# Abracadabra DAO Opens Vote to Shut Protocol, Liquidate MIM

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/25603
Published: 2026-09-30T02:53:22.000Z
Updated: 2026-09-30T02:53:22.000Z
Section: Technology

> The protocol estimates just $900,000 in enforceable collateral against $21 million in bad debt, leaving MIM less than 5% backed.

Abracadabra DAO has opened a vote on shutting down the decentralized finance protocol and liquidating Magic Internet Money (MIM) after $21 million in bad debt left the stablecoin with about $900,000 in enforceable collateral.

The proposal would liquidate Abracadabra’s remaining assets, convert the collateral into Ether (ETH) and distribute the proceeds proportionally among MIM holders. The estimated collateral value is less than $0.04 per MIM, leaving more than 95% of the stablecoin’s liabilities effectively uncovered.

MIM is a collateralized-debt-position stablecoin, meaning its outstanding supply represents protocol debt. The proposal gives MIM claims priority over Abracadabra’s SPELL governance token. SPELL would have no accounting value until MIM liabilities are fully repaid.

Abracadabra has accumulated more than $21 million in losses from multiple vulnerabilities, while MIM suffered a severe loss of its peg in June. If the vote passes, the protocol will formally begin the liquidation and distribution process.