Abracadabra DAO passes wind-down proposal after reducing quorum

The DeFi project Abracadabra DAO, which issues the MIM stablecoin that has long been depegged, has approved a contentious plan to close the protocol. This came on a second try after the quorum threshold was cut from 3 billion to 300 million SPELL tokens, valued at only $26,000.

This "orderly wind down" proposal arrived under four months after the DAO had approved a "strategic transition of stewardship" that pledged to "revitalize Abracadabra… and establish a clear roadmap for the long-term success of SPELL and the broader Abracadabra platform."

After a stretch where the stewardship team says it "worked effortlessly" to improve the situation, a September attempt to close the protocol, which was once valued at $6 billion, stirred controversy.

That proposal set MIM's "actionable backing" — for its 22 million token supply — at only $900,000 and offered MIM holders four cents on the dollar as a settlement.

Not noted in that proposal were the nearly $9 million in unexplained outflows from June and July. Yet the proposal did highlight the "risk of facing users enforcing a liquidation via legal actions, which is more costly to all stakeholders."

The "refined" vote last week was the same except for a reduced quorum threshold, and it crossed the new line because votes were cast from an address that Etherscan labels "Abracadabra.Money: MIM Treasury."

There has been no mention of the $3 million in WETH that this address has gathered recently, nor if that amount will become part of MIM's "effective backing."

MORE ON ABRACADABRA DAO TREASURY LOOTING IN PROGRESS

More Abracadabra shutdown context, because the previous tweet exceeded its character limits.

The "proposal" to shut down Abracadabra, one of the early questionable stablecoin projects, had some quite questionable DAO activity… https://t.co/n8FEcxGx38

— Mikko Ohtamaa (@moo9000) September 30, 2026

Quorum quibbling

Only two voters took part in the most recent Snapshot vote. The first attempt had been labelled "treasury looting" and fell short of quorum with a bit more than 100 million SPELL votes.

One of those addresses, the proposal's creator, voted 100 million SPELL in favor.

Of that sum, 40 million SPELL were acquired with USDC that came straight from the wallet marked MIM treasury, and another 59.5 million were bought with WETH, most of which also originated from the treasury wallet. The remaining 296 million votes came from the treasury wallet itself.

Observant readers will see that 396 million votes still fall far below the 3 billion SPELL quorum established for Abracadabra DAO votes.

The revised proposal includes a "quorum adjustment disclosure" which notes that with just over 1 billion SPELL in supply when the proposal was published, "the current quorum is therefore totally irrelevant and needs to be adjusted… [to avoid] paralysing the protocol."

However, because the Snapshot space's admin keys are held by former Abracadabra team members who are "not reachable," the space's "hardcoded quorum cannot be fixed."

Citing "simplicity" and users' "best interests," the proposal says a new quorum will be set at 30% vote participation, "in line with market standards."

Although Snapshot shows the vote as "rejected," it has apparently passed under the terms in the quorum adjustment disclosure.

Protos contacted Jack Niewold, who was named Project Lead in the June proposal, but has not received a reply.