Abracadabra DAO has passed a contentious proposal to carry out an orderly wind down of the protocol behind Magic Internet Money (MIM), the long-depegged stablecoin tied to the DeFi project. The measure cleared on its second try after the quorum requirement was reduced from 3 billion SPELL to 300 million SPELL, a threshold the report said was worth only about $26,000.
The vote came less than four months after the DAO had approved what it called a "strategic transition of stewardship," a move that promised to "revitalize Abracadabra… and establish a clear roadmap for the long-term success of SPELL and the broader Abracadabra platform." After a period in which the stewardship team said it had "worked effortlessly" to improve the situation, a late-September attempt to shut down the protocol, once valued at $6 billion, became highly disputed.
Under the proposal, the "actionable backing" for MIM’s 22 million supply was set at $900,000. It also proposed a resolution for MIM holders at four cents on the dollar.
Protos said the proposal did not mention nearly $9 million in unexplained outflows recorded in June and July. It did, however, stress the "risk of facing users enforcing a liquidation via legal actions, which is more costly to all stakeholders."
A revised vote with a lower quorum
According to the report, last week’s "refined" vote was identical to the earlier version except for the lower quorum threshold. It crossed that newly defined line with votes cast directly from an address labelled Abracadabra.Money: MIM Treasury on Etherscan.
The report also said there had been no explanation of the roughly $3 million in WETH that the address had accumulated in recent days, or whether that amount would be added to MIM’s "effective backing."
Mikko Ohtamaa wrote on September 30, 2026 that the proposal to shut down Abracadabra involved "some quite questionable DAO activity."
Only two addresses took part in the Snapshot vote
Just two voters participated in the latest Snapshot vote. The first round had been described as "treasury looting," but it failed to meet quorum with only a little more than 100 million SPELL votes in total.
One of the two addresses, identified as the proposal’s author, cast 100 million SPELL votes in favor. Of that amount, 40 million SPELL were bought with USDC received directly from the wallet labelled as the MIM treasury, while another 59.5 million SPELL were bought with WETH, most of which also came from the treasury wallet.
The other 296 million votes were cast by the treasury wallet itself. That brought the total to 396 million SPELL, still far below the original 3 billion SPELL quorum set for Abracadabra DAO votes.
Displayed as rejected, treated as passed
The refined proposal included what it called a "quorum adjustment disclosure." It said that with a little more than 1 billion SPELL supply at the time the proposal was published, the existing quorum was "totally irrelevant and needs to be adjusted" to avoid "paralysing the protocol."
It also said the Snapshot space’s admin keys were held by former Abracadabra team members who were "not reachable," which meant the space’s "hardcoded quorum cannot be fixed."
Citing "simplicity" and users’ "best interests," the proposal said a new quorum would be set at 30% vote participation, which it described as "in line with market standards." As a result, even though Snapshot displayed the vote as "rejected," the proposal was apparently considered passed under the terms laid out in that disclosure.
No response from named project lead
Protos said it had contacted Jack Niewold, who was named as Project Lead in the June proposal, but had not received a response by publication time.