Treasure DAO Shuts Gaming Platform and Lays Off Staff to Survive
Treasure DAO Shifts Focus Amid Financial Struggles
Treasure DAO has discontinued its gaming publishing platform and blockchain, leading to layoffs and the departure of several key leaders. The organization faces significant financial challenges.
- Annual burn rate was $8.3 million for treasury usage and $816,000 for Bridgeworld.
- Q4 2022 expenses exceeded $11.3 million with only $40,000 in revenue.
- Current runway includes $2.4 million in stablecoins and 22.3 million MAGIC tokens, valued at approximately $1.56 million.
- The team aims to withdraw $786,000 in funds from market maker Flowdesk to extend their runway by two months.
- If cash flow remains at $393,000 monthly, operations may last another 10 to 12 months.
- Previously held $74 million in crypto assets; funding raised totaled $6.5 million across two seed rounds.
- Over 15 employees have been laid off; the team is pivoting towards AI.
- Some partnered games have exited due to strategic misalignment.
Cofounder John Patten indicated the pivot was necessary for survival, stating, “We spent too long trying to win a prize not even worth fighting for.”