About $5 million worth of Cardano is being requested from the community treasury; if the entire budget is spent and ADA’s dollar price remains unchanged, copper prices must rise 49.4% to break even.
Toto Finance, which develops tokenized commodity products, has proposed creating a physical copper reserve by requesting 22 million ADA from the Cardano community treasury. Voting closes on November 15; if the request is approved, about two-thirds of the budget will go toward buying copper.
The plan is to hold the copper for 18 to 24 months and then sell it within a year. Net proceeds and unused funds will be returned to the treasury by month 36, according to the proposal’s timeline. However, if the entire budget is spent and ADA’s dollar price does not change, copper prices must rise from $6.73 to about $10.06 per pound to cover the amount withdrawn.
Copper investment could test Cardano’s withdrawal limit
Toto founder and board chair Monty Metzger told CoinDesk that there are scenarios in which copper could gain about 30% a year. At that rate, the increase over two years could reach 69% and exceed the break-even threshold, Metzger said; however, commodity prices could also fall.
The proposal calls for issuing a CuTT token for every verified pound of exchange-grade copper held in a COMEX-approved warehouse near New Orleans. Toto’s founder said the company would not profit from the proposal. Payments to Toto for technology and project management, transaction fees, and margins on storage and insurance bills could total 3.36 million ADA under the proposal. That amount is about 15% of the request.
Cardano’s withdrawal limit of about 500 million ADA remains in effect until around July 2027; 457.4 million had been used as of October 16. The copper proposal could consume a little more than half of the remaining allowance. Under the current rules, proceeds returned to the treasury will not replenish the withdrawal limit.
The proposal follows an earlier Cardano community vote on major spending. The Cardano Foundation’s request for 7.8 million ADA in May for its 2026 summit failed to secure the required two-thirds support, and the event was canceled. Toto’s request is about three times that amount.
Not investment advice.