Treasure $MAGIC – Decentralized Game Console
Young 02/12 (gm, gm)
Treasure $MAGIC – 158M Mcap / 200M FDV (~13.7% of $APE)
MV of Treasury As of Sept 30: 70M
Thesis 1: Fundamentally strong and sound metaverse/game studio business with underpriced equity
- ◆Treasure currently attracts 4-5K WAU, 15-20K WAU at peak, 182K lifetime unique users, and currently has 10 studio grade games in pipeline
- ◆Extensive product suite with revenue share back to token
- ◆Treasure Development Kit w/ support for game engines like Unity Unreal + template smart contracts for on-chain games (live)
- ◆Treasure NFT marketplace w/ fee capture (live)
- ◆ERC-20/1155/721 omni-pool AMM
- ◆Treasure smart accounts and identity authentication kit
- ◆Increasing control of user journey and stack
- ◆Treasure desktop client for an almost steam-like experience
- ◆Developing account abstraction functionality alongside sovereign chain.
- ◆Strong and competent developer ecosystem with aligned incentives
- ◆Smol NFTs came about as a fair launch, open mint collection in 2021, and is only traded within Treasure. Today, Smol NFTs are designated as the main character in Smol Bound, a project led by the team behind Plant Vs Zombies 2, whose investment was led by Play Ventures and Bitkraft.
- ◆High book-value to market-cap ratio makes this a value play in an of itself
- ◆As of Sept 30, >50% of MAGIC is DAO owned, and 5% is in Protocol Owned Liquidity. Total Treasury value sat at 70M in valuation; and this was before the bull upswing post elections.
Thesis 2: Decisive pivot to an AI-centric strategy, and the first major gaming ecosystem to do so (confirmed Ai16z partnership)
- ◆One of the core devs for Smol world, leading game and community in Treasure in fact co-founded ai16z (and still remains at Smol)
- ◆Ai16z is a 400M MC fund/VC run by AI agents.
- ◆Their main product is Eliza, a customizable agent framework for twitter and discord
- ◆Internal speculation points to ai16z converting embedding AI sentience in current Smol NFTs, which is only traded on Treasure’s marketplace
Thesis 3: High likelihood for token re-rating on shift to individual blockchain (pre-2025)
- ◆Apecoin did 2x in the interval of the shift to main-net
- ◆Staking MAGIC for yield and voting power had been switched off since a few months ago in anticipation of migration, and will resume for Treasure Chain via Eigenlayer
- ◆Peak % of MAGIC staked (with lockup duration) was around 70%
- ◆At a conservative 40-50% staking ratio (Ethereum is 28%, Solana 68%, ICP 45%) that would price MAGIC around 2x from supply dynamic alone
- ◆Unlike some chains (ahem Worldcoin), MAGIC is the gas token.
- ◆Timeline: Official statements from team on Discord point to the chain launching “before the holidays”. A governance proposal for bridging of Magic Token from Arbitrum One to Treasure Mainnet is set to conclude on 3rd of Dec 2pm UTC
For a long-horizon thesis of why MAGIC should exist as the decentralized game console, please see an earlier substack post.
Further links:
Public roadmap: https://treasure-dao.notion.site/Treasure-Public-Roadmap-70a2ea5323bb44ad907a86a0e3fe0894
Q3 Transparency Report: https://online.flippingbook.com/view/678018493/7/
LitePaper: https://files.treasure.lol/Treasure+Infinity+Chains+-+Litepaper+v1.0.pdf
Affiliate Disclosures
- •The author and/or others the author advises do not currently hold, or plan to initiate, an investment position in target.
- •The author does not hold an affiliated position with the target such as employment, directorship, or consultancy.
- •The author is not being compensated in any form by target in relation to this research.
- •To the best of the author's knowledge, the information provided here contains no material, non-public information. The accuracy of the information is the responsibility of the reader.
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