Merit Circle DAO Votes To Reduce Total Token Supply

DeFi gaming platform Merit Circle has voted to burn $170 million worth of its native MC tokens. The tokens being taken off the total supply were set aside as rewards for gamers and were deemed as having no utility.

Merit Circle, a DeFi gaming protocol that acts as a custodian to manage digital assets that gamers use as capital in play-to-earn (P2E) crypto games, has voted to burn nearly $170 million worth of its native MC tokens. The platform had sent a proposal to its DAO (decentralized autonomous organization) for vote yesterday.

According to the governance proposal, the 200 million MC tokens which will be burnt were originally set aside to be given out as community incentives and rewards. However, the Merit Circle community deemed the reward tokens as having no real utility and that there was no point waiting for occasional burns. Therefore the decision was made to remove the tokens from MC’s total supply.

“Burning them now will represent a significant reduction in total supply and fully diluted valuation, and will prevent the tokens from increasing our circulating market capitalization each month. Keeping these tokens negatively bloats our tokenomics data and serves no beneficial purpose,” stated Merit Circle in its burn proposal to the DAO.

Merit Circle offers “scholarships” to gamers, which allows players to borrow non-fungible tokens (NFT) that can be used as an entry fee for a crypto game. The protocol charges a percentage from in-game rewards earned by the players, which will be used to pay back the loan.

The proposal received overwhelming support from the community, with 99.7% voting in favor of burning the tokens. Merit Circle will take 200 million off from the total supply of 1 billion MC tokens. Since the burn occurred, Merit Circle has lost 8.4% of its value and the MC token is currently trading at $0.79.