# Abracadabra Moves to Shut Down MIM as Backing Falls Below 4 Cents

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/25601
Published: 2026-09-30T02:49:15.000Z
Updated: 2026-09-30T02:49:15.000Z
Section: Business

> The proposal would liquidate the protocol’s remaining assets, convert collateral into Ether and distribute proceeds to MIM holders.

Abracadabra has opened a governance vote to shut down the MIM stablecoin protocol and liquidate its remaining assets after effective backing fell below $0.04 per token.

The protocol estimates it has about $900,000 in executable collateral against $21 million in bad debt. More than 95% of MIM is estimated to lack collateral support.

Under the proposal, remaining protocol assets would be liquidated, collateral would be converted into Ether (ETH), and the proceeds would be distributed proportionally among MIM holders.

MIM’s liabilities rank ahead of Abracadabra’s governance token, SPELL. SPELL would have no accounting value until MIM’s liabilities are fully repaid.

The shutdown and liquidation plan is now subject to a governance vote.