According to Huoxing Finance, Toto Finance, a company that tokenizes physical goods, has submitted a governance proposal to the Cardano community seeking to withdraw 22 million ADA (approximately $5 million) from the Cardano treasury to establish a “Cardano Strategic Copper Reserve.” Voting closes on November 15. The proposal plans to purchase and tokenize copper compliant with COMEX standards, with the CuTT token representing each pound of verified physical copper. Approximately two-thirds of the budget is allocated to purchasing exchange-grade copper in COMEX-certified warehouses near New Orleans, while the remaining third covers storage, insurance, auditing, oversight, and Toto’s operational costs. If the full budget is spent and the ADA/USD price remains unchanged, copper prices would need to rise by approximately 49.4% to recoup the treasury investment. The proposal assumes purchasing copper at $6.73 per pound and selling it at approximately $10.06 per pound, with a holding period of 18 to 24 months followed by a one-year liquidation window; net profits and any unused funds must be returned to the treasury by month 36. Toto’s founder and chairman, Monty Metzger, stated that copper has significant upside potential, with an optimistic scenario projecting an annualized return of about 30%, or a 69% increase over 24 months—potentially covering the 49.4% breakeven threshold—though commodity prices could also decline. Toto retains its commercial rights to independently fund its CuTT business and aims to expand the tokenized copper asset base to $5 billion. Cardano’s $500 million ADA withdrawal limit remains in effect until approximately July 2027; as of October 16, $457.4 million has been utilized, and this proposal would consume more than half of the remaining balance.
Toto Finance Proposes 22M ADA for Tokenized Copper on Cardano
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Summary
Toto Finance has proposed using 22 million ADA ($5 million) to establish a Cardano Strategic Copper Reserve, aiming to tokenize COMEX-grade copper. The plan involves purchasing copper at $6.73 per pound and selling it at $10.06, with a risk-to-reward ratio of approximately 1:1.5. Two-thirds of the budget will fund copper purchases near New Orleans, while the remainder covers logistics and operational costs. All profits and remaining funds must be returned to the treasury within 36 months. This initiative could impact on-chain trading signals for Cardano-based assets.
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