Abracadabra Proposes Winding Down MIM at Four Cents on the Dollar
Abracadabra put forward a plan to shut down its MIM stablecoin and distribute remaining value to holders at roughly four cents per token. The proposal sets out a vote and describes a shortfall between about $900,000 in recoverable collateral and $21 million in bad debt.
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What it means
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MIM holders are the main group facing the immediate impact, because the plan would route any remaining value back to them at a fraction of the token’s face value. Anyone watching the protocol’s governance also has a deadline to watch, since the vote is already open and set to close on Wednesday afternoon.
If the proposal is approved, the practical change would be a wind-down rather than an ongoing stablecoin operation, with remaining collateral liquidated and turned into Ether before distributions are made. What does not change inside the proposal is the payout method to holders: it still describes pro rata distribution rather than a different recovery formula.
Market reaction
The move was larger before the first headline than after. That is an observation, not an explanation: the market also moves on things nobody publishes.
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Has this happened before?
Nothing comparable yet.