Toto Finance has submitted a governance proposal to the Cardano community asking to withdraw 22 million ADA from the Cardano treasury, roughly $5 million, to establish a "Cardano Strategic Copper Reserve," according to ChainCatcher. Voting is scheduled to close on Nov. 15.
Plan centers on COMEX-grade copper and CuTT tokens
The proposal calls for the purchase and tokenization of copper that meets COMEX standards. Its CuTT token would represent each verified pound of physical copper.
About two-thirds of the budget would be used to buy exchange-grade copper held in a COMEX-certified warehouse near New Orleans. The remaining one-third would cover storage, insurance, audits, oversight, and Toto’s work fees.
Break-even threshold and timeline
The proposal says that if the full budget is spent and ADA’s U.S. dollar price stays unchanged, copper would need to rise about 49.4% for the treasury to recover its investment. The model assumes an entry price of $6.73 per pound and an exit price of about $10.06 per pound.
The planned holding period is 18 to 24 months, followed by sales over the next year. Net proceeds and any unused funds must be returned to the treasury before month 36.
Founder points to upside, while acknowledging downside risk
Monty Metzger, Toto’s founder and chairman, said copper has meaningful upside potential. In the proposal’s optimistic case, annualized gains are estimated at about 30%, which would translate to roughly 69% over 24 months and could clear the 49.4% break-even line. The proposal also states that commodity prices could fall.
Proposal would use more than half of the remaining withdrawal capacity
Toto said it would retain the commercial rights to its separately financed CuTT business and that it wants to scale tokenized copper assets to $5 billion.
Cardano’s 500 million ADA withdrawal cap remains in place until around July 2027. As of Oct. 16, 457.4 million ADA had already been used. Based on the proposal size, the requested 22 million ADA would consume more than half of the remaining capacity.