Cardano’s community treasury is being asked to spend about $5 million on a copper reserve, with costs that would require the metal to rise nearly 50% to recover the original investment under the proposal’s assumptions.
Toto Finance, a company that turns physical commodities into blockchain tokens, wants 22 million ADA for what it calls the Cardano Strategic Copper Reserve. Voting closes Nov. 15.
Copper, also known as “Dr. Copper” for its role as a barometer of global growth, is widely tracked as a signal of industrial expansion, with rising prices often pointing to an economic boom.
About two-thirds of the money would buy exchange-grade copper stored in a COMEX-approved warehouse near New Orleans. A token called CuTT would represent each verified pound. 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.
The other third covers storage, insurance, audits, oversight and Toto’s work. If the full budget is spent and ADA’s dollar price stays unchanged, copper would need to rise about 49.4% to recover the withdrawal.
The proposal assumes copper is bought at $6.73 a pound and sold at about $10.06. Lower spending would reduce that hurdle, while a stronger ADA would raise it.
“Copper has significant upside potential, with bullish scenarios projecting approximately 30% annual appreciation. 4% break-even threshold. Of course, commodity prices can also decline,” Monty Metzger, Toto’s founder and chairman, told CoinDesk in an email.
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