Toto Finance is seeking 22 million ADA from Cardano’s community treasury to establish a tokenized copper reserve. Under the proposal’s financial assumptions, copper prices would need to climb well beyond their previous record for the treasury to recoup its initial investment.
The proposal would commit roughly $5 million to purchasing and managing copper, with the metal needing to appreciate by approximately 49.4% to cover the full withdrawal if the entire budget is spent and ADA’s dollar value remains unchanged.
Toto Finance, which converts physical commodities into blockchain-based tokens, has submitted the plan under the name Cardano Strategic Copper Reserve. Community voting is scheduled to close on Nov. 15.
Copper is often called “Dr. Copper” because its price movements are considered an indicator of global economic health. Rising demand for the industrial metal can signal expanding manufacturing and broader economic growth.
How the Copper Reserve Would Work
Around two-thirds of the requested funds would go toward purchasing exchange-grade copper held in a COMEX-approved warehouse near New Orleans. Each verified pound of copper would be represented by a token called CuTT.
The proposal envisions holding the metal for 18 to 24 months before gradually selling it over the following year. By the 36-month mark, the treasury would receive the net proceeds alongside any funds left unused.
However, the plan does not guarantee that Cardano’s treasury will recover the ADA it contributes.
The remaining budget would cover storage, insurance, audits, oversight and Toto Finance’s services. If the full allocation is spent and ADA’s dollar price remains constant, copper would have to appreciate by about 49.4% for the treasury to break even.
The proposal estimates a purchase price of $6.73 per pound and a selling price of approximately $10.06. Spending less than the allocated budget would lower the required price increase, while an appreciation in ADA’s dollar value would increase the hurdle when measured against the original token contribution.
Toto Founder Points to Copper’s Growth Potential
Monty Metzger, Toto Finance’s founder and chairman, told CoinDesk by email that copper could deliver substantial gains, although he acknowledged the risks associated with commodity markets.
“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.
He added that Toto would not earn a profit directly from the proposal, attributing much of the additional expenditure to Cardano’s constitutional requirements for audits and oversight.
The budget includes 2.64 million ADA for technology development and project management, along with a 441,732 ADA execution fee. Toto could also earn up to 278,291 ADA from margins on third-party storage and insurance bills, with that amount included in the operating budget.
Combined, these payments could total approximately 3.36 million ADA, or around 15% of the overall request.
Toto Would Retain CuTT’s Commercial Rights
Under the arrangement, Toto would keep the commercial rights to its CuTT platform and any revenue generated by the separately funded business. Cardano’s treasury, by contrast, would benefit financially from selling the copper and recovering any unspent funds.
Metzger said the company aims to expand its offering to “$5 billion in tokenized copper assets” and described Cardano as a potential flagship showcase for the business.
The tokens would initially be issued on Ethereum and locked in a bridge, a software mechanism intended to support corresponding token issuance on Cardano. The necessary smart contracts and security reviews have yet to be completed.
Metzger noted that platforms tracking tokenized real-world assets have “historically focused heavily on Ethereum-based assets.”
Toto would retain legal ownership of the copper. Metzger said the treasury would be protected in the event of a Toto failure through “an independent collateral agent and first-priority security arrangements,” although he did not identify the proposed agent.
Proposal Would Use More Than Half of Cardano’s Remaining Budget
The request comes as Cardano’s treasury withdrawal capacity is approaching its limit.
A cap of 500 million ADA applies to withdrawals through approximately July 2027. By Oct. 16, 457.4 million ADA had already been used, leaving a limited amount available for new proposals.
If approved, Toto Finance’s 22 million ADA request would consume slightly more than half of the remaining allowance. Under the current rules, returning proceeds to the treasury would not restore the amount of withdrawal capacity used.
The proposal also faces a community approval hurdle. In late May, a 7.8 million ADA funding request from the Cardano Foundation for its 2026 summit received 65.21% support, falling short of the two-thirds threshold required for approval. The event was subsequently canceled.
Toto Finance is seeking nearly three times that amount for its copper reserve, putting the proposal’s potential returns, costs and risks under close scrutiny as the Nov. 15 voting deadline approaches.
About The Author
More Stories
Franklin Templeton added approximately $150 million in tokenized money market fund shares to the XRP Ledger on Friday, with all newly issued tokens sent to a single wallet. Two subscription transactions recorded on Thursday nearly quadrupled the fund’s token supply on the network.
Apex Group CEO Warns U.S. Clarity Act Delay Could Boost Asia and Middle East
a16z Rebrands Crypto Fund as a16z Frontier to Expand Its Investment Focus