Key Takeaways
- TreasureDAO has announced it will officially shut down Treasure Chain on May 30, 2025.
- The MAGIC token is trading down 5% at $0.16 and has a market cap of just over $51 million.
- The Treasure team is pivoting its focus to its core tech, NFT marketplace, and AI.
Treasure DAO has decided to shut down its mainnet as its network operation costs far outweigh its revenue.
Now, TreasureDAO claims it will shift its focus towards its core tech offerings and AI agent-integrated non-fungible tokens (NFTs).
Treasure Chain Down
Amid ongoing financial woes, the TreasureDAO team has urged users to bridge out all of their assets from its gaming-centric L2, the Treasure Chain, following a community vote.
The announcement comes just two months after Treasure released its Q4 2024 financial transparency report, which revealed low revenues and troublingly high expenses.
In April 2025, the DAO’s chief contributor and co-founder, John Patten, revealed that its expenses had surpassed $8 million and that just $2.4 million worth of stablecoins were left in the treasury.
The DAO’s unsustainable burn rate had left the treasury with around $1.56 million worth of MAGIC tokens.
This was projected to reach zero by mid-2025. Furthermore, maintaining the chain costs around $450,000 a year.
Not all is lost, however, as the team explains it’s still in a “strong position” thanks to its USDC runway being extended until Q3/Q4 2026.
This, it says, will give it room to “accelerate” product development and reduce costs, setting itself up for “the next stage of growth.”
Next Stages
Treasure Chain ambitiously set out to create a Web3 gaming network that would support “infinite games” through its Layer-3 Infinity Chains. It began on Arbitrum, but migrated to ZKsync in December 2024.
It was home to titles such as dungeon crawler The Beacon, NFT trading card game Kaiju Cards, and even the successful Mighty Action Heroes, which will now most likely be required to migrate to Arbitrum directly, or to another Layer-2 solution.
This also marks the end of third-party game funding and publishing on the network, which certainly contributed to the DAO’s high burn rate.
For now, TreasureDAO will pivot its focus to its NFT projects and marketplace. This includes Bridgeworld, which serves as a foundational component to its NFT offerings.
The DAO will also focus on AI via SmolWorld, a newer NFT-based character project that integrates virtual AI companions.
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Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
