Treasure DAO came into the Web3 space as an innovative NFT gaming ecosystem that unites multiple gaming worlds through the MAGIC token. However, in April 2025 the organization announced a new direction, stepping away from their own L2 network and various gaming initiatives.
Treasure DAO is a decentralized ecosystem built on the Arbitrum network that connects games, AI platforms and NFTs through the native $MAGIC token. Originally Treasure DAO offered its own Layer-2 network, but since April 2025 the ecosystem moved into a new direction.
A brief history of TreasureDAO
TreasureDAO started as a Loot-inspired project that quickly captivated and rallied support from bold innovators in the crypto sphere.
Initially, Treasure DAO’s Loot-inspired NFTs fell short of expectations and lacked distinction from other Loot forks. To address this, the Treasure team developed a blockchain game called Legions to enhance their NFT series. Today, Legions has transformed into a pivotal game within Treasure DAO’s ecosystem, known as Bridgeworld.
The MAGIC token was initially introduced for free, allowing users to deposit Treasure NFTs, Loot NFTs, or AGLD tokens to earn MAGIC. Later, the market’s interest in MAGIC surged, so the Treasure team shifted their focus to further empower the MAGIC token.
Since then, TreasureDAO has continually evolved and expanded its ecosystem, weaving a network of interconnected gaming worlds through MAGIC tokens and developing diverse blockchain games.
April 2025 and the new chapter
Treasure DAO came into financial trouble, and the treasury wouldn’t support a roadmap far into the future. Basically, the Treasure ecosystem was almost out of funds, and something needed to change. Quarterly expenses have been slashed from $11.3 million to $1.2 million to extend the runway to at least February 2026.
Treasure DAO announced big changes coming to the ecosystem in April 2025.
- Treasure Chain was shutdown. The zkSync-based Treasure network launched in December 2024 after migrating from Arbitrum. But the network closed its doors by May 30, 2025. All assets were migrated to either Ethereum or Arbitrum.
- No more publishing games. Treasure DAO stepped away from its games publishing business, halting grants, an terminating support for third-party developers. As a result, projects such as The Beacon stepped away from the Treasure ecosystem.
- Layoffs. At least 15 contributors were laid off, and key leaders (including co-founder Karel Vuong) stepped away from their position. John Patten stepped in to resume leadership, and lead the organization towards its new future.
The pivot is a matter of survival. Without it, Treasure DAO would already no longer exist. It’s Treasure DAO’s attempt to adapt to financial realities, streamline operations, and explore AI-driven opportunities. With this renewed focus, the DAO wants to ensure longterm sustainability while maintaining its community-driven ethos.
Focus on 4 Core Products
As a result of these changes, Treasure DAO now concentrates itself on 4 products:
- The Trove marketplace for NFT trading
- Bridgeworld, the flagship metaverse game
- Smolworld, a gaming IP with potential for expansion
- Scaling technology for AI agents, powered by $MAGIC.
The opportunity of AI
Despite the growth seen in the AI sector through DappRadar’s AI Trends page, the market for AI Agents is still in its infancy. Builders need to create agents and user interface that appeal to a mainstream audience, and that manage to please and attract all kinds of users.
Treasure DAO’s pivot put its focus on AI developments. Recent updates to the Treasure ecosystem put emphasis on AI, and includes features like ‘image analysis’ and ‘token buy recommendations’.
- AI Agent Creator – NFT holders from various leading collection got access to the AI Agent Creator, allowing them to build an AI agent using their NFT. These agents support for example, automated gameplay, custom personalities, chat functionality, and performing autonomous tasks.
- AI Agent Marketplace – Treasure DAO is building a marketplace to trade AI agents and use the services offered through these agents. Users can create, trade, and upgrade AI agents with unique attributes like skills, reputation, and persistent memory. These agents operate across Web3 platforms, including games, DeFi tools, and social media. Early demos are expected in late 2025.
Closing words
These AI initiatives reflect Treasure DAO’s shift from a broad game-publishing model to a focused, AI-driven ecosystem, leveraging $MAGIC and blockchain to create interactive, scalable Web3 experiences. The emphasis on autonomous agents and marketplaces signals a long-term bet on AI as a core component of decentralized gaming.
