Abracadabra DAO Passes Protocol Wind-Down Vote After Lowering Quorum

Abracadabra DAO has approved a proposal to wind down the decentralized lending protocol on its second attempt after lowering its governance quorum requirement from 3 billion to 300 million $SPELL ¹. The reduced threshold amounted to approximately $26,000 worth of SPELL tokens at the time of the vote ¹. The move to terminate the project comes less than four months after the decentralized autonomous organization approved a stewardship transition intended to revitalize the platform and secure a long-term roadmap for the ecosystem ¹.

Under the terms outlined in the wind-down plan, holders of the depegged $MIM stablecoin face a proposed resolution of four cents on the dollar ¹. The proposal assessed the actionable backing for the outstanding 22 million MIM supply at $900,000, while warning that failing to proceed voluntarily could risk legal actions from users attempting forced liquidations ¹. The measure omitted details regarding roughly $9 million in unexplained outflows recorded during June and July, as well as $3 million worth of $WETH accumulated by a treasury address in recent days ¹.

Governance Adjustments and Treasury Participation

The measure was carried by just two voting participants, relying heavily on balances derived from project reserves ¹. One address belonging to the proposal author cast 100 million votes in favor, acquiring those tokens using $USDC and WETH transferred directly from a wallet labeled as the MIM Treasury ¹. An additional 296 million affirmative votes were cast directly by the treasury wallet itself ¹.

Although Snapshot recorded the vote as rejected under the hardcoded 3 billion SPELL requirement, the organizers declared the vote valid through an arbitrary quorum adjustment disclosure ¹. The authors claimed the original threshold was unworkable because the total circulating supply stood at just over 1 billion SPELL and the administrative keys required to update the Snapshot space were held by unreachable former team members ¹. Organizers unilaterally applied a 30% participation benchmark to declare the wind-down passed ¹.