Metaplex Faces Legal Threat Over Plan to Sweep $7M in Unclaimed SOL into DAO Treasury
Burwick Law Counter-Proposes Metaplex’s Suggestion for Unclaimed SOL
Solana-based NFT infrastructure protocol Metaplex is in the hot zone after it revealed that it will sweep over 54,000 unclaimed SOL — worth around $7.3 million — into its DAO treasury. The tokens are the byproduct of a past network upgrade that allowed NFT metadata accounts to be resized, reimbursing rent (in SOL) to users. The remaining tokens will be swept to the DAO unless claimed by April 25, 2025.
Legal Risks and Transparency Concerns
In a April 22 open letter, New York law firm Burwick Law said it had serious legal concerns about Metaplex’s approach. According to the law firm, many users weren’t properly informed and the move could be in violation of consumer protection laws. “Rent was paid so NFTs could live on-chain, not to fund a future windfall,” the letter states.
It likens it to unlicensed banking fees and warns that the protocol’s action may amount to unfair enrichment.
Proposed Alternative Approach
Instead of sweeping all unclaimed SOL, Burwick proposes reimbursing impacted users directly via a protocol upgrade. The DAO, the firm suggests, could retain up to 10% of funds to cover ongoing network maintenance.
This compromise is designed to uphold user trust while still leaving room for Metaplex’s ecosystem aspirations more broadly.
Metaplex Silence
Metaplex has made no public statement at the time of writing. The DAO earlier said any retrieved SOL might eventually finance community-lead initiatives like airdrops or grants, pending governance approval.
A Pattern of Legal Vigilance
Burwick Law boasts a history of crypto-specific litigation, including class action filing against the LIBRA token team for insider trading just recently. The law firm is urging Metaplex to alter its course of action before legal complications and loss of trust in the Solana community take effect.
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Metaplex Faces Legal Threat Over Plan to Sweep $7M in Unclaimed SOL into DAO Treasury
Burwick Law Counter-Proposes Metaplex’s Suggestion for Unclaimed SOL
Solana-based NFT infrastructure protocol Metaplex is in the hot zone after it revealed that it will sweep over 54,000 unclaimed SOL — worth around $7.3 million — into its DAO treasury. The tokens are the byproduct of a past network upgrade that allowed NFT metadata accounts to be resized, reimbursing rent (in SOL) to users. The remaining tokens will be swept to the DAO unless claimed by April 25, 2025.
Legal Risks and Transparency Concerns
In a April 22 open letter, New York law firm Burwick Law said it had serious legal concerns about Metaplex’s approach. According to the law firm, many users weren’t properly informed and the move could be in violation of consumer protection laws. “Rent was paid so NFTs could live on-chain, not to fund a future windfall,” the letter states.
It likens it to unlicensed banking fees and warns that the protocol’s action may amount to unfair enrichment.
Proposed Alternative Approach
Instead of sweeping all unclaimed SOL, Burwick proposes reimbursing impacted users directly via a protocol upgrade. The DAO, the firm suggests, could retain up to 10% of funds to cover ongoing network maintenance.
This compromise is designed to uphold user trust while still leaving room for Metaplex’s ecosystem aspirations more broadly.
Metaplex Silence
Metaplex has made no public statement at the time of writing. The DAO earlier said any retrieved SOL might eventually finance community-lead initiatives like airdrops or grants, pending governance approval.
A Pattern of Legal Vigilance
Burwick Law boasts a history of crypto-specific litigation, including class action filing against the LIBRA token team for insider trading just recently. The law firm is urging Metaplex to alter its course of action before legal complications and loss of trust in the Solana community take effect.
Read More
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