Merit Circle is a decentralized autonomous organization (DAO), meaning there's no central entity making decisions. Decision-making is achieved through voting by the stakeholders who own the MC token. In this section, we describe how stakeholders can make proposals and vote on them.
MC token
The MC token was created to decentralize the management and development of Merit Circle's DAO, investments and platform.
More information about the MC token can be found here.
How does Merit Circle's governance work?
Similar to what we've seen with other successful DAOs like Yearn Finance, our decision-making process occurs through a governance forum. In this forum, individuals can start a proposal, which will be voted on by the other MC token holders.
Proposal example
An example of a proposal is the following:
Proposal to redeem the liquid (crypto-assets and liquid NFTs) part of the treasury when $MC market cap is below the treasury value of the DAO. This is akin to a company trading below book value. Liquid part of treasury could be used to buy back MC tokens, to use as (locked) distribution to stakers or to be burned. This effectively creates a soft floor for the MC token.