The Merit Circle DAO is a decentralized organization, meaning that no one central party has full authority over the organization. Through our governance forum; our community of investors, gamers and Web3 partners use their $MC tokens to vote on MIPs (Merit Circle Improvement Proposals). These proposals are introduced, discussed and voted on in a democratic manner, and can greatly influence the scope of the DAO’s activities.
Since our inception, the DAO has undergone a significant restructuring to evolve with the changes in the industry and to position ourselves as a leader in the space. Early proposals lay the foundation of procedures for the DAO to begin dispensing its assets and making investments. As we began to scale, it became necessary to group and delegate certain duties to integral contributors in the DAO. The layout of the current DAO structure was introduced in MIP-17, which aimed to formalize the relationships it had with these core contributors. This would not only help us to better manage the various functions of the DAO, but also to clearly define the legal rights of our token holders.
Merit Circle is a vertically integrated gaming DAO, with its activities organized into 4 distinct groups: Investments, Studios, Gaming and Marketplace. The actions taken in each vertical are governed by the decisions of $MC token holders. Earlier MIPs (such as MIP-2) managed the DAOs investments by the formation of an investment committee and investment mandates. Proposals for the development of the gaming platform (MIP-4) and NFT marketplace (MIP-17) also passed, allowing core contributors to begin building out the products of the two verticals.
Digital assets are directly held by the DAO through the wallets that are held by the distributed and selected multi-signatories. This ensures that decision-making surrounding the envisioned activities of the DAO continue to be managed by the community. With the DAO’s digital activities built out, the physical aspect of its corporate structure needed to be clarified. Under MIP-17, the Merit Circle DAO Trust was formed, an entity holding ownership of MCL (the bootstrapping entity of the DAO) and MCDAO Ltd (the administrative entity of the DAO). The trust acts in accordance with DAO governance, and ensures that its equity, assets and IP are legally protected.
MIP-17 also details the involvement of Orange Pill Ltd, a software development company that is tasked with managing the main development activities of the DAO. Orange Pill was also voted to manage the social channels, and other general infrastructure for Merit Circle. Operating as a separate entity, the organization is given mandates to execute on behalf of the DAO. The DAO remains flexible, as community members reserve their right to discuss changes in operations and thus the contractors that it takes on.
We are focused on remaining agile throughout the changing tides in our industry; and will continue to explore improvements for our DAO structure that protects our assets and token holders. Going forward, we will continue to focus on stimulating growth, decentralize decision-making and promote treasury conservation.