Abracadabra DAO Votes to Liquidate MIM Amid $21M in Bad Debt

Abracadabra DAO has launched a vote to shut down its decentralized finance protocol and liquidate Magic Internet Money (MIM) after accumulating $21 million in bad debt. The proposal would convert remaining assets into Ether (ETH), with the estimated collateral value being less than $0.04 per MIM, leaving more than 95% of liabilities uncovered.

MIM is a type of stablecoin that represents protocol debt. If the vote passes, Abracadabra's SPELL governance token would have no accounting value until MIM liabilities are fully repaid.

The proposal prioritizes MIM claims over Abracadabra's SPELL governance token and gives MIM holders priority in receiving the proceeds from the liquidation process.