Seems like TreasureDAO has run into a bit of a roadblock. The once ambitious project, which had aimed to shake up Web3 gaming, has now decided to shut down its mainnet. Why's that? Because the cost of running the network was significantly higher than any revenue it was making, essentially, trying to fill a bathtub with the drain open wide.
Financial Woes Lead to Community Decision
The DAO team, after some soul-searching and a community vote, has compelled users to bridge out their assets from Treasure Chain, its Layer-2 gaming network.
Treasure Chain Wind-Down⛓️🌇
— Treasure (@Treasure_DAO) May 6, 2025
Following the successful ratification of TIP-52, the Treasure Chain will shut down on May 30, 2025. Holders must bridge out all ETH, MAGIC, SMOL, and NFT holdings by the end of May.
Additional updates, timelines, and next steps are outlined below👇
Not the greatest way to keep users in check, but at least they issued the warning. This has only been two months since they made public their Q4 2024 financials, when they had splashed a whopping $8 million in costs, and a measly $2.4 million in stablecoins left to settle their bills. Ouch.
The Financial Reality Check: A Very Short Runway
Co-founder John Patten revealed a complete disclosure in April 2025 and alerted everyone that the treasury was hemorrhaging MAGIC tokens faster than a Fourth of July firecracker.
The Next Chapter of Treasure ✨
— Treasure (@Treasure_DAO) April 2, 2025
We're releasing an official statement on our pivotal transition, outlining the rationale behind leadership changes, financial restructuring, and our bold new strategic direction.
Full details 👇 pic.twitter.com/BjWgZxc98l
Having only $1.56 million worth of MAGIC tokens left and $450,000 a year just to pay the bills, things were not shaping up well. But worry not, the DAO assures it remains "in a good position" thanks to a USDC runway that supposedly will last until mid-2026. There is hope—just not quite enough to keep the mainnet going, apparently.
So, where are TreasureDAO's plans going next? Instead of pumping money into the gaming network, it's directing its attention towards its NFT and tech sectors. No more moves toward third-party games, as the attention turns to AI and NFTs now. The treasure might not be shining as brightly as before, but hey, they're looking for AI agents and NFT companions to bring the glitz back.
Is it a new beginning, or a last-minute lifeline? It ain't over yet, but it certainly does feel like a whole new chapter for TreasureDAO.
Abimbola Adu
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