August 2025 - Treasure Runway Update
Following the unlocking of the ecofund and a significant reduction in operating costs, Treasure’s annual burn across USDC and $MAGIC has dropped from $11M to $3.4M, with a further decrease to $2.9M projected by October 2025 a 74% reduction. These improvements, alongside a strengthening market environment, have placed the DAO in a stronger financial position heading into the next phases of its growth.
As outlined in prior forum discussions, the Treasure core team remains committed to delivering clear, transparent, and frequent updates on the DAO’s treasury and financial runway. While the quarterly Transparency Report has provided important insights, we recognize that the current cadence falls short of community expectations for more timely information. In response, we are transitioning to a monthly update schedule to ensure greater visibility and alignment with community needs.
Treasure’s treasury is composed of both stable and volatile assets, each serving a distinct role in supporting the organization’s operations. To provide stakeholders with a transparent and realistic assessment of financial sustainability, we present separate runway forecasts for:
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USDC and fiat-equivalents, which offer stable and immediately liquid funding for predictable, ongoing expenses.
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MAGIC, which, while a valuable part of our treasury, is subject to market volatility and strategic constraints on liquidation.
By distinguishing between these two categories, we ensure that runway calculations are grounded in both operational certainty and market-aware flexibility, offering a more accurate, scenario-driven picture of Treasure’s financial health.
Spending projections are based on forecasted expenditure, giving a forward-looking view of Treasure’s financial position. This approach allows us to present the most accurate picture of organizational sustainability and long-term viability.
Stablecoin Runway
1. Included Treasury Holdings
The USDC balance includes all liquid stablecoin assets that are intended for operational expenditure, such as contributor compensation, infrastructure costs, and third-party services. Balances are provided at the closing of 6th August 2025.
Included Wallets:
| Wallet | Asset | Balance ($) |
|---|---|---|
| L1 Ecofund | USDC | 948,450 |
| L1 Operations Account | USDC | 103,242 |
| L1 Treasury | USDC | 10,902 |
| Brex USD Account | USD | 694,948 |
| Total | USDC + USD | 1,757,542 |
2. Forecasted USDC Expenditures
The following expenditures are currently funded in USDC. These forecasts are based on expected monthly costs.
| Expense Category | Aug 2025 | Sep 2025 | Oct 2025 onwards | Notes |
|---|---|---|---|---|
| Payroll - Treasure Technology Foundation | $7,438 | $7,438 | $7,438 | Contributor Headcount = 8 |
| Payroll - Game Builders Services | $193,244 | $186,994 | $159,494 | Aug = 18 contributors, Sep = 17, Oct = 15 |
| Tooling costs | $12,854 | $12,854 | $12,854 | Infrastructure and operational software & subscriptions |
| Market Maker Fees | $12,500 | $12,500 | $12,500 | Flowdesk retainer |
| Marketing Fees | $3,000 | $3,000 | $3,000 | |
| Legal Expenses | $5,000 | $5,000 | $5,000 | |
| Accounting & Consulting Expenses | $10,950 | $10,950 | $10,950 | |
| Event costs | $2,000 | $2,000 | $2,000 | |
| Total | $246,986 | $240,736 | $213,236 |
This brings the forecasted expenditure in the month of August to $246,986 with it reducing to $240,736 in September and then finally a reduction to $213,236 from October onwards.
3. Stablecoin Runway
The formula used is:
Stablecoin Runway (months) = Total Stablecoin Holdings / Forecast Monthly Stablecoin Expenditure
Runway = 8 months lasting until April 2026
While the graph below currently shows a 7 month stablecoin runway starting from August 2025, we have projected an 8 month runway lasting until April 2026. This extension accounts for anticipated cost reductions beginning in September and continuing through October, particularly due to a decrease in forecasted payroll expenditure.
Treasure also increased its liquidity support on centralised exchanges using stablecoins to put the treasury to work to generate fees. If these funds are included in operational runway calculations, stablecoin runway increases to 12 months till August 2026, but this involves counterparty risk, as is the case with any productive application of assets.
MAGIC Runway
1. Included Treasury Holdings
Only MAGIC holdings that are not explicitly earmarked for long-term initiatives or obligations are included in this forecast. This excludes wallets such as the Contributor Wallet, which has been allocated for token vesting. The estimated balance in $ is calculated based on $MAGIC closing price as of 6th of August 2025.
Included Wallets:
| Wallet | Balance (MAGIC) | Estimated Balance ($) |
|---|---|---|
| L2 Marketplace | 52,178 | 11,270 |
| L1 Operations | 93,901 | 20,283 |
| L1 Treasury | 13,245,335 | 2,860,992 |
| Total | 13,391,414 | 2,892,545 |
2. Forecasted MAGIC Expenditures
The following expenditures are currently funded in MAGIC. These forecasts are based on expected monthly costs.
| Expense Category | Monthly Forecast ($MAGIC) | Notes |
|---|---|---|
| Payroll - Treasure Technology Foundation | 64,578 | |
| Accounting & Consulting Expenses | 41,667 | |
| Total | 106,254 |
3. MAGIC Runway
The formula used is:
MAGIC Runway (months) = Total non-earmarked MAGIC Holdings / Forecast Monthly MAGIC Expenditure
Runway = 126 months lasting until February 2036
