An Analysis of the ‘Nintendo’ of the Cryptocurrency World Treasure DAO

Analysis of the Cryptocurrency Treasure DAO, the Nintendo of the Blockchain World

1. What is Treasure

Treasure DAO (abbreviated as Treasure) is a native metaverse game ecosystem on Arbitrum, aiming to bring games and players together through its ecosystem token MAGIC. Treasure originally started as an NFT project on the Loot ecosystem and later became a decentralized game ecosystem for shared resources, communities, and infrastructure.

The platform integrates applications such as NFT, DeFi, and GameFi, hoping to support NFT and metaverse projects to build their own ecosystems on the platform and achieve integration between projects.

We can understand Treasure from two perspectives. First, TreasureDAO is a decentralized game publishing platform, and the Treasure ecosystem provides developers with tools and resources to build, publish, and tokenize Web3.0 games.

Second, as the basic economic control layer for other games, other project teams may outsource token management to TreasureDAO for operation.

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2. Team and Financing

1) Team

The majority of the Treasure team members come directly from thecommunity. Treasure is composed of developers, product managers, artists, brand builders, marketers, economists, and game players distributed globally. All of these receive support from an intimate and vibrant network composed of DAO contributors and passionate community members.

TreasureDAO has established a framework that allows the community to collaborate with the team and rewards them with MAGIC tokens for developing various key parts of the ecosystem. These incentives can promote the construction of a broader ecosystem and encourage other communities to build on the Treasure platform.

According to the official website (https://treasure.lol/team), the Co-Founders of Treasure are John LianGuaitten and Karel Vuong. Among them, John LianGuaitten is the co-founder and CEO, and was previously the growth lead at Osmosis.

2) Financing

On September 16, 2022, Treasure DAO initiated a proposal to sell $3.5 million worth of ecosystem token MAGIC. This token sale was led by Digital Strategies Guild, with participation from 1kx, Neon DAO, ID Theory, and new participants Arbitrum, Skycatcher Crypto, IOSG, Alchemy Ventures, IndiGG, StreamingFast, and other strategic partners.

3. Origin of TreasureDAO

We will summarize the origin and development of the TreasureDAO project to facilitate understanding of the original intention of the TreasureDAO project.

September 2021: Official launch with the goal of serving the game ecosystem and community

Loot is a project initiated by Don Hoffman in August 2021, which uses a bottom-up approach to mint NFTs for free. Treasure is one of the projects influenced by this construction method, initiated by John LianGuaitten in September 2021, with the core theme of community first.

Treasure provides the community with free minting of Genesis NFT Treasure Cards and distributed some to the Loot community. Within a month of its release, Treasure created the first revenue protocol, “Magic Farm”.

From the beginning, Treasure has iterated faster than any other Loot project and set a long-term goal of creating a place with a loyal community where game developers can build upon.

John LianGuaitten even proposed a new concept, “Proof of Imagination: Joy as a Form of Collateral,” which was a core principle in the early development of the Treasure ecosystem.

November 2021: Transition to Arbitrum and Launch of the First NFT Marketplace

Treasure initially operated on Ethereum Layer1, but the team realized after a month that it was not enough to influence the gaming community through a unique bottom-up approach. Therefore, in October 2021, Treasure officially transitioned to Arbitrum and launched the first NFT marketplace on Arbitrum in November 2021, called Treasure Marketplace.

February 2022: The First Flagship Game, Bridgeworld

Bridgeworld is a strategy game centered around mining, farming, summoning, exploration, and more gamified DeFi actions.

Atlas Mine is the staking protocol in Bridgeworld that rewards MAGIC based on quantity, time, and NFT enhancements (such as Legions and Treasures). It establishes an interconnected economy on MAGIC, Legions NFTs, and Treasure NFTs, aiming to guide the Treasure ecosystem.

April 2022: Key Improvements by Introducing External Partnerships Instead of Solely Relying on Core Contributors

In order to realize the vision of becoming a decentralized gaming hub, the Treasure team realized that building a finance-centered ecosystem alone was not enough. They began to shift their focus towards building tangible games and introducing experienced game developers.

