Treasure Chain Shutdown

Treasure DAO is winding down its ZKsync-based layer-2 Treasure Chain following the TIP-52 vote, which passed earlier this month, granting the team emergency powers to manage the closure. Holders must bridge out all ETH, MAGIC, SMOL, and NFTs by May 30, 2025, 11:00 AM PST. Bridging to L1 Ethereum for MAGIC/ETH and SMOL, and to Arbitrum for Beacon WOP NFTs, is already in progress. This shutdown aims to cut high operational costs (around $450,000 annually) and extend the DAO’s USDC runway through Fall 2026, refocusing efforts on product development [Treasure DAO X Post, 2025-05-06].

Recent News

Treasure DAO has faced financial strain in 2025. In April, the team executed deep cost-cutting, ending game publishing support and scaling back its L2 ambitions. A $100,000 USDC liquidation reserve fund was proposed to cover potential wind-down costs, reflecting cautious financial restructuring [Messari, 2025]. The chain’s closure, just five months after launch, underscores the challenges of sustaining layer-2 infrastructure in the gaming sector [Crypto.news, 2025-05-06].

Future Plans

Post-shutdown, Treasure DAO is pivoting toward AI and NFT utility, with plans for agent-owned wallets, automated trading, and multichain expansion. This strategic shift aims to streamline operations and foster growth in its ecosystem, moving away from blockchain gaming [Messari, 2025].

Onchain Data

Specific onchain metrics like transaction volume or wallet activity post-announcement are unavailable due to the chain’s wind-down phase. However, historical data showed declining MAGIC transaction volumes in 2024, hinting at reduced engagement [Medium, DeMan, 2024-01-26].

Community Sentiment

On X, reactions are mixed. Some users, like @0xKongy, sought clarity on NFT holdings, while others, like @CoreyEvensen, expressed uncertainty about MAGIC tokens. Treasure DAO’s responses have been proactive, guiding users on bridging assets, which has eased some concerns [Treasure DAO X Replies, 2025-05-06].

Risk Disclaimer

Bridging assets can involve network fees and timing risks—ensure you act before the deadline to avoid potential losses.