Cardano holders are being asked to approve 22 million ADA, about $5 million, from the community treasury to buy and tokenize copper. The proposer is Toto Finance, a firm that turns physical commodities into blockchain tokens. Voting ends on November 15, according to CoinDesk.
The plan is called the Cardano Strategic Copper Reserve. About two-thirds of the money would buy copper in a COMEX-approved warehouse near New Orleans, with each verified pound represented by a CuTT token. The reserve would be held for 18 to 24 months, sold over the following year, and the net proceeds and unused funds returned to the treasury by month 36.
The math is demanding. Copper would need to rise about 49.4% to recover the withdrawal, assuming the full budget is spent and ADA’s dollar price is unchanged. The model assumes a purchase at $6.73 a pound and a sale near $10.06.
CoinDesk lists several risks. The request uses over half of the remaining 500 million ADA withdrawal allowance, with 457.4 million used as of October 16, and returned proceeds would not replenish it. Toto could receive up to about 3.36 million ADA, roughly 15% of the request, in fees and margins. Tokens would be minted on Ethereum and bridged to Cardano, and the contracts and security reviews are still future work. Toto would hold legal title to the copper, and the collateral agent is unnamed.
Earlier this year, a separate 7.8 million ADA request got 65.21% support, short of the two-thirds needed, and was canceled.
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Sources:
- CoinDesk: Cardano holders are being asked to bet $5 million on copper hitting a new record
- Traders Union: Cardano treasury faces copper reserve vote with nearly 50% break-even hurdle
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