In April 2022, Treasure announced a partnership with Strider, a team composed of industry veterans, to build games in the Treasureverse. It was also at this time that Treasure decided to extend the Treasure system to collaborative projects instead of solely relying on core contributors.

June 2022: Brand Reshaping with Ambitious TreasureDAO

Treasure identified three key layers: Arsenal (games and metaverse projects), Community (Treasure’s sub-communities and community connections), and Infrastructure (shared economic engine, tools, and resources to enhance builders’ capabilities).

This indicates that Treasure is confident in building the first decentralized gaming platform and reshaping the next generation of games. As an example, previously, Treasure planned to separate the two markets: Trove for ETH-denominated Arbitrum NFT transactions, and Treasureverse for Treasure market priced in MAGIC. However, the team later became more confident in Trove becoming the core market on Arbitrum and L2, so they decided to merge the two and no longer distinguish between the Treasure ecosystem and the external ecosystem, providing an integrated trading experience.

IV. Main Products

TreasureDAO currently has main products such as Trove Marketplace, BridgeWorld, and MagicSwap, which have become the infrastructure of the Treasure ecosystem.

1. Trove Marketplace

TroveMarket provides market trading services for NFT assets in various games or metaverse projects within the Treasure ecosystem.

Trove Marketplace officially launched in June 2022. It evolved from the Treasure Marketplace launched in November 2021, with the initial idea of providing an NFT trading market for ecosystem projects on Treasure. It is also the leading NFT trading market on Arbitrum.

So far, the total trading volume of this market has exceeded 270 million US dollars.

2. BridgeWorld

A game launched by TreasureDAO with the distribution of MAGIC tokens as the core.

Bridgeworld is a strategic, commercial, trade, and ruling game upgraded from the original chain game Legions. It is also the core game launched by the Treasure DAO team.

Bridgeworld combines multiple gameplay elements. Players can purchase legions to perform tasks and obtain various NFT rewards during the tasks. These NFT rewards can be sold in exchange for the native token MAGIC or synthesized into more complex NFTs for mining.

3. MagicSwap

MagicSwap provides liquidity DEX for game assets within the Treasure ecosystem.

MagicSwap is dedicated to creating a more balanced and dynamic financial system, providing a frictionless experience for NFT transactions. MAGIC is used as the governance and fee token, and the protocol charges a 0.5% fee on transactions in the MagicSwap pool.

V. Governance

Treasure DAO is a relatively mature decentralized governance organization for NFT projects in the market. Treasure DAO consists of two parts: the forum for hosting project proposal discussions and Snapshot for proposal voting.

Any community member has the right to propose proposals and improvement measures for Treasure governance, which will be publicly displayed on the forum for at least one day to collect opinions and discussions. After the public display period, the proposal will be voted on in Snapshot.

Community members holding governance tokens can review and vote on proposals. If a proposal receives more than 66% approval votes, it is considered approved. Voting power is proportional to the number of governance tokens held. The more tokens held, the greater the voting weight. Of course, the longer the token is staked, the greater the voting weight.

Through decentralized governance, Treasure community members collectively decide the project’s continuation, organizational development, and project updates, making Treasure DAO an important example of decentralized governance practice.

Six, Token Economy

The total supply of MAGIC tokens is 347,714,007, and the current circulation is 222,275,433, accounting for 63.92% of the total supply of MAGIC tokens.

The allocation of MAGIC tokens is as follows:

• Treasure Farm: 33%;
• Mining: 25%;
• Staking: 17%;
• Ecosystem Development Fund: 15%;
• Team: 10% (this portion will be gradually released over 12 years)

MAGIC tokens are released in a way that involves high initial circulation followed by halving of production every year.

As the native token of the Treasure platform, MAGIC tokens are primarily used for:

1) Staking to earn MAGIC;

2) Summoning legions and synthesizing NFTs in Bridgeworld;

3) Serving as the settlement digital currency for TroveMarket;

4) Used in other scenarios in game projects, such as battle staking currency in BattleFly;

5) Participating in project governance, such as the game’s ecological fund or distribution of treasury income.

As the ecosystem continues to develop, the use cases for MAGIC tokens will continue to expand.

Seven, Operational Data

1. Active Users

According to data statistics from the dune platform, there are 1,474 active users per week.

