Treasure DAO has announced the official shutdown of the Treasure Chain, set to take place on May 30, 2025. Following the community’s approval of proposal TIP-52, the team has already begun migrating liquidity and assets back to Layer 1 Ethereum and Arbitrum. Holders have until the end of May to bridge out all assets, including ETH, MAGIC, SMOL, and NFTs like The Beacon’s WOP.
About Treasure DAO
Treasure DAO is best known as a decentralized gaming platform and ecosystem powered by the MAGIC token. It has built a strong presence by fostering community-owned games, NFT collections, and tools across the web3 gaming space. The DAO has also supported the growth of Smolverse, The Beacon, and several other web3-native projects, positioning itself as a key player in web3 gaming since the early days of play-to-earn.
In 2023, Treasure launched the Treasure Chain, a dedicated Layer 2 chain built to house MAGIC-centric projects and offer cheaper transactions for games and collectors. It was meant to be a long-term solution to scalability and user onboarding. However, the evolving needs of the ecosystem and the broader web3 market have led to a change in strategy.
Trasure Ecosystem
Why Is Treasure Chain Shutting Down?
The decision was driven by both technical and strategic considerations. Maintaining a custom chain requires ongoing resources, security audits, and community engagement. As the web3 landscape shifted and Layer 2 solutions like Arbitrum continued to mature, Treasure DAO determined it was more sustainable to migrate back to Ethereum’s established infrastructure.
TIP-52, the proposal that called for winding down Treasure Chain, was passed through community voting earlier this year. The Treasure team emphasized that this move will allow them to better focus on growing their games and the MAGIC ecosystem without the burden of maintaining a standalone chain.
Key Details on Shutdown and Migration Process
The chain wind-down is progressing quickly. Bridging into Treasure Chain has already been disabled, and the team has successfully migrated MAGIC-ETH liquidity to the Ethereum mainnet, where it is now actively trading on Uniswap. SMOL-MAGIC liquidity is also in the process of migrating. The Topaz Testnet is scheduled to shut down on May 9, 2025, while the mainnet shutdown is set for May 30, 2025.
Holders are strongly urged to bridge out their assets before the shutdown date. This includes moving MAGIC and ETH to Layer 1 using the Treasure Bridge, bridging SMOL tokens through Nexus, transferring Beacon WOP NFTs to Arbitrum, and removing any remaining liquidity positions tied to the Treasure Chain.
Treasure Bridge
$MAGIC and the Treasure Ecosystem
Even with the Treasure Chain shutting down, MAGIC isn’t going anywhere. It will continue as the core token of the Treasure DAO ecosystem, with its liquidity and utility now fully shifting to Ethereum and Arbitrum—two of the most reliable and widely adopted networks in web3.
For MAGIC holders, this transition could lead to deeper liquidity, smoother trading, and more opportunities for integration with projects beyond Treasure’s own ecosystem. Without the burden of maintaining a dedicated chain, the team can now focus on building partnerships, developing new games, and expanding the overall ecosystem.
This move shouldn’t be seen as Treasure DAO stepping back. Instead, it’s a strategic pivot toward greater flexibility and long-term sustainability. The DAO has already confirmed its commitment to supporting existing titles like The Beacon and Smolverse, while also paving the way for new web3-native games and experiences. Treasure is also doubling down on developing its flagship products, including Smolverse and Bridgeworld, ensuring they remain central pillars of the ecosystem moving forward.
Treasure DAO Products
Final Thoughts
The wind-down of Treasure Chain reflects a broader trend in web3 gaming. While launching custom chains or subnets seemed promising at first, many projects eventually face challenges like network upkeep, fragmented liquidity, and shifting market demands. For smaller or mid-sized ecosystems, these hurdles can make dedicated chains difficult to sustain. Treasure DAO’s decision to migrate back to larger networks like Ethereum and Arbitrum follows a path taken by other projects seeking stronger security and more liquidity.
As Treasure Chain approaches its shutdown, attention now turns to what’s next. Treasure DAO remains a key player in the web3 gaming space, and moving MAGIC and related assets to Ethereum and Arbitrum could lay the groundwork for a new phase of growth. MAGIC holders should bridge their assets as soon as possible and keep an eye out for upcoming announcements covering new games, partnerships, and the future direction of the ecosystem.
