MIP-7: Sustainable Future Vision

The following page details the proposals brought forth in MIP-7 that are relevant to the operation, structure and strategy of Merit Circle Investments.
MIP-7 was proposed by the Sad Cat Capital and was voted on and implemented in December 2021. With MIP-2, the DAO was beginning to formalize a framework to invest its vast amount of resources from the treasury in tokens, NFTs, stable coins and yield-farming operations.
MIP-6 furthered this, by setting forth the parameters from which the DAO could de-risk from their investments. This took on a multi-faceted approach, as it was necessary to find a balance of taking profits back to the DAO, maintaining a level of productive assets used with partnered games, to also be used in P2E revenue generation.
MIP-7 expands on the previous mandate by aligning our investment framework with a sustainable future vision for the Merit Circle DAO. This would be twofold; in the growth of the DAO itself, in addition to growing the value of the $MC token.
The aim of this mandate was to create a more transparent and structured way of allocating the DAO's realized gains, which include:
  • 20% of the proceeds will be sent back in USDC to the treasury; This allows the DAO's treasury to keep building up its non-native token treasury and allows us to maintain one of the strongest treasuries in the space.
  • 5% of the proceeds will be sent back in crypto assets (mostly ETH and WBTC) to the treasury as the harder part of the cash reserve
  • 60% of the proceeds will be used to support 10%-35% below the market value; this will be done on-chain and therefore verifiable by everyone Every seven days the limit order price will be adjusted according to the market price. Bought back MC will over time be the main source for MC staking dividend. Additionally, it can be sold to strategic investors with long lockups or burned, subject to DAO governance. The general idea of the bought back stack is to enhance value accrual for the token and maximize the benefit to the DAO.
  • 15% of the proceeds will be used to buy back $MC and send them to 0x000000 This will ensure that the treasury maintains a healthy mix of non-native tokens, which can be used in expanding our metaverse index fund. Through buybacks, we are building support for the $MC token and, by making the token deflationary, enhancing its value-accrual mechanisms.