Michaël van de Poppe - 29 August 2022
TreasureDAO: Arbitrum's Metaverse Play
TreasureDAO recently underwent a rebranding with a new visual identity. The goal: to build a decentralized game console brought together by the MAGIC token and Trove marketplace.
With Arbitrum Odyssey around the corner and the recent rebranding we thought it was a good time to go over the project and see what it has to offer.
What is TreasureDAO?
TreasureDAO is a decentralized DeFi-NFT ecosystem designed for Arbitrum metaverse projects. Every project on Treasure's marketplace makes use of MAGIC in their respective metaverses, with each community creating their own lore and storytelling for this resource.
MAGIC, Treasure's native token, is the currency for marketplace transactions. As a result, MAGIC serves as the reserve currency for the entire web of metaverses linked by the Treasure umbrella. MAGIC connects treasure projects, both narratively and economically.
Treasure is a Decentralized Autonomous Organization (DAO) in which token holders vote on key decisions proposed by the Council and community. Treasure is rapidly expanding, thanks to over ten core contributors and a growing network of community contributors.
Since TreasureDAO operates as a DAO, it does not have the agency comparable to a centrally run company. This means that TreasureDAO does not develop as fast as a centrally run company would, such as any project being built by Animoca Brands. While operating as a DAO has some pros, it also has cons like slower development. Still, TreasureDAO has delivered on their promises and continues to build and innovate.
How it began
Treasure began on Ethereum Layer 1 as a Loot derivative (check out this article for more info on Loot project). After transitioning to Arbitrum, the team was able to put together a strong community to become the dominant NFT platform on Arbitrum. The switch to Arbitrum was for a few reasons. The biggest reasons were to significantly lower gas fees compared to Ethereum L1 and to increase adoption. Arbitrum had a TVL of $2b when TreasureDAO decided to switch to the L2.
Treasure had a fair launch. The vast majority of Treasure's team members were recruited directly from the community, inspired by Treasure's ethos of open construction. The DAO has established a framework through which the community can build alongside the team and receive MAGIC rewards for developing key ecosystem components (e.g., tooling, lore, quests). These incentives increase the network effect of MAGIC by aligning the broader ecosystem and incentivizing other communities to build on top of Treasure.
Currently the ecosystem of decentralized NFT economies and games are powered by MAGIC and linked by common infrastructure. TreasureDAO consists of ~100k community members and has 9 games launched to date. It has achieved over $285M in trading volume through its marketplace since its launch seven months ago.
TreasureDAO has a clear path forward after rebranding. Let’s have a look at what the team has planned as part of the rebranding to become the world’s first decentralized gaming console.
The console stack is the framework on which the TreasureDAO operates. Within the console stack, Treasure comprises three key layers:
Cartridges: Games and metaverses built from the ground up by Treasure and seasoned builders, all connected by MAGIC.
Community: Composite of many smaller communities, connected through MAGIC, lore, guilds, and resources.
Infrastructure: The shared economic engine, tooling and resources that powers the ecosystem and empowers builders.
You can see each project built on top of the TreasureDAO as a cartridge. Similar to how retro games were sold as cartridges to be put into the target console.
Trove aims to add a new flavor to NFT marketplaces: gamification. Trove will provide both collections and collectors with a gamified experience never before attempted by a marketplace. The Trove marketplace will replace the old marketplace called Treasure. Trove began as a curated marketplace, but the team intends to expand to an open and permissionless listing model in the future.
Trove's collections are divided into two types: game cartridges denominated in MAGIC (from metaverses and games with integration into Treasure's metaverse economy) and generalized collections denominated in ETH.
Trove builds on Treasure's brand by offering a much broader range of NFTs such as art, photography, profile pictures, music, and more. The team has been working hard to build partnerships with metaverse projects. For a complete list of partnerships have a look here. The most successful project partnership so far has been the Smolbrains NFT collection. For more information on Smolverse, have a look at their website.
Recently Trove also added support for Ethereum L1. Demand for L1 support came from developers wanting to launch their metaverse projects on L1 but also wanting to partner with TreasureDAO. For exact details on the launch on L1 refer to the official launch post.
This week TreasureDAO launched their own DEX. It is an essential part of the ecosystem because it will facilitate the cross-game swapping of tokens. For now the DEX only supports swapping between MAGIC and ELM and providing liquidity for that pair, but expect more tokens to be launched on the DEX soon.
The Treasure metaverse's natural resource is MAGIC. It powers NFTs, transforming them from speculative assets into productive, yield-bearing assets.
MAGIC is designed to become increasingly scarce (emissions decrease as the economy's complexity increases). The 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 Treasure ecosystem is governed by $MAGIC holders.
The MAGIC token can be seen as a proxy for exposure to the whole TreasureDAO ecosystem. Since all metaverse projects building on the TreasureDAO framework incorporate MAGIC in their ecosystem, they are all connected to the MAGIC token. Assuming the TreasureDAO ecosystem will keep expanding, MAGIC will become a kind of index of metaverse projects. The success of TreasureDAO will depend on the prosperity of the metaverse projects. If you are bullish on metaverse projects, MAGIC is a great way to gain exposure to multiple strong projects at once.
We expect the MAGIC token to perform well during Arbitrum Odyssey, as well as when the metaverse narrative gains traction once more. For our complete thesis on why we expect TreasureDAO as well as other Arbitrum native projects to perform well, have a look at this article where we extensively cover Arbitrum Odyssey.
TreasureDAO is an interesting niche project that is working on becoming the first decentralized gaming console. While the concept is completely new and has not been tried before, it is a solid experiment of trying something new. The MAGIC tokens act as an index for a diverse set of metaverse projects and its success is dependent on the success of the partnered projects.
It will be interesting to see how the project works on expanding their partnerships and functionalities, and if the team will succeed in becoming the world’s first decentralized gaming console.