Cardano treasury vote asks for $5 million to buy tokenized copper
A vote with a high break-even point
Cardano holders are being asked to vote on spending 22 million ADA (about $5 million) from the Cardano treasury to buy and tokenize copper. The proposal comes from Toto Finance, and voting is set to close Nov. 15.
There is no guarantee the treasury will get its original ADA back.
How the money would be split
- Two-thirds would buy exchange-grade copper stored in a COMEX-approved warehouse near New Orleans. A token called CuTT would represent each verified pound.
- One-third would cover storage, insurance, audits, oversight, and Toto's work.
- Timeline: The copper would be held for 18 to 24 months, then sold over the following year. Net proceeds and unused funds would be returned to the treasury by month 36.
The cost to break even
Under the proposal's assumptions, copper would be bought at $6.73 a pound and sold at about $10.06. If the full budget is spent and the dollar price of ADA stays unchanged, copper would need to rise about 49.4% to recover the withdrawal. A stronger ADA would raise that hurdle, while spending less would lower it.
What Toto would receive
Toto could receive up to about 3.36 million ADA (roughly 15% of the request). This would come from technology and project management fees, an execution fee, and possible margins on third-party storage and insurance invoices. According to Toto's founder, the company takes no profit from this proposal and would retain the platform's commercial rights and income from its separately funded CuTT business.
Sources
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