From the above charts, we can see that:

1) In the first half of 2022, there were more active users due to the release of a series of new products such as BridgeWorld, Smolverse game system, and NFT trading platform, which gradually put the Treasure ecosystem on track, resulting in more active users.

2) From November to December 2022, there was another peak in active users because the pixel-style Free 2 Play action role-playing game The Beacon once again sparked enthusiasm in the Treasure ecosystem. The game mechanics are very simple, mainly involving clearing levels, answering questions, and buying/selling items.

3) In January of this year, Treasure DAO launched the game creator program supported by Arbitrum. At the same time, due to the expectation of an Arbitrum airdrop, Treasure once again experienced a small peak in on-chain user activity.

Overall, the number of active users in the Treasure ecosystem is currently declining, which is consistent with the overall downward trend in the GameFi sector.

TroveMarket, as a NFT trading service marketplace in Treasure, and BridgeWorld, the game ecosystem, are the core active places for users. Comparatively, there are more active users.

On the other hand, Magicswap has relatively fewer active users.

2. NFT Trading Volume

According to data from the Dune Analytics platform, Trove currently has a monthly NFT trading volume of around 1.08 million MAGIC on Arbitrum (with a total value of approximately 800,000 USD). In January 2022, the trading volume exceeded 42 million MAGIC, reaching its historical peak. Since then, the monthly NFT trading volume has continued to decline. Currently (July), the monthly trading volume is only about 2% of the peak value. Of course, the decline in NFT trading volume is mainly affected by the current downturn in the NFT market.

From the above chart, it can be seen that the collection with the largest proportion of NFT trading volume is Legions, accounting for 33.8%, followed by Smol Brains, accounting for 21.9%, and Treasures accounting for 11.9%.

Now let’s look at the data from the past 90 days.

In the past 90 days, the highest trading volume is for Consumables, reaching 800,000 MAGIC, followed by Treasures, reaching 570,000 MAGIC, and the third is Smol Brains, reaching 410,000 MAGIC.

3. Social Media

Now let’s look at the performance on social media. As of August 13, 2023, Treasure DAO’s official Twitter account has 144,000 followers, and the number of Discord members is 32,004.

4. Incubated Games

According to statistics from the official website (https://treasure.lol/games), TreasureDAO has currently incubated 11 games, including The Beacon, Tales of Elleria, Kuroro, Knights of the Ether, Realm, etc.

5. MAGIC Token Performance

Currently, the MAGIC token is listed on exchanges such as Binance, Coinbase, OKX, bitget, Huobi, and Gate. Most mainstream exchanges have listed the MAGIC token. The market cap of MAGIC is 130 million USD. According to Coinmarketcap, it is currently ranked 168th in terms of market cap, and its fully diluted market cap is 206 million USD.

The lowest historical price of the MAGIC token is 0.1837 USDT, and the highest is 6.32 USDT. The current price has dropped by 90.6% from the peak, and the current price of MAGIC is only more than 3 times the lowest historical price.

8. Summary

In summary, TreasureDAO stands out among many GameFi projects due to its excellent tokenomics, community operations, and accurate grasp of market demand.

TreasureDAO provides a aggregated gaming platform for Web3 gamers, as well as the necessary infrastructure for game developers or publishers. Ultimately, TreasureDAO becomes the bridge between players and Web3 games.

TreasureDAO already has an active and loyal community, where community participants can play games together, participate in ecosystem governance, and stake tokens. TreasureDAO has evolved into a decentralized game ecosystem driven by passionate players and builders, making the bond between players and the TreasureDAO platform even stronger. This is also one of the important factors for TreasureDAO’s success.

The MAGIC token, as the fuel circulating within the TreasureDAO ecosystem, is designed to empower the MAGIC token further.

Each community within the Treasure ecosystem builds its own story around the MAGIC token, connecting narrative and economic ecology through MAGIC. MAGIC also serves as the reserve currency that connects the entire Treasure ecosystem.

Of course, currently, TreasureDAO’s daily active users and trading volume have declined, which is also affected by the overall bearish market sentiment in the cryptocurrency market. As the cryptocurrency market improves and more users enter the Web3.0 space, TreasureDAO’s advantages will become more apparent.

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