The decentralized gaming ecosystem, Treasure DAO, is undergoing a restructuring to ensure its financial viability, aiming to extend its operational funds to at least February 2026.
John Patten, a key contributor to Treasure DAO, announced in a video shared on April 2 that he has taken on a leadership role again. He stated he plans to present to the DAO a strategy to streamline its operations, cut unnecessary expenses, and focus on a select number of critical projects.
“I will bring this forward after hearing your feedback. I have my ideas, but it’s crucial for us to reach a consensus as a community through thoughtful discussion. We need to elevate the best concepts,” he expressed.
As part of the initiative to reduce the annual expenditure of $8.3 million, Patten noted that 15 contributors have exited or been let go, and the game publishing support alongside the treasure chain will be discontinued.
Additionally, he suggested withdrawing $785,000 from the market maker Flowdesk to bolster the DAO’s treasury.
According to Patten, the existing funds will be enough “to last until about December” if no action is taken, but should the DAO agree to the withdrawal from Flowdesk, the financial runway could be extended to February 2026 in “an optimistic situation.”
The current treasury stands at $2.4 million, while the ecosystem fund contains 22.3 million MAGIC, valued at $2.3 million. Patten warned that if “Magic drops,” the DAO’s viability could be at risk between December and February.
Treasure DAO plans to refine focus to four products
Patten emphasized the need for the DAO to concentrate its efforts on a limited number of core products, with future partnerships centered on revenue generation that encourage value creation through token utilization.
“The DAO should formally commit to a streamlined strategy focused on just four products: the marketplace, Bridgeworld, Smolworld, and AI agent scaling technology,” he indicated.
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“These will be the only initiatives for Treasure through 2025. Bridgeworld and Smolworld will serve as case studies on how other projects can leverage the magic marketplace and our AI infrastructure to operate numerous agents simultaneously.”
Treasure DAO, established in 2021, initially provided game publishers with access to infrastructure and advisory services to facilitate the launch of Web3 games.
However, Patten asserted that the organization lacked a scalable business model and has not seen growth since the Arbitrum airdrop in March 2023.
The ecosystem token, MAGIC, has declined by 16.5% to $0.0872 in the last 24 hours. Overall, it has lost 98% of its value from an all-time high of $6.32 reached on February 19, 2022.
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