The decentralized video game ecosystem, Treasure DAO, is undergoing significant restructuring as part of a crucial survival strategy to extend its financial runway to at least February 2026. In a recent video statement, chief contributor John Patten emphasized the urgency of this transition, highlighting a need to streamline operations and focus on key projects to maintain the organization’s viability.
Patten reassumed a leadership role, underscoring the importance of community input in decision-making. He noted, “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.” This call for collaboration encapsulates the ethos of decentralized governance, pivotal to DAO operations.
In an effort to tackle the current financial challenges, Treasure DAO is implementing substantial cost-cutting measures to reduce its annual expenditure, which stands at approximately $8.3 million. As part of this initiative, 15 contributors have either departed or been laid off. Additionally, the DAO will be ceasing its game publishing support and discontinuing the Treasure Chain. This shift reflects the pressing need for sustainable financial practices in a landscape where resources are dwindling.
To further bolster its treasury, Patten proposed withdrawing an idle $785,000 from the market maker Flowdesk. This maneuver could potentially extend the DAO’s runway until February 2026 under optimistic conditions. He expressed concern over the current treasury status, which includes only $2.4 million left along with an ecosystem fund holding 22.3 million MAGIC tokens, valued at approximately $2.3 million. Patten warned that if the value of MAGIC declines, the DAO may face unsustainability between December and February.
Refocusing on Core Products
Beyond financial restructuring, Patten indicated that the DAO must concentrate its efforts on a streamlined product lineup. He proposed that the organization should officially commit to focusing on four primary products: the marketplace, Bridgeworld, Smolworld, and an AI agent scaling technology. This sharpened focus aims to enhance revenue generation and foster sustainable partnerships.
According to Patten, “The DAO should officially commit to a focused, streamlined approach of four products and four products only, the marketplace, Bridgeworld, Smolworld and AI agent, scaling technology.” He envisions Bridgeworld and Smolworld as pivotal case studies to demonstrate how other projects can leverage the MAGIC marketplace and the DAO’s AI framework.
Launched in 2021, Treasure DAO initially aimed to provide infrastructure and advisory services for Web3-based game publishers. However, the DAO’s business model has faced scrutiny, as it lacked scalability and has seen stagnation since the Arbitrum airdrop in March 2023.
Market performance has reflected these challenges, with the Treasure ecosystem token, MAGIC, experiencing a notable drop of 16.5% in the past 24 hours to $0.0872, according to CoinGecko. This decline is even more pronounced over the long term, with the token shedding 98% of its value since reaching an all-time high of $6.32 in February 2022.
As Treasure DAO navigates this critical juncture, the coming months will be vital in determining its future trajectory in the evolving landscape of decentralized gaming.
