Blockchain gaming ecosystem Treasure DAO has announced a drastic restructuring, closing down its game publishing operations and Layer-2 network Treasure Chain due to severe financial strain.
The news sent its native token, Treasure (MAGIC), plunging 18% in 24 hours, worsening a months-long downtrend.
How Treasure DAO Got Here
Treasure DAO gained early traction as a decentralized gaming hub, using its MAGIC token to fund game development and partnerships. However, financial mismanagement and unsustainable costs have brought the project to its knees.
In a video shared on X, John Patten, the DAO’s chief contributor, revealed that the organization’s annual expenses have surpassed $8 million, while only $2.4 million in stablecoins remain in its treasury.
Several issues caused the financial troubles, including high labor costs totaling $6.1 million per year and infrastructure expenses of $800,000. Furthermore, the project had given out grants denominated in U.S. dollars but paid in MAGIC
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