Maven 11 Capital is excited to announce our investment in the $4.5M seed round for Merit Circle. Merit Circle is positioning themselves as the dominant DAO-of-DAOs for anything gaming and metaverse-related.
One of the main growth sectors within Web3 is play-to-earn gaming. This P2E sector has seen a massive uptick in revenues and user numbers. The most prominent example of this industry is Axie Infinity, which has successfully managed to change traditional pay-to-play gaming into play-to-earn. At the time of writing Axie Infinity has generated almost $1B in revenue from trading in-game items and currencies.
P2E trailblazer Axie Infinity has generated the most revenue of any dApp in the past 180 days.
Due to this explosive growth, P2E has also started to face its own challenges: while it can drastically improve financial inclusion, price appreciation of in-game assets has started to price out beginning users. Because these items are often required for playing the games in an efficient manner, providing these assets and currencies to potentially profitable players can be mutually beneficial.
This is where a mutually beneficial cooperation like Merit Circle can come in. Liquidity providers can pool their digital in-game assets, and supply these to players to leverage their skills and profitability. This allows the players to access the items and capital required to play, and allows LPs to make a return on their digital assets.
As mentioned, Merit Circle is structured like a DAO-of-DAOs. The overarching DAO is supported by a potentially limitless number of sub-DAOs, which can be initiated for different P2E games, or different strategies involving different items and aspects of those games. For investors in Merit Circle, this provides an almost index-fund-like exposure to P2E gaming and in a broader sense, the metaverse.
Merit Circle’s hierarchical structure provides diversified exposure to value created in P2E games and the metaverse.
“We are very excited to back Merit Circle on their road to becoming the index-fund DAO of the metaverse. We remain confident that growth of the Web 3.0, play-to-earn gaming and the metaverse in the broadest sense are here to stay. The hierarchical structure of Merit Circle, with one main-DAO and multiple sub-DAOs for different games and strategies, can provide both players and investors with the tools and opportunities they need in this new and exciting space.” Balder Bomans, managing partner at Maven 11
We are very keen to be working alongside the amazing Merit Circle team and look forward to exploring and growing the metaverse together.