Abracadabra puts protocol shutdown to a vote: MIM has about $21M in bad debt

Spell Token ($SPELL)

$SPELL, ethereum (+pulsechain): 0x090185f2135308bad17527004364ebcc2d37e5f6 · DexScreener

Stated MIM backing is about $900K against almost $22M of MIM outside protocol addresses, so holders face about $0.04 per token. The protocol will liquidate what can be recovered from collateral and distribute it to borrowers and MIM holders before shutdown. For $SPELL this is the worst case scenario: under the proposal terms, the token has no book value until the MIM debts are repaid.

Facts

Quote from the proposal as retold by CryptoCringe: total collateral backing MIM debt is about $1.2M, actually available is about $900K. Outside the protocol there is almost $22M in MIM, meaning backing is below $0.04 (more than 95% uncovered). [CryptoCringe, September 30, 2026]
The Block: Abracadabra governance is considering an orderly shutdown of the protocol, the proposal cites about $21M in MIM bad debt. Collateral that can be recovered will be liquidated and distributed to borrowers and MIM holders. [@TheBlockCo, September 30, 2026]
Protos: Abracadabra proposed an orderly shutdown, citing hacks that left MIM with no path back to peg. At the time of publication only two votes had been cast, including 100M SPELL.
Protos writes that the proposal does not address transfers of more than $8M (ETH, WETH, USDC, USDT) to Binance and an unknown address and does not include them in the MIM buyback calculations. Critics accuse the team of draining treasury funds. [protos.com, September 30, 2026]
$SPELL is now about $0.0000984, down -0.32% per day. DEX volume is only about $9.9K, on Binance spot about $0.0000974. [dexscreener]

Waiting for

The Snapshot vote outcome and how many votes will be collected in the end
Whether the team will respond to claims about transfers to Binance and the unknown address

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