Abracadabra Proposes Winding Down Failing MIM Stablecoin

Abracadabra's Magic Internet Money (MIM) stablecoin has been trading at a dismal $0.0446, a 95% decline from its intended peg of $1. In response to this collapse, Abracadabra is proposing to wind down the token entirely, settling outstanding debts at four cents on the dollar.

The protocol's troubles began in June 2026, when MIM's price slipped sharply due to market turmoil and Bitcoin's fall below $60,000. Abracadabra responded by raising interest rates across its Cauldron lending markets and cutting direct incentives.

Despite these efforts, MIM continued to plummet, losing tens of millions in value. The protocol's self-reported market cap now sits at around $4.63 million, with circulating supply estimated between 55-104 million tokens.

The proposed wind-down would be a significant blow to holders of MIM, who could face losses of up to 96% of their investment. It also raises questions about the future of Abracadabra's governance token, SPELL.