Magic Internet Money (MIM): tokenomics, risks and score
A stablecoin minted against yield bearing collateral through the Abracadabra protocol, which depegged during the 2022 crisis.
What Magic Internet Money is, and what it does
This is a stablecoin. It is designed to hold a fixed value, almost always one US dollar, so it can be used for payments and trading without the price moving underneath you.
What the MIM token itself does: It captures no protocol revenue. Any value rests on governance rights, on speculation, or on a change that has not happened yet.
Where it runs: Multi chain. Mechanism: Overcollateralised against yield bearing assets. It has been running since 2021, so roughly 5 years.
The facts
- TICKER
- MIM
- SECTOR
- Stablecoins
- CHAIN
- Multi chain
- LAUNCHED
- 2021, so around 5 years of operating history
- MECHANISM
- Overcollateralised against yield bearing assets
- MAXIMUM SUPPLY
- Minted against interest bearing collateral
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- DAO governed
- VESTING
- Complete
- LIQUIDITY BAND
- Micro cap. Thin, often a single venue or pool. Treat the quoted price as indicative only.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
Supply expands and contracts by design rather than following a fixed schedule. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
Changes go through token holder governance, so control is distributed but influenced by whoever holds most. Ownership is heavily concentrated. A small number of wallets hold enough to determine the price on their own.
Where it is strong and where it is not
- Audited, with published reports
- Fully open source, so the code can be independently reviewed
- Vesting is complete, so there is no scheduled supply overhang
- Heavily concentrated ownership means a few wallets control the outcome
- The token captures no protocol revenue, so its value rests on sentiment
- Thin liquidity. Check order book depth before assuming you can exit
- Has 2 recorded incidents on its history
Incident history
Depegged following revelations about a key contributor and again during the Terra collapse, when it held exposure to affected collateral.
The issuing protocol suffered further exploits affecting its markets.
Our read
The main risk
Multiple depegs and repeated exploits of the issuing protocol, with supply far below its peak.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.