Toto Finance proposes $5 million copper reserve for Cardano

Toto Finance has submitted a proposal to the Cardano community treasury requesting 22 million ADA, valued at approximately $5 million, to establish the Cardano Strategic Copper Reserve. The initiative aims to convert physical copper into blockchain tokens, with each CuTT token representing one pound of verified COMEX Grade 1 copper.

Under the plan, the physical metal would be stored in a warehouse near New Orleans for 18 to 24 months. Approximately two-thirds of the requested funds would be used to purchase the copper, while the remaining third would cover storage, insurance, audits, and Toto Finance's operational costs. Toto Finance has pledged to return all net sale proceeds and unused funds to the treasury within 36 months.

Financial projections indicate that copper prices would need to rise by roughly 49.4% for the treasury to break even, given the overhead costs included in the purchase. Toto Finance founder Monty Metzger noted that while optimistic scenarios project an annual metal price increase of about 30%, commodity prices remain subject to market volatility. The company intends to scale its tokenized commodity platform to $5 billion in assets.