Treasure DAO Faces Crisis, Cuts 15 Jobs, Halts Operations

Treasure DAO, a prominent player in the blockchain gaming ecosystem, has announced that it is facing a severe financial crisis. The organization has disclosed that its annual operating expenses amount to 8.3 million USD, while its current treasury holds only 2.4 million USD. This financial strain has led to a restructuring plan, which includes the termination of game operations and the discontinuation of Treasure Chain.

Chief Contributor John has reassumed a leadership role and revealed that the team once consisted of 40 people, with an annual personnel cost of 6.1 million USD. Infrastructure costs amounted to 3 million USD, including a fixed annual cost of 450,000 USD for Treasure Chain. Due to the financial pressure, the DAO has laid off 15 employees and decided to terminate game issuance support and Treasure Chain, while assisting partners in migrating to other blockchains.

To extend the funding runway, John proposed withdrawing idle funds of 785,000 USD from the liquidity provider Flowdesk. If approved, the stablecoin balance will increase to 3.2 million USD, allowing operations to continue until February 2026. Additionally, the ecosystem fund holds 22.3 million MAGIC tokens, valued at 2.3 million USD. However, if the MAGIC price experiences a sharp decline, the DAO may face challenges in sustaining operations between December of this year and February next year.

Future strategies will focus on four key products: Market, Bridgeworld, Smolworld, and AI Agent Expansion Technology. The goal is to showcase the application potential of MAGIC through Smols and Bridgeworld, and to develop the Neurochimp agent to enhance market competitiveness. Community conference calls and governance proposals are forthcoming, including retiring Treasure Chain and adjusting market positioning, with the aim of reversing the current decline through streamlined operations.