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

Analysis of the 'Nintendo' Treasure DAO in the Cryptocurrency World

Reference: https://medium.com/@HotairballoonCN/recommended-coin-configuration-in-hot-air-balloon-special-issue-sixth-issue-an-interpretation-of-the-nintendo-treasure-dao-in-the-encrypted-world-9759793a6ce4

Hot Air Balloon Special Issue: Recommended Coin Configuration (Sixth Issue): An Interpretation of the Nintendo Treasure DAO in the Encrypted World | by HotairballoonCN | Aug, 2023 | Medium

HotairballoonCN
·
Follow
14 min read
·
1 day ago
—
Share
I. What is Treasure
Treasure DAO (referred to 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, with the hope of supporting 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 that provides developers with tools and resources to build, publish, and tokenize Web3.0 games.
Second, as the underlying economic control layer for other games, other project teams may outsource token management to TreasureDAO for operation.
II. Team and Financing
1. Team
Most of the team members of Treasure come directly from the community. Treasure is composed of developers, product managers, artists, brand builders, marketers, economists, and game players distributed around the world. All of these are supported by an intimate and vibrant network composed of DAO contributors and enthusiastic community members.
TreasureDAO has established a framework where the community can collaborate with the team and receive rewards in the form of MAGIC tokens to develop various key parts of the ecosystem. These incentives can promote the construction of a broader ecosystem and motivate other communities to build on the Treasure platform.
According to the official website (https://treasure.lol/team), the Co-Founders of Treasure are John Patten and Karel Vuong. John Patten is the Co-Founder and CEO, and he was previously the Head of Growth at Osmosis.
2. Financing
On September 16, 2022, Treasure DAO initiated a proposal to sell 3.5 million US dollars worth of ecosystem token MAGIC. The token sale was led by Digital Strategies Guild, with participation from 1kx, Neon DAO, ID Theory, and new participants such as Arbitrum, Skycatcher Crypto, IOSG, Alchemy Ventures, IndiGG, StreamingFast, and other strategic partners.
III. Origin of TreasureDAO
Let’s review the origin and development of the TreasureDAO project to better understand its original intention.
September 2021: Official launch with a focus on serving the game ecosystem and community
Loot, initiated by Don Hoffman in August 2021, is a project that allows free minting of NFTs using a bottom-up construction method. Treasure is one of the projects influenced by this construction method. It was initiated by John Patten in September 2021, and the core theme is community-oriented.
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 develop on top of it.
John Patten even proposed a new concept, “Proof of Imagination: Joy as a Form of Collateral,” which was the 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 and realized that it was not enough to influence the game community through a unique bottom-up approach only on Ethereum Layer1. Therefore, in October 2021, Treasure officially transitioned to Arbitrum and launched the first NFT marketplace on Arbitrum, called Treasure Marketplace.
February 2022: The first flagship game, Bridgeworld
Bridgeworld is a strategy game that revolves around mining, farming, summoning, exploration, and other gamified DeFi actions.
Atlas Mine is the staking protocol in Bridgeworld, which 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 improvement by introducing external partners instead of relying solely on core contributors
To achieve the vision of becoming a decentralized gaming hub, the Treasure team realized that building a finance-centered ecosystem alone was not enough. They started to focus on building physical 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. At this time, Treasure decided to expand the Treasure system to collaborative projects instead of relying solely on core contributors.
June 2022: Brand reshaping, ambitious TreasureDAO
Treasure identified three key layers: Armory (game and metaverse projects), Community (Treasure’s sub-communities and community connections), and Infrastructure (shared economy engine, tools, and resources to enhance builders’ capabilities).
This indicates that Treasure has enough confidence to build the first decentralized gaming platform and reshape the next generation of games. Taking TroveMarket as an example, previously, Treasure planned to separate the two markets: Trove for the entire Arbitrum NFT transactions priced in ETH, and Treasureverse for the Treasure market priced only in MAGIC. However, the team 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 external ecosystem, providing an integrated trading experience.
IV. Key Products
TreasureDAO’s current main products include Trove Marketplace, BridgeWorld, and MagicSwap, and they 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 was officially launched in June 2022. It evolved from the Treasure Marketplace launched in November 2021. The initial idea was to provide 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 the market has exceeded 27 million US dollars.
2. BridgeWorld
A game launched by TreasureDAO with MAGIC token distribution as the core.
Bridgeworld is a strategic business, trade, and governance game that evolved from the original chain game Legions. It is also the core game launched by the Treasure DAO team.
Bridgeworld combines various gameplay elements, and players can do tasks by purchasing legions and receive various NFT rewards. 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 for game assets within the Treasure ecosystem as a DEX.
