TreasureDAO Shuts Down Treasure Chain Mainnet Just Five Months After Launch

The decision follows the recent approval of Treasure Improvement Proposal 52 (TIP-52), which granted the core TreasureDAO team emergency powers to manage the shutdown without requiring further community votes. This move is part of a broader strategy to reduce operational costs and refocus the project on core product development.

In a statement shared on X (formerly Twitter) on May 6, the TreasureDAO team urged users to bridge out all assets and NFTs from Treasure Chain before the shutdown deadline. The team confirmed that bridging to Treasure Chain has already been discontinued. They also noted that the MAGIC-ETH token pair has been migrated back to Ethereum Layer 1 and is now tradable on Uniswap, with liquidity migration for SMOL-MAGIC currently underway.

Co-founder John Patten revealed that the DAO’s burn rate had become unsustainable, with the treasury’s runway expected to run out by late 2025. Maintaining Treasure Chain costs approximately $450,000 annually, a figure the DAO could no longer justify given the slow unlocking of ZKsync grants and other financial pressures.

Despite this, they possess a strong financial position with a USDC runway through Fall 2026. TreasureDAO was a significant innovator on Arbitrum, once accounting for over 95% of its gaming and NFT transactions and generating over $260 million in marketplace volume. The shutdown marks a significant pivot for TreasureDAO, signalling a shift from operating its blockchain to focusing on sustainable growth and product innovation within the evolving DeFi and gaming landscape.

Notably, crypto enthusiasts have been keen on the launch of TermMax Mainnet, which offers features such as fixed-rate borrowing and lending and one-click looping, aiming for a more efficient and flexible DeFi environment.

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