Toto Finance has submitted a proposal to the Cardano treasury seeking 22 million ADA, roughly $5 million, to create a tokenized copper reserve. The project, dubbed the Cardano Strategic Copper Reserve, involves purchasing physical copper, storing it securely, and representing the reserves through digital tokens. Voting on the proposal closes on November 15, and if approved, it would consume more than half of Cardano’s remaining treasury withdrawal allowance.
The plan allocates two-thirds of the budget to buying exchange-grade copper, with the rest covering storage, insurance, audits, and management. The copper would be held for 18 to 24 months before sales begin, with net proceeds and unused funds expected to be returned to the treasury within 36 months. However, there is no guarantee that the original ADA investment will be recovered.
According to the proposal, copper prices would need to rise by approximately 49.4% to recover the initial investment if the entire budget is spent and ADA’s price remains stable. Toto Finance founder Monty Metzger outlined a scenario where copper appreciates by 30% annually, though he acknowledged the possibility of price declines. The budget also includes 2.64 million ADA for technology and management, plus an execution fee of 441,732 ADA, potentially totaling 3.36 million ADA in compensation for Toto.
The proposal involves issuing CuTT tokens to represent each verified pound of copper, initially on Ethereum before bridging to Cardano. Smart contracts and their security audits are still pending. Toto would retain legal ownership of the metal and commercial rights to its platform, while the treasury would receive proceeds from copper sales and any unused funds.