a proposal with the YGG to honor the legal agreement. It was submitted and unanimously passed on June 9 and the DAO purchased a YGG fund share.


This has brought the organization 1,750,000 USDC, a tenfold return on its original seed planting.


On June 14, both Merit Circle and YGG said they agreed on the outcome, saying the solution "still satisfies the will of the Merit Circle community, but is also acceptable to YGG."


They added that since the original proposal violated Merit Circle's previous legal agreement with YGG, it may have led to legal action.


Both sides said they saw "a risk example such as this could set the Merit Circle DAO and the industry as a whole if the agreements were not maintained and investors were not respected."



"While the legal question is a matter of long-standing debate," the parties said, "both sides agreed that it was better to resolve it."


“This will save both sides of an expensive, time-consuming, and uncertain outcome system. No two parties had to be stable, but both sides chose a constructive approach to help the Merit Circle move forward. ”

Merit Circle and YGG have stated that while the solution terminates the formal relationship between them, each will continue to "contribute to the development of the blockchain gaming ecosystem" and that Merit Circle will continue to "support" from YGG.

Source: cointelegraphy

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