Treasure DAO, once focused on gaming, is undergoing significant operational cuts due to severe financial difficulties, marking a major shift in its business strategy.
Treasure DAO has shut down its gaming publishing platform and entire blockchain, accompanied by a round of layoffs that have seen at least 15 staff members leave or be laid off, including several key leaders. The organization’s annual burn was previously substantial, with $8.3 million in “general treasury usage” and $816,000 in “Bridgeworld” usage. A financial transparency report revealed that the DAO incurred over $11.3 million in quarterly expenses in Q4 last year, with a stark contrast of just $40,181 in quarterly revenue.
The DAO’s financial struggles are further highlighted by its dwindling treasury. As of March 2025, Treasure reported having $2.4 million in stablecoins and 22.3 million MAGIC tokens, valued around $1.56 million at the time. The team is attempting to withdraw approximately $786,000 in stablecoins, Bitcoin, and Ethereum from market maker Flowdesk to bolster its funds, potentially increasing its available funds to $4.746 million. With a reduced monthly expenditure of roughly $393,000, Treasure estimates it can remain operational for another 10 to 12 months, assuming the price of MAGIC remains stable.
The value of MAGIC, Treasure’s main token, has dropped substantially from about $0.70 to $0.07 since mid-2023, significantly impacting the DAO’s treasury, as over half was held in MAGIC. This decline, coupled with mismanagement, has precipitated the current financial crisis. The DAO once had significant financial resources, with $74 million in crypto holdings reported in mid-2023 and $6.5 million in funding from two seed rounds in 2021 and 2022.
Treasure DAO’s game publishing and distribution plans are officially cancelled, and partners are being assisted in unwinding integrations. The DAO is pivoting away from gaming, aiming to focus future efforts on artificial intelligence (AI) technologies. Some partner games, such as The Beacon, are leaving the Treasure ecosystem due to misalignment with the DAO’s new direction. The Beacon game team stated that Treasure’s current vision “no longer aligns with the goals we have for our game and ecosystem.”
The decision to exit game publishing was not a strategic choice but a matter of organizational survival amid worsening financial conditions. Treasure cofounder John Patten acknowledged past missteps, stating, “We spent too long trying to win a prize not even worth fighting for.” Notably, co-founder Karel Vuong has left the team, and it has become apparent that the full extent of financial issues was not publicly known until recently, despite rumors circulating within the community since October.
Treasure’s significant financial struggles and operational cuts mark a substantial shift in its business strategy, as the organization attempts to navigate its current financial difficulties and pivot towards new areas of focus.