Treasure DAO Announces Major Pivot to Extend Runway Until February 2026

Treasure DAO, a decentralized video game ecosystem, is undergoing a critical restructuring to extend its financial runway until at least February 2026 as a survival measure.

In an April 2 video posted on X (formerly Twitter), Treasure DAO's chief contributor John Patten announced that he has resumed a leadership role. He is proposing a strategic plan to the DAO aimed at streamlining operations, cutting costs, and focusing on core projects.

“I will introduce this after all of you provide your opinions at this time. I have my own thoughts, but we must make this decision as a community through long deliberation. The best ideas need to rise to the surface,” Patten stated.

Treasure DAO Implements Cost-Cutting Measures

To reduce the DAO’s annual burn rate of $8.3 million, Patten confirmed that 15 contributors have either left or been laid off. Additionally, game publishing support and the Treasure Chain will be terminated as part of the cost-cutting process.

Further financial measures include withdrawing an idle $785,000 from the market maker Flowdesk to strengthen the DAO’s treasury.

With the current runway, Treasure DAO's stablecoins are projected to last until December 2025. However, if the Flowdesk withdrawal is approved, the DAO’s runway could extend until February 2026 under an optimistic scenario.

The DAO’s treasury currently holds $2.4 million, while the ecosystem fund contains 22.3 million MAGIC, valued at $2.3 million. Patten warned that if MAGIC depreciates further, the DAO could become unsustainable between December and February.

Treasure DAO Refocuses on Four Key Products

Patten emphasized that Treasure DAO must now focus on a limited number of core products and ensure that future partnerships are centered around revenue generation. Users will need to generate value through token utility.

“The DAO should officially commit to a focused, streamlined approach of four products only: the Marketplace, Bridgeworld, Smolworld, and AI Agent scaling technology,” Patten explained.

“That’s all that Treasure should be through 2025. Bridgeworld and Smolworld will serve as use cases to showcase how other projects utilize the MAGIC Marketplace and our AI framework to scale operations,” he added.

Treasure DAO, founded in 2021, was designed to provide game publishers with infrastructure and advisory services for launching Web3-based games. However, Patten admitted that the project lacked a scalable business model and has seen stagnant growth since the Arbitrum airdrop in March 2023.

The Treasure ecosystem token MAGIC has suffered a 16.5% drop in the last 24 hours, currently trading at $0.0872, according to CoinGecko. The token has lost 98% of its value since reaching its all-time high of $6.32 on February 19, 2022.

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