Cardano Treasury Asked to Commit $5 Million to Tokenized Copper Investment

Toto Finance is seeking approval to withdraw 22 million ADA from Cardano’s community treasury to purchase tokenized copper, a move that could require the metal’s price to rise nearly 50% for the treasury to break even under the proposal’s assumptions.

The funding request, valued at approximately $5 million, would establish the Cardano Strategic Copper Reserve. Voting on the proposal is set to close on Nov. 15.

Toto Finance specializes in converting physical commodities into blockchain-based assets. Copper, often called “Dr. Copper,” is closely monitored by investors because its price can reflect changes in industrial demand and the broader global economy.

Copper Purchases Would Account for Most of the Budget

The proposal allocates roughly two-thirds of the requested funds to exchange-grade copper stored at a COMEX-approved warehouse near New Orleans. Each verified pound of the metal would be represented by a token called CuTT.

Toto plans to hold the copper for 18 to 24 months before selling it gradually over the following year. Net proceeds and any unspent funds would be returned to Cardano’s treasury within 36 months.

However, the arrangement does not guarantee that the treasury will recover its original investment.

The remainder of the budget would cover storage, insurance, audits, oversight and project services. If the entire allocation is spent and ADA maintains its current dollar value, copper would need to appreciate by approximately 49.4% to cover the withdrawal.

The proposal uses $6.73 per pound as the assumed purchase price and approximately $10.06 as the selling target. Lower spending would reduce the break-even hurdle, while an increase in ADA’s dollar price would raise the copper appreciation required to match the original contribution’s dollar value.

Toto Says Copper Could Outperform the Break-Even Target

Monty Metzger, Toto Finance’s founder and chairman, told CoinDesk that copper could deliver sufficient gains to offset the costs, although he acknowledged that commodity prices can move in either direction.

“Copper has significant upside potential, with bullish scenarios projecting approximately 30% annual appreciation. At that rate, copper would appreciate 69% over 24 months, potentially more than covering the 49.4% break-even threshold. Of course, commodity prices can also decline,” Metzger said by email.

He added that Toto would not directly profit from the proposal, explaining that Cardano’s constitutional requirements for auditing and oversight contribute to the project’s additional expenses.

The budget sets aside 2.64 million ADA for technology and project management, plus a 441,732 ADA execution fee. Toto could also receive up to 278,291 ADA through margins on third-party storage and insurance invoices included in the operating budget.

Combined, these payments could reach approximately 3.36 million ADA, accounting for about 15% of the total funding request.

Toto Retains CuTT Business Rights

Toto would maintain commercial ownership rights to its CuTT platform and retain revenue from the separately funded business. Cardano’s treasury would instead receive its financial return from copper sales and the recovery of unused funds.

Metzger said Toto aims to grow its operation to “$5 billion in tokenized copper assets,” adding that “Cardano could become our flagship showcase.”

The tokenization process would initially take place on Ethereum, where CuTT tokens would be minted and locked in a bridge designed to enable corresponding tokens to be issued on Cardano. The necessary smart contracts and security reviews remain outstanding.

Metzger noted that real-world asset tracking platforms have “historically focused heavily on Ethereum-based assets.”

Toto would retain legal title to the underlying copper. Metzger said an independent collateral agent and first-priority security arrangements would protect the treasury if the company failed, but he did not name the proposed agent.

Proposal Would Consume a Significant Share of Remaining Treasury Capacity

The funding request comes as Cardano approaches its existing treasury withdrawal limit.

The current cap allows 500 million ADA in withdrawals through approximately July 2027. By Oct. 16, withdrawals had reached 457.4 million ADA. Approving Toto’s request would therefore consume slightly more than half of the remaining capacity.

Under the current rules, returning the proceeds from the investment would not restore the withdrawal allowance used.

The proposal also faces a challenging approval threshold. In late May, the Cardano Foundation requested 7.8 million ADA to finance its 2026 summit. The proposal received 65.21% support, falling short of the required two-thirds majority, and the event was canceled.

Toto’s request is nearly three times larger. As the Nov. 15 voting deadline approaches, Cardano holders must weigh the potential benefits of tokenized copper against the investment’s substantial break-even requirement, operating expenses and the possibility of losses.