Treasure($MAGIC)
Summary: Treasure is the culmination of the past two years of tokenomic design breakthroughs in the web3 space combining it with near flawless execution. Network effects deeply integrated into its architecture build momentum over time and are primed for exponential growth. If it requires compelling the mass of developers to create this digital world that is web3, it is safe to say that Facebook’s meta is no comparison to Treasure.
Introduction: Treasure started as a derivative of Loot after Loot failed to gain traction beyond the initial hype. Treasure provides a bottom-up approach to metaverse creation, instead of the developers leading the trajectory of Treasure and building the whole metaverse, free in-game assets are given to community members, shifting the narrative and making the community focus less on the game development aspect and more towards the culture and world-building using the free in-game assets and minimum building blocks. The leader of the first round 1kx suggests that this is a culture creation minimum viability game (MVG), where ownership distribution of the world occurs as the game is being built. This provides an ecosystem where artists and developers instantly are able to leverage the community and players in return receive an enhanced experience. This symbiotic relationship between developers and community members provides the opportunity for large-scale network effects to occur; an enhanced metaverse experience brings in more developers which bring in more users ad Infinitum. Within a month of launch on Arbitrum 11 projects were committed to treasure leading MAGIC to grow from a 4.5m market cap to 130m market cap within two months of its marketplace launch. Since then 80m worth of NFTs has been traded on MAGIC of which 9m on Jan 4th alone, surpassing Axie Infinity’s marketplace volume. The NFTs on magic are all taxed by five percent which is redistributed to the DAO for further ecosystem development. Treasure presents the opportunity to not only surpass OpenSea due to higher transaction volumes on Arbitrum due to cheaper fees but also overtake games such as Axie Infinity as Treasure is not dependent on a single game.
Liquidity Game:
In essence, Treasure is a game in accumulating $MAGIC and Treasure NFTs. The goal of treasure policy is to retain as many users in the game as possible to maintain pool liquidity health. Due to Treasure not being bottlenecked on a single game the DAO can leverage the community through monetary policy to expand the metaverse at exponential speed. Inflation is used as an incentive for the development of aspects of the metaverse. An example would be Treasure’s proposal 07 where part of the emissions was allocated in purchasing its own Sushiswap liquidity through Olympus pro bonds- as long as user activity and development outgrows inflation the community will share in this prosperity. MAGIC emissions will be scarcer by the year with the schedule to be fully unlocked in 12 years. NFTs in Treasure are yield-bearing assets and require staking to engage in the game. The Stake to play aspect is inspired by CURVE’s voting escrow mechanism which led to a full-on war between protocols to gain yield and in turn liquidity.
Finishing thoughts:
MAGIC at current prices($4.55) at a market cap of $129,000,000 is an immense value proposition, in its brief 6-month life-span it already has accomplished enough to be a billion-dollar protocol. Right now the marketplace is only available to curated projects but once its general marketplace(The Trove) opens its gates Opensea will have a run for its money.