A plan to distribute the remaining collateral and close Abracadabra ran into a participation threshold. The result leaves MIM’s backing shortfall unresolved and the proposed repayment timetable without approval from this vote.
Abracadabra’s proposal to wind down its Magic Internet Money (MIM) stablecoin and close the protocol has failed its vote. The Snapshot record marks the result as rejected after voting ended on September 30. Overwhelming support among the votes cast was not enough to meet the participation requirement.
Two wallets voted, short of a 3 billion quorum
Only two wallets participated. The address that submitted the proposal backed it with roughly 100 million SPELL in voting power, while another opposed it with 523,400 SPELL. Support reached 99.48%, but the quorum, or participation threshold, was 3 billion in voting power. The approximately 100.6 million total displayed on Snapshot amounted to just 3.35% of that requirement.
99.48% does not mean approval from all MIM holders. It is the share of voting power cast in favour. A majority among two participating wallets was insufficient to produce an accepted result.
A collateral shortfall behind the four-cent estimate
The proposal centres on the gap between outstanding MIM and collateral available to cover its debt. In the team’s September 29 assessment, nearly 22 million MIM was held outside protocol addresses. Collateral backing MIM debt totalled about $1.2 million, but $300,000 of it sat in an immutable Arbitrum WETH lending market. The team put the backing it could act on at approximately $900,000.
The authors estimated roughly $21 million in bad debt and described the position as follows:
“MIM’s effective backing is below $0.04”
Those figures are the proposer’s assessment, not the findings of an independent reserve audit. They underpin the estimate of a distribution worth about four cents per MIM. A token trading away from its dollar target and assets failing to cover debt are distinct problems; our stablecoin collateral analysis examines how that distinction matters in lending markets.
October 15 is not an approved payment date
The unsuccessful plan envisaged converting accessible collateral into ETH, calculating borrowers’ remaining shares after deducting MIM debt, and distributing the residual assets proportionally to MIM holders. It proposed taking a balance snapshot after the conversions were complete and no earlier than October 15, 2026. Reading that date as a firm payment day would therefore also be incorrect.
On July 5, the protocol’s official account was still describing work on an action plan to restore MIM’s dollar peg. The September proposal instead argued that no viable route back remained. The earlier statement shows how the proposed approach has changed; it is not a fresh repayment announcement.
Abracadabra’s MIM statement dated July 5, 2026
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