Treasure DAO restructures to extend its financial runway

Treasure DAO has announced restructuring efforts to address financial difficulties and extend its operational runway to February 2026.

Chief contributor John Patten resumed leadership on April 2, proposing measures to streamline operations, reduce costs, and focus on core projects.

Patten revealed that the DAO’s annual burn rate stands at $8.3 million, while its treasury holds only $2.4 million in stablecoins, enough to sustain operations until December 2025.

To extend this timeline, Patten proposed withdrawing $785,000 in idle funds from market maker Flowdesk, which could increase the stablecoin balance to $3.2 million under optimistic projections.

Additionally, the ecosystem fund holds 22.3 million MAGIC (CRYPTO:MAGIC) tokens valued at $2.3 million, though their declining price poses risks to sustainability.

As part of cost-cutting measures, Treasure DAO has laid off 15 contributors and terminated game publishing support and its Treasure Chain operations.

The organisation plans to assist partners in migrating to other chains while focusing on four key products: the marketplace, Bridgeworld, Smolworld, and AI agent scaling technology.

Patten emphasised that future partnerships will prioritise revenue generation through token use and value creation for the DAO.

Treasure DAO was launched in 2021 to provide infrastructure and advisory services for Web3-based game publishers but has struggled with scalability and growth since the Arbitrum (CRYPTO:ARB) airdrop in March 2023.

The MAGIC token has lost 98% of its value since reaching an all-time high of $6.32 in February 2022, further complicating the DAO’s financial outlook.

“The best ideas need to rise to the surface,” stated Patten, calling on the community for deliberation and input on the restructuring plan.

He expressed optimism that these changes could stabilise Treasure DAO’s finances and refocus its efforts on sustainable growth through 2025.