Abracadabra’s Governance Space: Created on September 29th, the proposal “Proposal for an orderly wind down of MIM and Abracadabra” was shown in the Snapshot with voting ending on October 1. For: 100,047,420.51; Against: 523,446.06; 2 votes recorded. This is an off-chain governance voting result. It does not mean the redemption contract has been deployed, nor does it mean the protocol has been fully liquidated.
The proposer states that, based on its calculations, MIM has collateral available of approximately $900,000; additionally, about $300,000 is held in the Arbitrum WETH Cauldron, which the proposal says is difficult to recover in the short term due to immutable parameters, and may require years. MIM outside the protocol is approximately $22,000,000, so the team estimates the effective collateralization rate is below $0.04 per MIM token, with bad debt of about $21,000,000. These are the disclosures made by the proposer; they are not independent audit conclusions yet.
The plan is to convert recoverable Cauldron collateral into WETH and distribute it according to the rules: borrowers first pay a $1 per MIM debt amount deducted based on the collateral value; MIM holders then share the remaining assets in proportion to their balances at the snapshot. The proposal currently roughly estimates this to be about $0.04 per MIM token. The balance snapshot is no earlier than October 15; only after that will the Merkl redemption contract be deployed and the list of claimable addresses be published. Any unclaimed portion after six months will be distributed again according to the proposal’s rules. The immutable positions can still be withdrawn on-chain. Key steps still depend on actual execution.
Transmission to the market occurs in two layers. For MIM holders, the issues are (1) receiving back assets at a discount and (2) snapshot eligibility risk. Converting Cauldron collateral into WETH may create one-time on-chain sell pressure, but the scale and direction must be confirmed trade by trade. More directly for
$SPELL : the proposal explicitly treats MIM as a protocol liability that is prioritized over governance tokens, and states that until the liability is not fully settled, SPELL has no remaining accounting value. This is the proposer’s legal and accounting position; it does not mean the token has been formally cancelled, but it significantly increases the risk of liquidation and potential de-tokenization to zero.
In response, MIM holders should rely on the Snapshot proposal and Abracadabra’s official channels for subsequent announcements; save your holding addresses and position records, and verify only after the snapshot block, the redemption contract, and the claim list are formally published. Do not connect your wallet or sign anything because you find “redemption page” links. When evaluating
$SPELL , treat it first as high-risk governance equity; you cannot treat MIM’s $1 face value as a redeemable promise.
What to watch next: whether the snapshot block is published after October 15; whether the collateral is actually converted and WETH is credited; the Merkl contract address, audits, and the redemption list; whether the governance team adjusts the distribution plan. If the proposal does not get implemented, if new external funding is added and materially tops up MIM collateral, or if the final accounting is significantly higher than the proposal’s valuation, then my assessment of liquidation losses and SPELL’s remaining value will need to be re-evaluated.
Market context: As of 2026-10-03 12:37 (Beijing time), Binance spot SPELL/USDT 24h rolling quoteVolume is approximately 254,032 USDT, with a price change of -0.402%. Source: Binance Spot /api/v3/ticker/24hr, queried at the same time. This data is only for trading context and cannot prove the market has priced in the proposal.
Source: Abracadabra Snapshot governance proposal (created Sep 29, ended Oct 1): https://snapshot.org/#/abracadabrabymerlinthemagician/proposal/0x75596fc0bf2d86573de1754f4c8cf1228a4795ffa48ce47013cedb1daf2ae23e
Trading source: Binance Spot API /api/v3/ticker/24hr (spot SPELL/USDT, 24h rolling; queried 2026-10-03 12:37 +08:00).
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