Cardano Treasury Proposal Seeks 22 Million ADA for Tokenized Copper

Cardano governance is considering a request to withdraw 22 million Cardano (ADA) from its treasury to create a physical copper reserve represented by tokens. The proposal remains subject to approval by the network’s governance bodies, and its break-even figures depend on assumptions about copper prices and ADA’s dollar value.

Toto Finance Inc. submitted the withdrawal proposal on Oct. 15. The action requires ratification by delegated representatives (DReps) and the Constitutional Committee, with a 67% threshold for each body. The request is denominated in ADA rather than dollars.

The proposal assumes copper would be purchased at $6.73 per pound and calculates a break-even sale price of about $10.06 per pound. That is an increase of roughly 49.4% from the assumed purchase price if the full budget is spent and ADA’s dollar value does not change. The figures describe an illustrative scenario, not a price forecast or a commitment to sell at that level.

The plan assigns 14,724,409 ADA, or 66.93% of the request, to copper purchases. It allocates another 2,640,000 ADA to technology and project management, 3,533,859 ADA to external operations and assurance, 441,732 ADA to execution, and 660,000 ADA to independent administration. Those allocations total 22 million ADA.

Toto Finance proposes holding the copper for 18 to 24 months before selling it. The plan calls for net sale proceeds, along with unused or unearned funds, to be returned by month 36. It does not guarantee that the treasury will recover the original ADA amount or earn a profit.

Each CuTT token is intended to represent one verified pound of copper. The proposed system would mint the tokens on Ethereum, lock them in a bridge and issue a matching representation on Cardano. The contracts and security reviews needed for that system are future work.

The proposal says an independent oversight provider still needs to be appointed. It also calls for third-party enforcement arrangements to be in place before funds are put at risk. The governance action is set to expire Nov. 15.