Treasure DAO Shuts Gaming Platform, Faces $11.3M Quarterly Loss

Treasure DAO, once a prominent player in the gaming sector, has made significant cuts in a last-ditch effort to stay afloat. The decentralized autonomous organization (DAO) has shut down its gaming publishing platform and the entire blockchain, accompanied by a round of layoffs. Several key leaders have also recently departed from the organization.

Financial troubles have been a significant factor in these decisions. Treasure cofounder John Patten acknowledged the financial strain, stating, “We’re good. We have runway. Leaner team now.” However, a financial transparency report from the DAO revealed over $11.3 million in quarterly expenses in the fourth quarter of last year, with only $40,000 in quarterly revenue. This stark contrast highlights the severe financial challenges Treasure DAO is facing.

Before the layoffs, Treasure’s annual burn rate was substantial, with $8.3 million in “general treasury usage” and $816,000 in “Bridgeworld” usage. The DAO had funds to last until July 2025 in their previous state, but now they have $2.4 million in stablecoin runway, along with 22.3 million MAGIC tokens, which are worth approximately $1.56 million at the time of writing. The team is also attempting to withdraw about $786,000 in stablecoins, BTC, and ETH from market maker Flowdesk to add an additional two months of runway.

If Treasure is able to withdraw and swap their MAGIC tokens at current prices, they would have a total of $4.746 million. Assuming they can operate on roughly $393,000 a month, Treasure could continue for about 10 to 12 months. However, this projection is contingent on the price of MAGIC not falling further before they sell it or swap their MAGIC into stablecoins.

Treasure DAO’s financial struggles have led to a significant reduction in staff. At one point, more than 40 people were working for Treasure, but at least 15 have been laid off or left the organization. The DAO has also canceled its gaming distribution plans and is pivoting to AI. Patten explained, “We are aggressively sunsetting the entire game publishing stack and helping partners unwind their integrations. The DAO had no option but to eliminate publishing support as quickly as possible.”

Some games have already begun leaving Treasure as a result of these changes. The Beacon game team, for instance, stated that Treasure’s current vision “no longer aligns with the goals we have for our game and ecosystem. For this and other reasons, we have decided to fully depart from their ecosystem.” Patten emphasized that the pivot away from game publishing was not a choice but a matter of survival.

Notably, during a February interview, there was no mention of Treasure’s financial troubles. Since then, cofounder Karel Vuong has left the organization. Rumors suggest that Treasure’s financial issues may have been obvious to some community members since October or even earlier. Vuong had previously expressed a focus on crypto-forward indie games, but now gaming is no longer a part of Treasure’s future plans.