Blockchain gaming ecosystem Treasure DAO has introduced a drastic restructuring, closing down its recreation publishing operations and Layer-2 community Treasure Chain resulting from extreme monetary pressure.
The information despatched its native token, Treasure (MAGIC), plunging 18% in 24 hours, worsening a months-long downtrend.
How Treasure DAO Bought Right here
Treasure DAO gained early traction as a decentralized gaming hub, utilizing its MAGIC token to fund recreation growth and partnerships. Nonetheless, monetary mismanagement and unsustainable prices have introduced the venture to its knees.
In a video shared on X, John Patten, the DAO’s chief contributor, revealed that the group’s annual bills have surpassed $8 million, whereas solely $2.4 million in stablecoins stay in its treasury.
A number of points prompted the monetary troubles, together with excessive labor prices totaling $6.1 million per 12 months and infrastructure bills of $800,000. Moreover, the venture had given out grants denominated in U.S. {dollars} however paid in MAGIC, which turned more and more burdensome because the token’s worth dropped.
To right the scenario, the DAO proposed shutting down Treasure Chain, which consumes many of the infrastructure bills and is deemed too expensive to keep up. It would additionally look to get better $785,000 in idle funds from market maker Flowdesk to increase the treasury’s runway.
Based on Patten, the treasury would have been depleted by mid-2025 with out the drastic cuts. The venture will now deal with 4 core merchandise: the NFT market, which was hacked in 2022, Bridgeworld, Smolworld, and AI agent scaling.
Group and Market Response
Treasure DAO’s announcement sparked some outrage throughout social media, with neighborhood members questioning its transparency and management.
One Discord person expressed frustration, saying, “Only a few weeks in the past, it was all hype and optimism, and now this? What was being hidden behind the scenes?”
Others, like Intrepidus.eth, expressed broader disillusionment with crypto initiatives, lamenting, “Most of these guys don’t know the best way to run a bloody firm… actually uninterested in crypto and the hype.”
Some speculated whether or not the Treasure group had been dumping MAGIC forward of the information, additional eroding belief.
The token’s market efficiency has mirrored the continuing turmoil, dumping 18.3% within the final 24 hours. Its present worth of $0.08316 is nearly 99% beneath its all-time excessive of $6.32, achieved in February 2022.
The downturn is much more pronounced throughout longer timeframes, with a 41.6% drop prior to now week and a 53.7% plunge during the last 30 days. MAGIC can also be down 91.4% throughout one 12 months, reflecting a protracted lack of confidence.
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