I will donate a Baba, Larrik and a despicable Gadiran 
only Oru wil i not part from.
Once you have set up a wallet for the project let me know ok? I’ll send them there.
And again thanks for your work on this 
1 Like
Henlo,
I don’t understand what the benefit to MC is.
“Seed Words can generate ad revenue and fees that are used to buy $MC to distribute to”
Can? Will? You buy and send to < people >, who then sell?
I understand so little.
Is this proposal just a way to find funding via the Merit Circle ecosystem? How does this pump my bags? Need less big words, more direct answers and hopium.
Honey
Meow!
Thank you @DollyDali for this proposal!
We are always fans of the Merit Circle DAO building more products, as long as they are beneficial to the DAO and its core aim - to accrue value to the MC token and its stakers/holders. Whenever we consider a proposal we ask ourselves one important question - how does this directly benefit the MC token and its stakers/holders, and does this benefit outweigh the cost? Usually the answer to this question is enough to decide whether or not we believe in a proposal.
Having read through your proposal and the three phases, it seems likely that future proposals will be needed for further direction due to the extent and complexity of this initial proposal. Also due to the fact that you are only considering a raise for the first two phases currently, it makes sense to just focus on those for the time being, and further proposals can be used to guide further expansion.
If we are boiling down your first two phases into their simplest forms then this is what we have gathered from your proposal:
Phase 1
-
Formation of a ‘Seed Words’ SubDAO with its own budget and investors
-
A 25 part word game tournament with a grand prize of $100k at the end
-
Featuring a narrative arc (storyline) which could be related to Edenhorde
-
Revenue coming from adverts and tournament entry fees
-
Estimated cost of $275k (inc. the $100k grand prize)
Phase 2
- Continuation of the tournaments if successful (potentially 2-3 a year)
- Hosting a gaming platform on the SubDAO’s own website (MC website?)
- Build more SubDAO-owned games which could require further capital raises
- Hosting other companies games (for a fee)
- Run adverts on this website (for revenue)
- Partner with other game studios to expand and move into Phase 3
- Estimated cost of $225k (not inc. any grand prizes similar to Phase 1)
Please let us know if we have misunderstood any aspect of the initial phases or if we have missed out some key details.
So now we ask ourselves the initial question of how this benefits the MC token and holders. From the proposal it appears almost all revenue will be drawn from:
- Advertising
- Entry fees to tournaments (please clarify who is paying and who can enter for free)
- Hosting fees
- Subscription fees to the SubDAO’s game website if we include one (please clarify if there will be a subscription fee or if it will be free to play)
It is said in your latest comment that this revenue will be used to buy MC and distributed to Seed Words SubDAO investors, Seed Words SubDAO stakers, Seed Words community & creators, and nonprofits.
- It is clear how this would benefit the SubDAO but how does this benefit MC holders and stakers who aren’t involved in the SubDAO?
- Won’t the receivers of this revenue distribution just immediately sell the MC, thus negating the buying?
- Does some revenue get sent back to the main DAO treasury (via MIP-7)?
- Does some revenue get distributed to MC stakers & EH holders (as was suggested in MIP-10)?
- Does MIP-7 directly apply to revenue gained by the SubDAO as well?
- Are SubDAO stakers MC stakers, as you said you don’t currently believe a native token should be used?
You also mentioned in the pros “Potential buy pressure on $MC is potentially large and sustainable”
- Where does this buy pressure come from and why? Buying MC using revenue and distributing it could just result in the MC being immediately sold.
- Will MC be needed to enter the tournaments or play the games on the website?
- Does this buy pressure just come from revenue and MIP-7 (if it applies)?
- Are we hoping that having a ‘buzz’ around MC will cause people to buy the token?
In terms of the timing, while we would be happy to be proven wrong, it seems unrealistic to be able to launch Phase 1 in just two months. If you want a successful large-scale tournament, then it’s likely marketing and building up hype will take almost as long as that alone, let alone building the infrastructure and narrative to a point where we are happy to launch.
This response isn’t intended to have a negative tone as there is a lot in this proposal that we like, such as the possible inclusion of Edenhorde NFTs, and we think successful tournaments could bring a lot of positive attention to MC as a whole. We also appreciate the effort and thought that has gone into writing this. If executed correctly and with the main MC DAO in mind, we think this could be a strong success for Merit Circle.
Overall, we are very happy to see a proposal to start building MC games, but we need some clarifications on the above questions, as we need to clearly see how this directly benefits MC stakers/holders. As long as we can see the benefit, and ensure that it outweighs the cost, we will be happy to support this proposal with a " Yes ".
Signed with left paw,
Mr. and Mrs. Snuffles
Sad Cat Capital
3 Likes
Hi again Dolly!
I am positive for the project as such, but based on some of the posts in this thread, I am becoming slightly confused on how the funding will be conducted and how the ownership structure will be set up, including what exposure and ownership MC will have in this project (other than being an advisor/partner).
It is clear that the intention is to raise USD 500k for the purpose of funding phase 1 and 2. Phase 3 is TBD. In the “Summary” section it is proposed that MC allocates funds “up to $500,000” and in the “Budget” section it is in the description of the asterisk (“*”), stated that the funds will be “[d]isbursed by DAO team in monthly instalments”. I read this to imply that the funding will be carried out by MC (or otherwise arranged by MC). The proposal also refers to this being a sub-DAO of MC, which I would read to imply that it would be owned by MC. Therefore my initial thought was that the profits would flow back to MC, i.e. earnings less budget cost items, opex etc. (including certain amount to flow back to founder Dolly), and be handled in accordance with MIP-7 (or any future profit handling scheme that the DAO may implement from time to time).
