Treasure DAO has officially announced the complete shutdown of its Layer 2 blockchain, Treasure Chain, with operations ceasing on May 30, 2025.
As stated in their post on X, all users are required to withdraw their assets, including ETH, MAGIC, SMOL, and NFTs, before the end of May.
The decision follows the successful ratification of governance proposal TIP-52, which marked the community’s consensus to wind down the chain.
Treasure DAO has emphasized that any assets left on the chain after the shutdown may become inaccessible, urging immediate action from its users.
Transition Process Underway as Bridging and Migration Begin
In preparation for the shutdown, the team has already disabled bridging into Treasure Chain, and is actively facilitating migration of liquidity and NFTs to alternative networks.
The MAGIC-ETH liquidity pair has been successfully migrated to Ethereum Layer 1 and is now tradable on Uniswap, while SMOL tokens are being routed through platforms like Nexus.
NFT holders, particularly those owning Beacon WOP NFTs, are instructed to bridge these assets to Arbitrum via the official Treasure bridge.
A detailed timeline has been shared, including the shutdown of the Topaz Testnet on May 9, 2025, and the mainnet deactivation scheduled for May 30 at 11:00 AM PST.
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Step-by-Step Instructions Provided for Asset Recovery
To assist users in reclaiming their assets, Treasure DAO has provided clear and accessible steps across its official communication channels.
These include direct bridge links for MAGIC and ETH to Ethereum Layer 1, SMOL migration instructions via Nexus, and dedicated paths for transferring NFTs to Arbitrum.
In addition, users have been advised to remove and migrate all liquidity provider (LP) positions associated with the chain.
These steps are critical to prevent asset loss, and the team has made tools and links available to ensure a smooth offboarding process.
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Wind-Down Aims to Cut Costs and Refocus on Core Development
Despite the shutdown, Treasure DAO remains confident in its strategic pivot. According to their latest update, the DAO has secured enough USDC runway to operate through Fall 2026, excluding its still-recovering MAGIC treasury.
By winding down the Treasure Chain, the team aims to reduce operational overhead and reallocate resources toward product innovation and ecosystem development.
The move is being framed as a necessary evolution rather than a setback, with the DAO positioning itself for a new growth phase supported by a leaner, more sustainable infrastructure.