Abracadabra Community Proposes Orderly Protocol Shutdown

The Abracadabra community is voting on a proposal to shut down the protocol and its stablecoin, MIM (Magic Internet Money). Due to multiple hacks, the protocol currently faces approximately $21 million in bad debt, with only $900,000 in collateral remaining—a reserve ratio of less than 4%. The liquidation plan involves converting remaining collateral into WETH and distributing it proportionally to users via Merkl smart contracts. Borrowers will receive residual value after debt repayment, while MIM holders are expected to receive approximately $0.04 per token. After a six-month claim period, any unclaimed assets will be redistributed to satisfy remaining claims. The protocol will cease operations once the liquidation process is complete.