I think the proposal would benefit of clarifying the following (in addition to the points made by others in previous posts) before this proceeds to a vote, so that it is clear what we are voting on (some of this overlaps with the response from SadCatCapital just now):
-
How will the Seed Words project be structured; will it be held/ran by a DAO (ref. it being referred to as a sub-DAO) or are you intending to structure the ownership through a more traditional corporate entity? If not a crypto DAO, then I am not sure if sub-DAO is the best reference.
-
How will the USD 500,000 (or a crypto equivalent) be raised? The proposal currently seems to imply that MC will be funding, ref. also the reference to it being a sub-DAO of MC (i.e. something owned by MC). Based on Mark’s comments, MC’s intention may however be to not actually fund anything directly themselves, but rather have an advisory role and assist with the funding round (but no direct funding from MC). If correct, I am slightly struggling to see how this would be a sub-DAO of MC.
-
I understand how the Seed Words project may generate proceeds, but how will any proceeds made by/through the project flow back to the MC DAO treasury? If that is not the intention, grateful if you could elaborate how MC otherwise could have a direct economic upside in this relation.
Grateful if you could clarify the above. Many thanks.
2 Likes
Hello,
Thanks for writing out the proposal. Can you summarise in one paragraph what exactly this is? Every section I read I get a bit more confused about the scope.
Is this correct:
It’s a free word-based browser game that pays out a crypto reward via a locked wallet’s seed phrase. Earns revenue from advertising partners. Starts as a game by SW, and moves to more of a platform for other game creators to join?
I have a few questions:
-
How does this benefit MC holders? What do we get in return? XX equity split?
-
Marketing costs look low-balled to me. Where is your traffic going to come from? Are you reliant on MC to be pushing this everywhere on their socials?
Edenhorde was much different. It had a well-renowned artist, large community backing from telegram chat with money, community whitelisting, NFT speculation appeal, very cool art, and lots of free marketing/word of mouth on socials. (Pentoshi as one example, bigger CT account pushing too)
I don’t see as much an appeal for word-based games. Seems like an entirely different market/audience.
- How does this generate revenue? Is it all through on-site advertisers? Flat fee? PPC?
Have you figured out what kind of advertisers would pay for spots on this site, what kind of volume they need, and what kind of budget they’re playing with?
-
How many users would you consider this to be a success in phase two? What kind of advertising fees would you project for that number of users.
-
How do you plan on getting traditional players from eg NY times to a crypto-based game? They already have the traffic versus Seed Words starting from zero.
-
What experience do you have in any of:
- A startup
- Paid media/internet marketing
- Brand building
- Software development.
Curious as to how much hands-on building will be needed from our team. If it’s too much then I would rather we continue to focus on what we’re good at, invest in high beta shitcoins via seed with large returns, and work with world renowned artists + teams with products already in dev and mapped out.
-
Where did the budget forecasts from advertising partners come from? Is this paid media, bum marketing, influencer?
-
“We’re experimenting with a format that has never been tried” + “I definitely think it can generate enough money for me to retire–and that’s a big incentive.”
What kind of numbers do you think this can realistically generate, and why? Clawing back 1.7m from advertising revenue to break-even is a tall order, in my opinion.
The amount of time and effort needed to generate revenue for MC, in combination with the amount of energy our team needs to inject into this, makes it a pass from my point of view.
Thanks a lot,
AS
2 Likes
Gm folks, I thought through the questions the DAO raised in the governance forum and chat, and I appreciate the feedback. It would be hard to tie-in the concept solely around $MC at an early stage, which would create some friction. On the other hand, I understand the DAO’s standpoint on accruing value to $MC early. I need to develop the concept, the economy, and tech questions more before I can properly respond to the questions in the forum. For now, it might be better to go heads down and approach the DAO at a later stage when there is more to show and the project has matured. Let’s close the governance question, but if anyone has any thoughts feel free to message me in TG. Thanks again for your time, encouragement, and analysis!
–Dolly
3 Likes
TOPIC CLOSED ON REQUEST BY AUTHOR.
We felt like sharing some feedback nevertheless for a reworked version of this proposal.
First thoughts
Let’s start off with a roundhouse applause for the author of this proposal. The extensive work that has been put in putting all of this together, and truly searching for something that’s missing in the current web3 space. This could truly become an interesting revenue stream for the Merit Circle DAO and a thriving entity on its own.
Disclaimer: Up till this point two of the Merit Circle DAO core contributors, Mark & Freek have assisted the author in
Now, to progress with this proposal we would like the author to answer the following questions.
- How does the author see the role of the Merit Circle DAO in all of this?
- How do we ensure the Merit Circle DAO is in a position taking the least risk possible while still being exposed to lots of potential upside?
- Who is the author of this proposal, and why is this person the right person to lead this project?
- What is your experience and what does your current network look like?
- Where does the author find the development power for the idea?
- Can this proposal be reposted with a demo of the idea?
We will post an elaborate answer in the adjusted version of this proposal. Again, thanks a lot for your effort and we look forward to seeing this progress further!
2 Likes