TIP-52: Temporary Authority for PoL Management and Chain Wind-Down

Proposals
1

Summary

In light of the critical financial situation outlined by lead contributor John Patten, this proposal seeks authority for the core contributor team to act swiftly regarding key assets and infrastructure to ensure the DAO’s survival and facilitate the necessary strategic pivot. Specifically, this TIP proposes to:

  • Grant the core contributor team unilateral authority, effective immediately upon passing and expiring at the end of Q2 2025 (June 30, 2025), to manage the primary MAGIC-ETH Protocol-Owned Liquidity (PoL) pool.
  • Grant the core contributor team unilateral authority, within the same timeframe (until June 30, 2025), to initiate and execute the wind-down and shutdown of the Treasure Chain infrastructure currently operating on the ZKsync network.
  • Authorize the team to take necessary actions related to the above, including migrating liquidity, bridging assets, decommissioning services, and communicating the process, without requiring separate, subsequent governance votes for each specific action within this scope.

Rationale

The recent communication from John Patten has laid bare the serious financial challenges facing TreasureDAO. With a significantly reduced runway (estimated to last until December 2025, potentially February 2026 in an optimistic scenario) and a high historical burn rate, immediate and drastic measures are required for survival.

  1. Need for Agility and Cost Reduction: The previous operational model, including the game publishing stack and the Treasure Chain, has proven financially unsustainable. The Treasure Chain alone carries a fixed annual cost of approximately $450,000 USD, a burden the treasury can no longer support, especially given the ZKsync grant structure does not fully cover ongoing costs and is unlocked over time. Retiring the chain is presented as a necessity, not a choice.
  2. Operational Efficiency in Crisis: Standard governance procedures, while vital in normal times, introduce delays. During this critical period, the core team requires the flexibility to make rapid decisions regarding asset management (the PoL) and infrastructure decommissioning (the Chain) to preserve capital and execute the strategic shift towards core products (Marketplace, Bridgeworld, Smolworld, AI). Waiting for individual votes on each step of chain shutdown or each potential PoL adjustment could waste precious time and resources.
  3. Specific Asset Management (PoL): The MAGIC-ETH PoL pool, comprising approximately 3.18M MAGIC and 138.76 ETH at the time of writing, represents significant DAO-controlled liquidity. As the chain’s future is uncertain under this proposal, the team needs the authority to manage this liquidity efficiently – potentially bridging it back to L1 or migrating to other chains, ensuring its safety and accessibility.
  4. Defined Scope and Duration: This proposal requests temporary authority with a clear expiry date (End of Q2 2025). It is explicitly limited to the management of the specified PoL pool and the wind-down of the Treasure Chain. It is an emergency measure reflecting the current extraordinary circumstances, not a permanent change to DAO governance principles. Granting this authority allows the lean, refocused team to concentrate on execution during this turnaround period.
  5. Alignment with New Strategy: This operational flexibility directly supports the proposed pivot away from the costly publishing model and chain infrastructure towards a leaner focus on core IP and potentially revenue-generating AI technology, as outlined by John Patten.

Proposal

  1. Grant Temporary Unilateral Authority: The TreasureDAO grants the core contributor team temporary unilateral authority to manage specific assets and infrastructure as outlined below.
  2. Duration: This authority is effective immediately upon the successful passing of this proposal via Snapshot vote and will expire on June 30, 2025. Any actions requiring such authority must be initiated before this expiry date.
  3. Scope - PoL Management: The authorized scope includes the management of the MAGIC-ETH Protocol-Owned Liquidity (PoL) pool, currently comprising approximately 3,181,304.43 MAGIC and 138.76 ETH. Actions permitted under this authority include, but are not limited to:
  • Migrating the liquidity pool off the Treasure Chain.
  • Bridging the assets (MAGIC and ETH) to Ethereum L1 or other platforms deemed suitable by the team.
  • Consolidating or restructuring the PoL position.
  1. Scope - Treasure Chain Wind-Down: The authorized scope includes the planning and execution of the wind-down and eventual shutdown of the Treasure Chain infrastructure operating on ZKsync. Actions permitted under this authority include, but are not limited to:
  • Decommissioning chain validators and related infrastructure.
  • Facilitating the bridging of any remaining user and protocol assets off the Treasure Chain.
  • Archiving necessary data.
  • Communicating the shutdown timeline and process to users and developers.
  • Terminating related service provider agreements where applicable to reduce costs.
  1. Reporting: While specific actions within this scope will not require pre-approval via governance during the defined period, the core team is expected to maintain transparency and provide periodic updates to the community regarding significant actions taken under this temporary authority.

Next Steps

• Community Discussion & Temperature Check: Begins immediately upon posting and lasts for 72 hours.
• Snapshot Vote: A formal Snapshot vote will be posted following the discussion period, lasting for 96 hours.

This TIP requests the DAO’s trust in the core team to navigate this difficult period with the necessary speed and flexibility. Approval signifies agreement that these emergency powers are warranted given the circumstances and are crucial for the potential recovery and successful pivot of the Treasure ecosystem.