MagicSwap aims to create a more balanced and dynamic financial system, providing a frictionless experience for NFT trading. It uses MAGIC 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, which hosts project proposal discussions, and Snapshot, which conducts proposal voting.
Any community member has the right to propose governance proposals and improvements for Treasure and publicly display them 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 review and vote on proposals. If a proposal receives more than 66% approval, it is passed. Voting power is proportional to the number of governance tokens held, and 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.
VI. Token Economy
The total supply of MAGIC tokens is 347,714,007, and the current circulating supply is 222,275,433, accounting for 63.92% of the total supply.
The distribution 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 adopts the method of early high circulation and halving the output annually for token release.
As the native token of the Treasure platform, MAGIC has various use cases, including:
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 ecosystem funds or allocation of treasury revenue in games.
With the continuous development of the ecosystem, the use cases of MAGIC tokens will continue to expand.
VII. Operational Data
1. Active Users
According to data from the Dune platform, there are 1,474 weekly active users. From the chart above, we can see the following:
1) In the first half of 2022, there were more active users, mainly due to the release of a series of new products such as the BridgeWorld and Smolverse game systems and the 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. During this period, the pixel-style Free 2 Play action role-playing game The Beacon once again sparked the Treasure ecosystem boom. The game mechanics are very simple, mainly focused on clearing levels, answering questions, and buying and selling items.
3) In January of this year, Treasure DAO launched the game creator program supported by Arbitrum. At the same time, influenced by the expectation of the 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 the NFT trading service market within Treasure, and BridgeWorld, the game ecosystem, are the core active places for users. Relatively speaking, there are more active users.
MagicSwap has relatively fewer active users.
2. NFT Trading Volume
According to data from the Dune Analytics platform, the monthly NFT trading volume of Trove is around 1.08 million MAGIC (approximately $800,000) on Arbitrum. In January 2022, the trading volume exceeded 42 million MAGIC, reaching its historical peak. Since then, the monthly trading volume of NFTs has continued to decline, and currently (July), the monthly trading volume is only about 2% of the peak. Of course, the decline in NFT trading volume is mainly due to the overall downturn in the NFT market.
From the chart above, we can see that the collection with the largest share of NFT trading volume is Legions, accounting for 33.8%, followed by Smol Brains, accounting for 21.9%. Treasures account for 11.9%.
Let’s also look at the data for the past 90 days.
In the past 90 days, the largest trading volume was in Consumables, reaching 800,000 MAGIC, followed by Treasures, reaching 570,000 MAGIC, and the third was Smol Brains, reaching 410,000 MAGIC.
3. Social Media
Let’s take a look at the performance on social media. As of August 13, 2023, Treasure DAO’s official Twitter account has 144,000 followers, and the Discord community has 32,004 members.
4. Incubated Games
According to data 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. It has been listed on mainstream exchanges. The market capitalization of MAGIC is $130 million. According to Coinmarketcap, it is currently ranked 168th in terms of market capitalization, and the fully diluted market capitalization is $206 million.
The lowest historical price of MAGIC token is $0.1837 USDT, and the highest is $6.32 USDT. The current price has fallen by 90.6% from its peak, and the current MAGIC price is only a little over three times the lowest historical price.
VIII. Summary
In summary, TreasureDAO stands out among many GameFi projects due to its excellent token economy design, community operations, and accurate grasp of market demand.
TreasureDAO provides a aggregative game platform for Web3 gamers and provides the infrastructure needed for game developers or publishers, making TreasureDAO a 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, stake tokens, and more. TreasureDAO has developed into a decentralized game ecosystem driven by a passionate community of players and builders, which deepens the bond between players and the TreasureDAO platform. This is also one of the important factors for the success of TreasureDAO.
MAGIC token, as the fuel circulating within the TreasureDAO ecosystem, is being empowered by Treasure to have more use cases.
Each community in the Treasure ecosystem builds its own story around the MAGIC token, connecting narrative and economic ecosystems through MAGIC. MAGIC also serves as the reserve currency connecting the entire Treasure ecosystem in this way.
Of course, the daily active users and trading volume of TreasureDAO have declined, which is also affected by the overall market downturn in the crypto market. With the recovery of the crypto market and the influx of more users into the Web3.0 sector, the advantages of TreasureDAO will become more apparent.
HotairballoonCN will continue to follow the updates of Treasure and share them with everyone in a timely manner. Welcome everyone to follow HotairballoonCN on Twitter for more industry information:
Tweets by HotairballoonCN

• Reviewing the exciting developments and data highlights in the DEX sector over the past two weeks
• Inventory of Intent-driven Cryptocurrency Projects
• Reviewing the ‘Intent-driven’ Projects Brink, basedmarkets, Versa…

We will continue to update Blocking; if you have any questions or suggestions, please contact us!