Abracadabra DAO Votes on Wind-Down After $21 Million MIM Debt

Abracadabra DAO is voting on a proposal to shut down the lending protocol and liquidate Magic Internet Money (MIM) after roughly $21 million in bad debt left the stablecoin severely undercollateralized.

The proposal says MIM debt is backed by about $1.2 million in collateral, including approximately $300,000 in an Arbitrum WETH pool. That leaves about $900,000 in collateral considered executable. Effective backing is below $0.04 per MIM, meaning more than 95% of the token is unsupported.

The proposal also says SPELL, Abracadabra’s governance token, has no accounting value until MIM liabilities are fully repaid. MIM is treated as a protocol liability because it is a collateral-backed stablecoin issued through Abracadabra’s lending markets.

The Snapshot vote began Sept. 29 at 1:24 a.m. ET (05:24 UTC) and is scheduled to close Sept. 30 at 1:24 p.m. ET (17:24 UTC). Two addresses had voted: one supporting the proposal with about 100 million staked SPELL and another opposing it with roughly 523,000 SPELL.