The Merit Circle has the potential to shape the DAO ecosystem and bridge the gap between traditional gaming and blockchain gaming. Here's how it works.

With over 3 billion gamers in the world as of 2021, the global gaming market is expected to expand rapidly in the next few years, considering that many gamers are now starting to turn their heads towards blockchain-based games and metaverses. The possibility doesn't stop there though. A project called the Merit Circle aims to take the industry to the next level by uniting gamers, investors, and managers. How does that work?

Merit Circle token

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What is the Merit Circle?

Merit Circle (MC) is a Decentralized Autonomous Organization (DAO) that was launched in September 2021. It basically focuses on facilitating various play-to-earn games to make them feel more like a reality, where people could use it as a stream to generate revenue as well as a leisurely activity.

In order to achieve that, they need to align the interests of players, investors, and gaming managers through the use of innovative technology and a decentralized governance model.

For video game players, the Merit Circle offers a play-to-earn platform with several notable benefits such as getting access to profitable in-game assets, hosting meta-games, interacting with top gamers, and earning rewards from the games.

For investors, they could profit from the rising value of the DAO's treasury, which will make the MC token price rise as well. This can be a great alternative to earn passive income. On the other hand, gaming managers could easily host their students, switch between games, get the chance to have a vibrant pool of top players, and earn rewards.

 

Merit Circle's DAO Structure

Essentially, the base of the Merit Circle is represented by a DAO and a treasury. The Merit Circle DAO itself consists of three main parts, namely the MainDAO, SubDAO, and the Vaults.

The MainDAO is basically the central hub where all the main action happens. Inside the MainDAO, there are multiple SubDAOs where each of them caters to the various parts of the P2E industry that they support. More specifically, the MainDAO is responsible for managing SubDAOs, generating revenue, platform governance, and so on.

Meanwhile, every SubDAO represents a single P2E game inside the Merit Circle ecosystem. Therefore, SubDAOs are tasked with promoting earning strategies with positive value accrual expectancy. For example, a strategy in the game Axie Infinity encourages players to breed Axies for high-demand traits so that they can be sold at a higher price.

Now the Vaults are where the profits from those strategies are stored before being distributed back to all of the stakeholders in the Merit Circle DAO. An example of the distribution strategy could be that 70% of the profits go back to gamers, 20% is returned to the treasury, and the remaining 10% goes to the managers.

The Merit Circle is backed by a treasury, where all of the main assets and profits from the whole ecosystem are kept. The treasury balance is accumulated from the combination of cash, Non-Fungible Tokens (NFTs), tokens, and staking tokens. The point of all Merit Circle strategies is to increase the size of the treasury as well as the profitability for stakeholders.

 

Merit Circle Tokens and Their Advantages

At the center of it all, there's the Merit Circle token. It is the native and governance token that plays a fundamental role in the operation of the DAO. In order to keep the token alive, the value and utility of the token must be increased through various innovations.

As the project accommodates several entities with different interests and needs, they need to be able to keep the balance without leaning towards one side or the other. The following are some of the perks that you can get from obtaining MC tokens:

 

1. Governance Protocol

Even acquiring a single MC token can give you the right to vote on the DAO's future, whether it's a small or big decision. While the core contributors of the DAO already set up an initial infrastructure of the organization, the path is still open for change, depending on the governance voting results.

In the governance forum, any governance member can share their opinions with other members by submitting proposals. Each token holder can then vote on whether they support or reject the idea. In order to satisfy all communities within the platform, the Merit Circle ensures the widespread distribution of the token.

 

2. Play-to-Earn Index

We've mentioned before that the Merit Circle DAO has multiple SubDAOs operating in it and each SubDAO represents a specific play-to-earn game. Up to this day, Merit Circle has partnered with arguably the most popular blockchain-based game at the moment, Axie Infinity. The SubDAO for Axie Infinity currently has no less than 1,500 scholars.

This is a great opportunity for the DAO to earn a huge return and give the MainDAO a bigger power to expand its reach to other P2E games in the future. As such, the success of a SubDAO could contribute to the development of the MainDAO as well.

Owning a piece of the MC token could give you access to various play-to-earn games and valuable NFTs. The Merit Circle has a high potential to increase in value and size over time, so investing in its native token might be a great idea to add to your portfolio.

 

3. Staking and Other Bonuses

Aside from holding the tokens, you also get the option to stake them. The Merit Circle has allocated a quite large number of tokens for staking purposes as well as other activities. Token holders could stake their tokens across two main staking pools supported by the DAO. The first one is the MC staking pool and the second is the MC/ETH liquidity pool on Uniswap, a popular decentralized exchange (DEX). Users are allowed to choose between the two on a flexible schedule without any lockup periods.

Alternatively, they could schedule staking for up to 12 months to increase their annual percentage rate (APR). Either way, the staking rewards must be vested for a 12-month period after they are claimed.

 

The Tokenomics of Merit Circle Tokens

The total maximum supply of the Merit Circle Tokens is 1,000,000,000 MC and the circulating supply is currently at 42,600,000 (4.26% of the total supply) according to CoinMarketCap. The total supply will be distributed in the Token Generation Event (TGE) with the following portions:

  • Community incentives – 29.44% (294,375,000 MC tokens)
  • Team and advisors – 20% (200,000,000 MC tokens)
  • DAO treasury – 18.40% (183,980,000 MC tokens)
  • Early investors – 14.06% (140,625,000 MC tokens)
  • Liquidity rewards – 10% (100,000,000 MC tokens)
  • Public distribution – 4.10% (41,020,000 MC tokens)
  • Retroactive rewards – 4% (40,000,000 MC tokens)

 

The Future of Merit Circle Token

As of the 24th of February 2022, the Merit Circle token is trading at $1.92 and the 24-hour trading volume is currently at $21,590,742. Meanwhile, the total market cap is $81,781,534. If we take a look at its track record, we would find that the volatility is quite high because the project is still young compared to other competitors in the world of DAOs such as UNI, AAVE, CRV, and MKR.

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However, the Merit Circle has what it takes to be a successful DAO project as the infrastructure is quite solid, the partnership plans are well-prepared, and the overall roadmap is clear.

Apart from that, it is worth noting that the P2E gaming industry is getting bigger each day, especially since 2021. This brings a huge opportunity for the Merit Circle and developers alike, even more when it partners with Axie Infinity because the game clearly shows impressive development and positive support from users worldwide.

In summary, the Merit Circle token is a promising token that has a great potential to dominate the DAO ecosystem at some point. The volatility won't guarantee anything, but Merit Circle has a great prospect to expand in various directions in the future. Not only supporting gamers, but Merit Circle also use their system to support investors and gaming managers, thus providing more opportunities and potential profits.

 

Besides Merit Circle, you can try investing in Metaverse tokens which are predicted to be very promising in the future.