The Treasure development team has officially announced the shutdown of its private blockchain, Treasure Chain, on May 30, 2025, following the community’s approval of the TIP-52 proposal. This decision marks a significant shift in the project’s strategy as it seeks to address financial challenges and refocus resources on core products with long-term sustainability.
The Shutdown Timeline
According to the roadmap published by Treasure DAO, the shutdown process will unfold in two phases:
All asset bridge operations to Treasure Chain have been suspended as of now. Users must withdraw MAGIC, ETH, SMOL to Ethereum and WOP Beacon NFT to Arbitrum before deadlines. The MAGIC-ETH LP migration to Uniswap is already complete. However, the SMOL-MAGIC liquidity transfer is still being managed by the team.
TIP-52 Proposal: Empowering the Development Team
The decision to shut down Treasure Chain followed the community’s passage of the TIP-52 emergency proposal, which temporarily empowered the development team to address critical issues.
Under this proposal, the team gains control over the entire Protocol-Owned Liquidity (PoL) fund, which includes more than 3.18 million MAGIC and 138 ETH. This authority allows them to proactively manage the closure of the chain’s technical infrastructure while minimizing unnecessary maintenance costs.
“TIP-52 is in effect until June 30, 2025, and during this time, development teams are allowed to implement necessary actions without community approval, as long as those actions are within the scope of the community’s initial approval.”
This temporary flexibility is unusual for a Decentralized Autonomous Organization (DAO), where major decisions typically require rigorous voting processes. However, given the increasingly dire financial situation, Treasure DAO recognized the need for swift action to ensure survival.
Financial Pressures and Strategic Realignment
Launched in December 2024, Treasure Chain was designed to serve the Treasure gaming ecosystem, including titles like Bridgeworld, Smolworld, and exclusive NFT collectibles. Built on Layer-2 ZKsync, the chain aimed to optimize transaction costs, increase processing speed, and enhance user experience compared to operating directly on Ethereum.
However, co-founder John Patten revealed that the project’s current budget can only sustain operations until the end of 2025 or early 2026 under the best-case scenario. With annual operating costs for Treasure Chain reaching $450,000, maintaining the chain has become financially unsustainable.
To address these challenges, Treasure DAO has decided to abandon its game publishing model and proprietary chain infrastructure. Instead, the project will focus on developing core products with higher revenue potential, including AI-related applications. This strategic pivot aims to ensure the long-term viability and growth of the Treasure ecosystem.
Implications for the Treasure Community
The shutdown of Treasure Chain represents both a challenge and an opportunity for the Treasure DAO community. The loss of a dedicated blockchain may affect parts of the gaming ecosystem. However, the decision supports the broader aim of promoting sustainable growth.
Treasure DAO aims to create new value propositions by reallocating resources to AI-driven solutions. These initiatives are designed to resonate with both users and investors. This transition underscores the importance of adaptability in the rapidly evolving Web3 landscape.
Final Thoughts
The shutdown of Treasure Chain highlights the financial realities faced by many blockchain projects in today’s competitive environment. By making the difficult decision to close its private chain, Treasure DAO demonstrates a commitment to long-term sustainability over short-term convenience.
For users, the priority now is to ensure all assets are withdrawn before the deadlines. For the project, the focus shifts to rebuilding and innovating in ways that align with the community’s vision for the future.
As Treasure DAO embarks on this new chapter, its ability to execute its revised strategy will determine whether it can reclaim its position as a leader in the Web3 gaming space.
