Summary

Treasure has launched an initiative that has been several months in production called the Autonomous Flywheel. The Flywheel is a series of protocols spanning DeFi, Social, and Consumer powered by autonomous AI. This proposal establishes the fee policy for these dapps. During current market conditions, revenue across Flywheel dapps will be converted into MAGIC and burnt with two exceptions: (1) burns will not occur if liquid runway for the DAO is below 18 months in USDC or highly-liquid assets like ETH, (2) the burn will not include the monthly opex costs for the DAO. These conditions ensure operational sustainability for the DAO. With a solid liquid runway, the focus should currently shift to boosting the value of the treasury through a programmatic buy-and-burn strategy. In a future proposal, token holders can decide to use earned fees to buy back MAGIC for a vested ecosystem fund if the price of MAGIC has recovered to a level where additional burns would be wasteful in an opportunity cost sense.

Proposal

This proposal authorizes Treasure contributors to engage in the following actions with accumulated fees:

• Summon (summon.wtf): An updated version of AI Frens on Base that allows character creators to launch autonomous OpenClaw versions of their agents after $100K trading volume is passed. Summon collects protocol fees on each trade
• AI Frens Solana: this version of the platform allows users to create 3D virtual characters through image uploads and text descriptions. These coins launch onto Pump.Fun, with TreasureDAO claiming the creator fees for each coin. Accumulated SOL will be converted to MAGIC and burnt by transfer to the zero address, with buy-burns reported in quarterly reports. (In the next few weeks, AI Frens Solana will be transitioned into Summon, Solana Edition)

Burns will take place the month following revenue generation, first using accumulated fees to cover the operational costs of the programs then burning the remainder.

This proposal authorizes Treasure contributors to apply the same fee structure to each new Autonomous Flywheel component. All protocol revenue, minus the operational cost of deployment and maintenance, will be burnt.

Amendments from Previous Vote

• The first two flywheel dapps have since launched, Summon and AI Frens Solana. The original proposal mentioned a dapp called 0xWizAI, a Twitter native token launcher using autonomous agents on Phala. Due to X's new rules against bots, this dapp is no longer feasible and has been discontinued prior to official audit

Amendments from Comment Period

• A commenter observed that the buy-and-burn policy should not include monthly opex costs so as to remain sustainable. We agree and added to this idea that burns should not occur unless 18 months of stable runway is secured