Treasuredao will close his treasury based on ZKSync on 30 May, almost five months after announcing urgent cost -saving measures and securing temporary emergency powers.
Treasuredao pulls the plug to the treasury, its own network built on the Layer-2-scale solution of ZKSync, by 30 May after TIP-52 has expired, so that the emergency aid options of the core team handle the closure without stopping for more votes.
Treasure chain wind downwards
After the successful ratification of TIP-52, the treasury will be closed on 30 May 2025. Holders must bridge all ETH, Magic, Smol and NFT holdings at the end of May.
Additional updates, timelines and next steps are described below
– Treasure (@treasure_dao) 6 May 2025
In an X-Thread on May 6, the Treasuredao-Team encouraged users to bridge all their assets and non-fungal tokens by the end of May. The Wind-Down is part of a wider Pivot to reduce costs and to concentrate on product development.
“Bridging to treasure chain has been stopped,” said the team, and noted that “Magic-eth has migrated to L1 Ethereum and is now tradable on Uniswap”, while “Smol-Magic liquidity migration to L1 is underway.” Despite the closing of the chain, the team reassured that it is in a strong position to continue its activities as its USDC start track “extended until after autumn 2026”.
“Treasure is in a strong position, with our USDC landing track extended to the autumn of 2026-exclusive a recovering magical treasury. The wind chain will speed up our product development and reduce operational costs, position our position for the next phase of growth.”
Treasuredao
Even with closing the mainnet, the team did not kill the decision as giving up, but as ‘a positive move for the org’. The team also added that “measuring the chain is presented as a necessity, no choice.”
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Yet the shutdown comes with hard financial truths. In internal updates, co-founder John Patten pointed out that the fire speed of the DAO had not become sustainable, with the runway possibly drying up at the end of 2025. Costs of the treasury chain costs of around $ 450,000 per year money that the treasury could no longer justify, especially with ZKSSYNC subsidies that slowly unlock over time.
To facilitate the transition, the proposal lets the team manage around 3.18 million magic and 138 ETH in DAO ownership liquidity. As Treasuredao put it, the closure is an “emergency measure that reflects the current extraordinary circumstances, not a permanent change of Dao Governance principles.”
Treasure was one of the early builders of Arbitrum before launching his own chain on ZKSync. At its peak it was even good for more than 95% of all gaming and NFT transactions on Arbitrum and has generated more than $ 260 million in market volume since the launch, according to data from Nansen.
Read more: Arbitrum’s $ ARB stimuli could not keep users, says Pink Brains
Credit : cryptonews.net
