Toto Finance (@totofinance) is asking Cardano's (@cardano) community treasury to fund a copper reserve through a 22 million $ADA proposal, worth about $5 million. Voting closes Nov. 15. Under
Toto Finance (@totofinance) is asking Cardano's (@cardano) community treasury to fund a copper reserve through a 22 million $ADA proposal, worth about $5 million. Voting closes Nov. 15.
Under the plan, the metal would be held for 18 to 24 months, then sold over the following year, with net proceeds and unused funds returned to the treasury by month 36. Because the proposal is a bet on the copper price, there is no guarantee the treasury recovers its original investment.
Toto Finance, a company that turns physical commodities into blockchain tokens, wants the ADA for what it calls the Cardano Strategic Copper Reserve.About two-thirds of the money would buy exchange-grade copper stored in a COMEX-approved warehouse near New Orleans, and a token called CuTT would represent each verified pound.
According to the itemised breakdown, 14,724,409 ADA, or 66.93%, is earmarked for the copper itself.The other third covers storage, insurance, audits, oversight and Toto's work.Toto could receive up to 3.36 million ADA and would retain commercial rights to its separately funded tokenized-copper business.Founder Monty Metzger has said Toto takes no direct profit from the proposal, attributing much of the operating expense to Cardano's governance requirements for oversight and auditing.
The proposal assumes a purchase price of $6.73 per pound and a sale price of about $10.06.That means copper would need to rise about 49.4% for the treasury to recover its investment if the full budget is spent and ADA's dollar price remains unchanged.Lower spending would reduce that hurdle, while a stronger ADA would raise it.
Metzger told CoinDesk that bullish scenarios project roughly 30% annual appreciation, which would lift copper 69% over 24 months, but he also acknowledged that commodity prices can decline.
The size of the request also matters for the treasury's capacity. Cardano has a withdrawal limit of 500 million ADA that extends through about July 2027, and withdrawals had reached 457.4 million ADA as of October 16.The copper proposal would use just over half of the remaining allowance.
There are open items on the technical side too. The proposal calls for initially minting the tokens on Ethereum and locking them in a bridge that enables matching tokens on Cardano, and the contracts and security reviews have yet to be completed.Metzger has said the goal is to scale to $5 billion in tokenized copper, with Cardano as a flagship.
ADA holders will decide whether a commodity price bet is a suitable use of a finite treasury allowance.
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