Treasure Chain Shuts Down on May 30th

Following the approval of TIP-52, Treasure DAO has officially announced that the Treasure Chain is shutting down on May 30th.

What Should Holders on Treasure Chain Do Before May 30th?

In the lead up to the shutdown date, holders on Treasure Chain should bridge all their token and NFT holdings before the end of this month, as well as remove and migrate any LP positions.

All MAGIC and ETH holders on this chain should use the following bridge to move their holdings to the Ethereum network: bridge.treasure.lol. The same bridge can be used by Beacon WOP NFT owners to migrate over to Arbitrum.

In order for SMOL holders to bridge to Ethereum, they will need to use the Hyperlane permissionless interoperability protocol: usenexus.org.

Progress Updates on Treasure Chain Wind-Down

While holders can bridge their assets from Treasure Chain to Ethereum and Arbitrum, the ability to bridge to Treasure Chain has now been discounted as part of the network’s wind-down process. According to a part of the X announcement thread, the team is also “working swiftly” to make it easier to migrate liquidity and NFTs off their chain.

Progress updates further reveal that MAGIC-ETH has been successfully migrated to L1, enabling trading on Ethereum via Uniswap. As for SMOL-MAGIC liquidity migration to L1, that currently seems to still be in the works. If you need more MAGIC to cover gas fees, it is said that you can still use South Korean centralized exchanges Upbit and Bithumb to get the token, and that the team is looking into potentially providing additional options.

When it comes to the wind-down timeline, the intended time for the Topaz testnet shutdown is May 9th at 11 AM PST, while the planned time for closing down the mainnet is May 30th at 11 AM PST. If you have any assets on the Treasure Chain, make sure to bridge your holdings as soon as possible before the mainnet completely shuts down.

What Does TIP-52 Propose?

TIP-52 proposes the wind-down of the Treasure Chain and temporary authority for the core contributor team in order for them to commence the shutdown process and be able to swiftly make decisions regarding “key assets and infrastructure” in order for the DAO to survive and successfully strategically pivot to AI agent technology.

The team’s temporary unilateral authority is set to expire at the end of Q2 2025, or June 30th, but until then, the core contributors will be able to manage the primary MAGIC-ETH Protocol-Owned Liquidity (PoL) pool and complete the process of shutting down Treasure Chain infrastructure that’s been running on ZKsync, which is where the Layer 2 gaming chain launched in December 2024. Core contributors have been authorized to take actions such as bridging assets, migrating liquidity, closing down services such as chain validators, and communicating the process without needing to wait on separate governance votes for each decision.

The reason for this proposal is said to come as a result of the “serious financial challenges” plaguing TreasureDAO. If it wasn’t approved, their current reduced runway would supposedly last until December 2025 or February 2026. As a result of that and a “high historical burn rate,” the team is forced to undertake significant measures to ensure survival by adopting a new operational model that removes the chain and game publishing stack to reduce costs and become more agile, as those two have shown to be “financially unsustainable.”

The proposal was created on April 22nd and successfully passed on April 25th. Full details can be found on the official proposal page. With this major pivot, Treasure DAO can extend their runway into 2026 by focusing on a new roadmap featuring an AI agent marketplace, Smolworld, and Canopy.

Following the eventful news, Treasure DAO launched the AI Agent Creator for NFTs like Bored Apes and Pudgy Penguins.