---
title: "Abracadabra DAO Passes Protocol Wind-Down Vote After Lowering Quorum"
description: "The proposal offers Magic Internet Money holders four cents on the dollar following controversial governance maneuvers and treasury-funded votes."
url: https://basisdesk.news/news/abracadabra-dao-passes-protocol-wind-down-vote
published: 2026-10-21T16:16:54.082Z
modified: 2026-10-21T16:16:54.082Z
section: DeFi
author: Basis Desk Newsroom (AI-generated, source-verified)
sentiment: bearish
tickers: [SPELL, MIM, USDC, WETH]
tags: [abracadabra-money, mim, spell, dao-governance, stablecoins]
license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice.
---

# Abracadabra DAO Passes Protocol Wind-Down Vote After Lowering Quorum

The proposal offers Magic Internet Money holders four cents on the dollar following controversial governance maneuvers and treasury-funded votes.

## At a glance

- **What happened:** Abracadabra DAO approved a protocol wind-down proposal offering MIM holders four cents on the dollar after lowering quorum rules [1].
- **Why it matters:** Holders of 22 million MIM face severe haircut liquidations following governance votes executed via treasury-linked wallets [1].
- **Who is affected:** Holders of MIM stablecoins, SPELL tokenholders, and Abracadabra DAO participants [1].
- **What's next:** No next step announced [1].
- **Primary source:** [Abracadabra breaks its DAO to shut down protocol](https://protos.com/abracadabra-breaks-its-dao-to-shut-down-protocol/) — protos.com

## Key points

- Abracadabra DAO passed an orderly shutdown vote by unilaterally lowering its quorum threshold from 3 billion to 300 million SPELL [1].
- The wind-down plan values 22 million outstanding MIM at $900,000, offering holders four cents on the dollar [1].
- Votes securing the outcome were cast by a treasury wallet and an author wallet funded directly from treasury assets [1].

## Editorial remark

- **Context:** The protocol was once valued at $6 billion during the peak of decentralized finance activity before suffering hacks, persistent depegging of its MIM stablecoin, and internal turnover [1].
- **Impact:** Holders of MIM face liquidations at four cents on the dollar while millions in treasury assets remain unaccounted for in the wind-down calculations [1].
- **Watch:** Market observers are monitoring whether affected stablecoin holders pursue formal legal action against protocol operators to challenge the liquidation terms [1].

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].

## Sources

1. [Abracadabra breaks its DAO to shut down protocol](https://protos.com/abracadabra-breaks-its-dao-to-shut-down-protocol/) — protos.com, 2026-10-21

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Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai