Analyzing Gaming Guilds: Merit Circle

Key Insights

• Guilds like Merit Circle offer prospective GameFi investors an indexed bet on the sector's success due to a diversified treasury of gaming assets with venture-profile returns.
• The fully diluted value of Merit Circle’s MC token trades at a 26.7x multiple to the value of its venture assets when discounted for illiquidity.
• The Merit Circle DAO would have to generate an average of 2,700% returns on its venture assets for its venture portfolio to trade at par with the current fully diluted value (FDV).
• Merit Circle provides evidence that gaming guilds should choose between specializing in player development or capital allocation rather than attempting to do both.

Since the play-to-earn model emerged in the middle of 2021, crypto gaming guilds have received relatively little attention compared to the games they support. Gaming guilds are groups of investors, gamers, and advisors that help onboard prospective gamers to Web3 games.

Gaming guilds may uncover growth opportunities for different ecosystems during the current down market. In this report, we will analyze the Merit Circle guild to develop a framework for analyzing other gaming guilds and their potential impact.