TreasureDAO is building a decentralized gaming metaverse ecosystem called Treasure on Arbitrum (one of Ethereum’s layer-two networks), which integrates non-fungible tokens (NFTs) and decentralized finance (DeFi). Layer-two products benefit from Ethereum’s security by processing part of the transaction off-chain and returning the results to the network; this reduces gas fees and increases transaction speed. Treasure is a community-driven initiative that began with a fair launch. Treasure’s team comprises people from the community inspired by Treasure’s open-source approach.
TreasureDAO takes a venture studio approach to onboard games by developing new products and ideas and recruiting a team to build companies around those ideas. However, the TreasureDAO community decides which games to add to the ecosystem. In Treasure’s metaverses, $MAGIC(ERC20) is the one token to rule them all. MAGIC will be the reserve currency for all TreasureDAO projects. MAGIC can be used to buy NFTs in Treasure’s NFT marketplace and bootstrapped to any metaverse inside the Treasure ecosystem.
The DAO collaborates with its community to develop ecosystem lore and quests, rewarding contributors with MAGIC. These incentives boost MAGIC’s network impact by linking the whole ecosystem and pushing new communities to build on top of Treasure.
The community will decide how MAGIC is utilized in each project, transforming it into a naturally occurring resource in their metaverse, similar to gold in ours. Treasure effectively supplies the economic building blocks for a metaverse, and developers will primarily be concerned with adding value to their projects by expanding the use cases for MAGIC.
TreasureDAO
Voting rights in the DAO are reserved for community members that provide liquidity through staking. The longer the lock period, the higher the weight of the vote, limiting the potential of mercenary farmers to influence the DAO’s development with short-term governance.
Treasure’s mission will be realized with the support of the “Treasure Council,” a group of committed DAO members. The TreasureDAO can vote on a range of issues, including which projects to onboard, how $MAGIC is distributed, and revenue-sharing agreements for the Treasure marketplace. The marketplace provides the DAO with additional revenue, funding the Treasure ecosystem’s expansion. Treasures NFT and Legions NFT have a royalty fee of 5%, which goes to the DAOs treasury. The TreasureDAO gets at least 2.5% of the revenue, and the remaining goes to the creators.
The DAO plans to launch a decentralized OpenSea competitor in 2022 called Trove that transacts in ETH and is not affiliated with MAGIC or Bridgeworld. This marketplace aims to generate additional revenue for the DAO to support upcoming projects and the value of MAGIC. It utilizes the popularity of layer one networks while driving traffic to Arbitrum’s network and their growing landscape of metaverses.
TreasureDAO approved a partnership with 1kx in December 2021 (Co-Founder of Axie). The purpose of 1kx was to establish a network of strategic investors to assist the DAO in diversifying its treasury and rapidly expanding the initiative.
Tokenomics
The total supply of MAGICs is 350,000,000, with 28,510,571 currently in circulation, a Market Cap of $151 million, and a Total Value Locked of $294 million. Treasure’s environment is intended to make MAGIC rare; production declines as the ecosystem matures. MAGIC’s mining rewards half every year rather than every four years like Bitcoin. Liquidity provider incentives are matched with this trend to ensure ecosystem balance and long-term sustainability.
Smol Brains and Smol Bodies are active metaverse partnerships that use the MAGIC tokens. Eventually, this growing metaverse will include Life, Imperium, Ether Orcs, and Olympus Odyssey. Treasure is working hard to increase the number of metaverses that use MAGIC.
Bridgeworld is the core metaverse in Treasure, where MAGIC is produced and gathered. Bridgeworld uses two other NFTs, Treasures (ERC115) and Legions. Treasures NFT are resources found in the Bridgeworld metaverse. Players can use Treasures to make products or burn them for unique effects. Up to twenty Treasures can be staked per wallet; it acts as a multiplier for staked MAGIC, and the output is determined by its rarity and generation.
Legions NFT are the player avatars in Bridgeworld. Only three Legions can be staked per wallet in Bridgeworld. They also function as a multiplier on staked MAGIC. Legions can be upgraded with a staked combination of MAGIC and Treasures.
MAGIC is the connecting fiber for Treasures and Legions, and it powers everything in Bridgeworld and future metaverses. Depending on how much MAGIC is staked, Treasures resource output can vary. TreasureDAO uses MAGIC production to create new projects while sustaining existing ones.
Risks
The TreasureDAO NFT marketplace was hacked on March 3, allowing hackers to buy 154 NFTs without using MAGIC tokens. The Treasure team responded fast to compensate affected users. The most affected collection was Smol Brains, the platform’s top-earning project. The team quickly disabled the smart contract that had allowed the vulnerability to exist. The NFTs were worth about 426.5k in MAGIC, valued at $1.4 million. Thanks to a smart contract logic error, hackers acquired previously listed NFTs for 0 MAGIC. According to the Treasure team, all stolen NFTs were returned by March 6. TreasureDAO announced on their Discord that they are in communication with an auditing firm to ensure their contracts are safe and this would not happen again.
Conclusion
Treasure has a very active community, with over 28k members in their Discord group. The community has rallied around the layer-two marketplace, with 13.4k members and $228.3 million worth of MAGIC transacted on the platform. The marketplace trade activity is estimated at $81 million in the last 30 days, with over 468k sales.
From fair launch, TreasureNFT’s floor price for Legion genesis is $22,960, Treasures $13, and their star project Smol Brains $5,734. To play Bridgeworld, the core metaverse in Treasure, the barrier of entry could be high for some players, slowing adoption. However, Treasure aims to become the Nintendo of metaverses, with every new project added to their roster; they are inching closer to this goal.
