SUMMARY

This proposal voids the linear unlock of the ecosystem fund and authorizes the core contributors to divest these tokens at market-neutral rates defined by TIP-17. Under the previous tokenomics the ecofund was unlocked linearly each month. This was estimated to be fully released to Treasure by December 2027. This proposal removes that unlock and makes the tokens available to the core contributors immediately from the date of this proposal passing. This proposal does not authorize the minting of additional tokens. After this event, the circulating supply will increase from 311,795,218 to 337,855,447. Circulating supply will increase by 26,924,099 (8%) immediately.

RATIONALE

The Treasure team’s current stablecoin runway is until August 2026. This proposal does not reflect an immediate need for diversification for continued operations. We have recovered from our early 2025 setbacks with strength and are preparing for the long-term again. This proposal is to enable the DAO to be well prepared and funded going into the next few years, removing the linear unlock of the ecosystem fund that was created in 2021 when Treasure was a different organization. Our pivot and new goals require us to be flexible and will provide us the tools to strive in the coming years.

The original emissions schedule was created almost four years ago when MAGIC’s market cap was much smaller. We have learned many lessons during this time, especially the volatility of the MAGIC price. The linear unlock was put there to reassure the community that the contributors would not be divesting large amounts through a DEX in the early months of the project, but it makes little sense to keep this guard-rail when the token is almost entirely emitted and with major CEX listings that enable market-neutral diversification.

Note: the current market maker proposals (TIP-17) establish the rate of diversification through Flowdesk. Treasure has used this program for years and successfully converted into stablecoins at a market neutral rate. On a day like today for example, where volumes were nearly $500 million, diversification would have been a drop in the bucket and had no market impact.

The restrictions put in place by the original DAO proposals were useful in the early years but in retrospect, unwise to carry into later years as it meant the DAO has been unable to divest for runway during times of opportune prices and instead was held at the mercy of bear and bull cycles.

IMPLEMENTATION

If this proposal passes, then the core contributors will update the circulating supply after diversification occurs.

The ecofund will unlock 26,924,099 MAGIC which is currently held by TreasureDAO and will be added to circulating supply upon passing this proposal.

Diversification reporting will be part of quarterly financials as is the status quo.

No new tokens are to be minted in this proposal. This proposal only concerns existing tokens in the ecosystem fund currently earmarked by linear unlocks.

ADDITIONAL CLARITY ON CIRCULATING SUPPLY

The maximum supply does not change as a result of this proposal. Moreover, the circulating supply will not exceed previous reporting. The DAO has “underspent” in various buckets.

TIP-54 consolidated the total number of multisigs that contributors needed to manage on behalf of the DAO. Specifically, the DAO treasury also became the destination safe for DA staking rewards, liquidity, community grants, Smol treasury, the GBS entity Treasury, Bridgeworld, Magicswap, and Mage: https://snapshot.box/#/s:treasuregaming.eth/proposal/0xe4f4a39f293cf97f581a003f62575766e1528f0073fdec08323fc3ff8bdc2b57