Later this week, the Treasure project will launch its native marketplace on Arbitrum. The marketplace — which will be the first NFT viewer and marketplace on Arbitrum compatible with all token standards — marks the end of the v1 launch. We recently issued new, fully animated Treasure and Legions cards as well as implemented the second wave of MAGIC mining. The current mine has a reflexive design wherein MAGIC staking results in higher emissions from the mine and “turns on” the capacity of treasures to begin minting consumables.

We are also excited to announce one final bit of news before the marketplace goes live: implementation of the MAGIC DAO.

Staked MAGIC holders will now have full control over all parts of the Treasure economy, including the MAGIC tokenomics and the Treasure marketplace.

The DAO’s treasury will be the sole recipient of proceeds from marketplace sales. The market will launch with a 5% commission on sales to begin immediately raising funds for the DAO. Staked MAGIC holders will have the opportunity to adjust this rate — as well as the MAGIC tokenomics — through governance proposals.

Tokenomics

As per the current token design, one-third of the total MAGIC supply was distributed in the initial 30 day farming period. We also minted tokens for the team that will be subject to DAO review (discussed below).

Future MAGIC emissions will be distributed at the following ratios:

MAGIC emission mimics Bitcoin’s halvening, but this event occurs every year as opposed to every four years. The total supply will be ~350,000,000 tokens.

The team deliberately opted for high inflation at the beginning to create long-term sustainability. Successful DeFi protocols have almost universally implemented high emissions to help bootstrap a community and liquidity.

Moreover, the design of the MAGIC mine created uniquely high rewards for users who were willing to lock up their MAGIC for longer periods. These users played a key role in bootstrapping liquidity for the protocol and demonstrated great confidence in its future. This group proved themselves to be the best stewards of the protocol and therefore the best possible trustees of the DAO.

We plan to design initial DAO voting (subject to future DAO revision) to weight the votes of long-term stakers over short-term stakers. This weighting will minimize the ability of mercenary farmers to gut the future of the protocol through short-term oriented governance.

Team Tokens and Ecosystem Fund

After the end of the MAGIC farm, the team carried out the announced plan of retroactively minting 10% of the farmed supply as team tokens (a total of 11,644,017 tokens).

The team also printed (3,911,782 MAGIC) tokens for Q3 of the Year 1 ecosystem fund. (To date, none of these tokens have been spent. They will be sent in full to the DAO wallet.)

The team will submit a proposal to the DAO to honor these preexisting allocations and distribute these tokens to the team, subject to the previously announced vesting schedule (three-month cliff for the first third, with the second third vesting in month four and the final third in month five).

Given the fair launch origins of the project, we believe the 10% allocation is important to incentivize long-term participation by the team members. The NFTs in the ecosystem were created and distributed for free. MAGIC was also farmed for free. The 10% team allocation is important to establishing the team’s long-term interest in Treasure’s success.

DAO Implementation

The DAO will go live later this week, allowing MAGIC stakers to immediately being submitting proposals to governance. Initially, the funds in the DAO treasury will be limited to the aforementioned tokens — the existing team allocation and the ecosystem fund.

After the marketplace launches, all proceeds will go directly to the DAO. (The team hopes that the DAO initially uses the treasury to aggressively fund development and ecosystem expansion and delaying fee sharing for staked MAGIC until sufficient runway for the project has been achieved.) Revenue will be subject to DAO voting before being spent or allocated.

We are excited about this next chapter in the project and look forward to seeing decentralization advance the core mission of this metaverse!