Summary
This proposal seeks DAO approval to:
- Reclaim surplus assets from Flowdesk, Treasure DAO’s market making partner, as part of an operational capital adjustment and shoring up stablecoin runway.
- Convert the ETH and BTC currently held in the market making account into stablecoins prior to being returned to the DAO.
Background
Treasure DAO initially engaged Flowdesk via TIP-17 to provide market making support for MAGIC and related pairs across centralized exchanges. The scope of this partnership was later expanded under TIP-21 to improve liquidity across additional markets.
We reached out to Flowdesk and as of March 2025, they have reviewed its capital needs and determined that a smaller allocation of funds is sufficient to support operations across the eight active trading pairs. This opens up the opportunity to reclaim a significant portion of the previously allocated assets.
Capital Adjustment Overview
To remain with Flowdesk (post-adjustment):
- 1,000,000 MAGIC
- 150,000 USDT
- 100,000 USDC
- 1 BTC
To be returned to Treasure DAO (after stablecoin conversion):
- 560,000 MAGIC
- 270,000 USDT
- 170,000 USDC
- ~95 ETH → converted to stablecoins ~ $172k
- ~2 BTC → converted to stablecoins ~ $167k
This should provide $779k in additional stablecoin funding to further operational runway (depending on market price at time of diversification)
Note: Flowdesk will convert ETH and BTC to USDC/USDT prior to returning funds to the DAO. Execution and conversion rate transparency will be provided.
Motivation
The primary motivation is to increase the DAO’s stablecoin reserves and extend its operational runway, ensuring the sustainability of core functions and the broader Treasure ecosystem.
This proposal supports:
Strengthening operational runway and financial flexibility- Reducing exposure to market volatility
- Reallocating idle capital into more productive, stable assets
Proposal Scope
The DAO authorizes the following:
- Reclaim Excess Funds from Flowdesk: Return of:
- 560,000 MAGIC
- 270,000 USDT
- 170,000 USDC
- Additional Stablecoins (USDC/USDT) converted from ~95 ETH and ~2 BTC
-
Stablecoin Conversion by Flowdesk: ETH and BTC will be converted to stablecoins prior to return. This simplifies operations for the DAO and reduces volatility risk.
-
Fund Delivery to DAO Custody: All returned funds will be sent to designated, multisig-controlled DAO treasury wallets.
Execution Plan
- DAO Approval: Proposal is approved via Snapshot vote.
- Wallet Coordination: Treasury team shares secure multisig addresses with Flowdesk.
- Stablecoin Conversion: Flowdesk handles conversion of ETH and BTC into stablecoins at time of return.
- Fund Settlement: Flowdesk returns all assets to DAO custody.
- Transparency & Reporting: Treasury team publishes:
- Transaction hashes
- Conversion details
- Final amount breakdown
Conclusion
This proposal brings unused funds back to the DAO, converts volatile assets to stablecoins, and strengthens the DAO’s ability to fund operations, contributors, and ecosystem continuation.
This is done with guidance from flowdesk that trading will not be impacted as a result.
Voting Options
- Yes – Approve the return of excess funds from Flowdesk, including conversion of ETH/BTC into stablecoins prior to transfer.
No – Do not proceed with the proposed fund retrieval and conversion.
Total Converted to USDC: $629,155.00
2. Direct Return (No Conversion Required)
3. MAGIC Tokens Returned
Summary of Funds Reclaimed