TIP-59: Sunset Magicswap and Treasure Marketplace

Proposals
1

Summary
This proposal sunsets the Magicswap and Treasure Marketplace front ends while reaffirming the DAO’s focus on AI-powered entertainment, NFTs, and Smolworld (name TBA). Contributors gain authority to retire infrastructure that is unprofitable, redundant, or not adding value to MAGIC, provided sufficient alternatives exist.

Rationale
Treasure removed the front ends for Magicswap and the marketplace after reviewing their profitability and usage. Magicswap’s TVL has fallen to near zero following prior decisions to remove DAO-owned liquidity and support partners in migrating to other AMMs. Marketplace activity has also declined sharply, and with existing feature completeness, it no longer justifies maintenance for only Treasure’s collections. In both cases, suitable alternatives exist, and underlying contracts remain onchain. The front ends have been temporarily redeployed pending this DAO vote to retire them.

To support partners, we maintained staff roles and engaged contractors as needed to manage the publishing stack, ensuring Treasure’s reputation was protected and partners had sufficient time to adopt alternative tech stacks. In recent weeks, we also vetted market alternatives such as Magic Eden and worked with them to support community assets before implementing changes.

This proposal also puts forward a clearer framework for contributors to streamline business operations. While this has been the de facto practice of the DAO for the past few years, it is now being specifically established for clarity. Contributors may deprecate DAO-run infrastructure (e.g., marketplace, AMM) when the following conditions are met:

  1. Shows negligible usage or profitability

  2. Has adequate market alternatives

  3. Can be retired without security concerns for users

  4. Is transparently announced to the community prior to implementation and later reported to the DAO (e.g., quarterly update or post-mortem), even if not subject to a vote

This strikes a balance between avoiding governance fatigue and ensuring accountability, allowing the DAO to remain focused on its core mission of delivering AI-powered entertainment while running lean and cutting costs quickly for failed programs.

Implementation
Upon passage, contributors will permanently retire the front ends for Magicswap v2 and the Treasure marketplace.

1 Like