Abracadabra is weighing a Snapshot proposal that would shut down the protocol and distribute remaining assets to MIM holders on a pro rata basis. Under the plan, any collateral left in the system would be converted into ether before payouts are made. The team estimates that recoverable backing stands at about $900,000, while bad debt totals roughly $21 million. Based on those figures, the implied recovery for MIM holders is around 4 cents for every $1 of face value. The available source material does not include a fuller breakdown of the voting process, execution timeline, or operational details tied to the proposed wind-down.
A Snapshot proposal is under discussion in the Abracadabra community that would liquidate the protocol, convert whatever collateral remains into ether, and distribute the proceeds to MIM holders on a pro rata basis.
According to the team, recoverable backing is about $900,000, against roughly $21 million in bad debt. On that basis, the expected recovery for MIM holders works out to about 4 cents on the dollar.
What the proposal says
The plan described in the available report is straightforward: liquidate the protocol, swap the remaining collateral into ETH, and then pay MIM holders proportionally from the recovered assets.
The source material does not provide additional details on the voting schedule, the exact scope of liquidation, or how the distribution process would be carried out.
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