Crypto law firm Burwick Law has called out Solana-based non-fungible token platform Metaplex’s plan to sweep unclaimed Solana (SOL) into its treasury instead of returning it to investors, suggesting it could be at risk of litigation if it follows through with the plan.
Last year, Metaplex, an NFT protocol, discovered a way to reduce the amount of onchain storage required for certain NFTs. By resizing the NFTs, Solana NFT holders can claim a small amount of SOL.
In October, Metaplex said that Metaplex Token Metadata (TM) NFT holders will be able to execute a “resize optimization” for all TM accounts with a deadline of April 25.
Those who didn’t do it voluntarily by the deadline would have their excess SOL transferred to the Metaplex DAO automatically, with how they’re to be used yet to be determined.
However, Burwick criticized the firm’s plan to sweep unclaimed funds to its DAO treasury instead